SOAP FACTORIES OPERATING IN SINGAPORE (Particulars)

Mr P. Govindaswamy asked the Minister for Finance the number of soap factories operating in Singapore; whether the production of soap is sufficient to meet local needs and whether the prices of locally-produced soap have risen with the increase in prices, because of import duties, of imported soap.

The Parliamentary Secretary to the Minister for Finance (Mr S. Ramaswamy) (for the Minister for Finance): Mr Speaker, Sir, there are at present 16 soap factories operating in Singapore. All these factories manufacture washing soap but only four are manufacturing toilet soap. Lam Soon Oil and Soap (Singapore) Limited is the largest of the four manufacturing toilet soap and has a capacity of 26,800 cwts, per annum. The output from the other three factories is negligible. The local market for toilet soap is estimated to be 16,500 cwts, per annum, which is more than sufficient to meet local needs.

The retail price of locally-manufactured toilet soap remains unchanged at 30 cents per cake. In the case of laundry soap, some local manufacturers have lowered their prices. There is thus no increase in the price of locally-produced soap.

Mr Govindaswamy (Anson): The Parliamentary Secretary has said that the price of a cake of toilet soap is 30 cents. Is that true or not?

Mr Ramaswamy: A locally-manufactured cake of toilet soap is sold at 30 cents.

Mr Govindaswamy: Is there a controlled price, Mr Speaker, Sir?

Mr Ramaswamy: I have no information that the price of soap is 40 cents a cake.

Mr Speaker: I think the Member's last question was, is there a controlled price? The answer is `No'.

Mr Ramaswamy: It is not controlled. It is a fixed price.

Mr Govindaswamy: If there is any increase in the price of soap, what will the Government do?

Mr Speaker: Mr Ramaswamy, do you propose to take any action if there is an increase in the price of locally-made soap?

Mr Ramaswamy: There has been no increase in the price, Sir.

Mr Govindaswamy: Sir, I want a reply. If there is any increase in the price of soap, what will be Government's action?

Mr Ramaswamy: If there is an increase in the price, we will lift the duty on imports.

Mr Tang See Chim: Mr Speaker, Sir, I am afraid I am totally at a loss as to what the intention of the Government is in the event of an increase in the price of soap. My friend, the Parliamentary Secretary to the Minister for Finance, said that he would put a duty on imports. What does he mean by that?

Mr Ramaswamy: I said, "Lift the duty," not put it on.

Mr Teong Eng Siong (Sembawang): (In Mandarin): The Parliamentary Secretary has said just now that the price of locally-manufactured soap is 30 cents a cake. This is incorrect. From what I can gather, three cakes of locally-made soap cost $l.10 cents. I hope the Ministry concerned will fix the price of soap.

Mr Ramaswamy: The Member can get any amount of soap in the market at 30 cents a cake. If he is paying $1.10 for three cakes of soap, I think he is being swindled!

Mr Ho See Beng (Bras Basah): Mr Speaker, Sir, there has been a hue and cry from the public that the prices of locally-manufactured goods are increasing by leaps and bounds. Would the Government consider refraining from providing local manufacturers with tariff protection against imported goods, particularly pharmaceutical products, if they cannot meet the demand?

Mr Speaker: I think pharmaceuticals are outside the ambit of the original question. In any event, this matter was raised by the Member for Telok Blangah a few sittings ago and it was answered completely. But does the Government wish to answer the rest of the question of the Member for Bras Basah?

Mr Ho See Beng: Mr Speaker. Sir, I am not confining my question only to pharmaceutical products but also to general commodities.

Mr Speaker: The point I made was that I am trying to keep supplementaries relevant to the original question. Mr Ramaswamy has come prepared to answer questions on soap, and I will permit him to answer questions only on soap.

Mr Ramaswamy: I need further notice, Sir.

The Minister for Finance (Mr Lim Kim San): If I may, Mr Speaker. I would like to reply to the question raised by the Member for Bras Basah.

We on the Government side will always try to protect an industry if it is efficient, and we will always weigh the interests of the consumer with the benefits of local industry. But when we find that the local industry is not efficient and has raised the price very much higher than it was before, we will lift whatever tariff protection there is to see that the interests of consumers are not jeopardised. Does that answer your question, Mr Ho?

Mr Teong Eng Siong: (In Mandarin): Sir, just now I heard the Parliamentary Secretary say that locally-made soap costs 30 cents per cake. If that is the case, I would like to order through him.

Mr Speaker: Mr Teong, question No. 8.