RURAL DEVELOPMENT PROGRAMME FOR 1969 (Reduction in provision)

Mr Teong Eng Siong asked the Minister for Finance, in view of the increase in expenditure on defence, whether he will give an assurance that there will be no reduction in the provision for the Rural Development Programme for 1969, so that the people in the rural areas will continue to benefit from rural development schemes.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, the Member for Sembawang seeks an assur ance that in spite of the increase in defence expenditure, there will be no reduction in the provision for rural development in 1969.

I trust that the hon. Member is not taking the position that the welfare of the rural people-whether in Sembawang or elsewhere-has precedence over the security and safety of the entire population of the Republic. I am sure he is not. But his question reminds me of a cartoon I saw in Punch during World War II. Britain was then in a desperate position, standing alone against Nazi in Germany, and her cities were being bombed day and night. The cartoon depicts a bespectacled middle-aged woman addressing a gathering of village folk in some small English village. She said, "Of course, the Government's policy will advance the national war effort, but will it help this village?".

Now to answer the question. It is fortunate that defence expenditure can be met in 1969 without reducing essential expenditure in other fields. This, however, assumes that economic growth in 1969 will be good, resulting in good tax yields. If that proves not to be the case, then either defence expenditure will have to be reduced or other expenditure, including that of rural development, will have to be reduced.

I, therefore, cannot give the assurance that the Member seeks.

Mr Teong Eng Siong (Sembawang): (In Mandarin): I am quite satisfied with the Minister's reply because the development

Mr Speaker: Mr Teong, are you asking a supplementary question?

Mr Teong Eng Siong: (In Mandarin): No. I was just talking.