SINGAPORE TELEPHONE BOARD (Introduction of

[Mr Speaker in the Chair]

Mr Low Yong Nguan asked the Minister for Communications whether he is aware of protests from telephone subscribers against the proposed "ten-cent-a-call" system, and if he will give a categorical assurance that the proposed system will not be proceeded with.

The Minister for Communications (Mr Yong Nyuk Lin): Mr Speaker, Sir, I have been reading press speculation to the effect that the Singapore Telephone Board would be introducing a "ten cents a call" system for telephones otherwise known as the Message rate system.

As explained in the Addendum to the President's speech, operational surpluses of the S.T.B. average only $12 million a year on existing rentals. Not all of the balance of $160 million for development can be borrowed, so it will be necessary for the S.T.B, to increase its rentals.

The S.T.B, has the problem of finding adequate finance to meet its large five-year development programme for 197l-75 amounting to $212 million. So far, the World Bank has agreed to assist with a loan of $33 million or just over 15 per cent of total development.

Various alternatives of raising revenue equitably are under consideration by the SIB. The Message rate is one of the methods.

In advanced countries the method of charging is related to frequency of calls as well as the length of each call. It can be made fairer still by charging less for calls during off-peak hours, as in the case of trunk calls.

Unfortunately, we have not yet achieved that degree of sophistication in our equipment, nor do we have as yet professional expertise to maintain such equipment. Within five to 10 years we hope to achieve this. Then people will pay in accordance with the load they put on the telephone network. This will help to cut out jams on Saturday mornings and race days, besides making the charges fairer.

Meanwhile, it has been decided that the annual telephone rentals of residential and business Direct Exchange Lines he increased from $180 to $200 and from $250 to $300 respectively with effect from 1st October, 1971.

Mr Low Yong Nguan (Crawford): Mr Speaker, Sir, it looks like the Message rate system will not be introduced for some time to come.

Sir, I have a few supplementary questions to ask. First, will the Minister consider issuing public bonds by tile S.T.B, to meet part of the development cost? Second, will the Minister let the I-louse know whether tile new rates are final and that there are no grounds for further negotiation, or will he consult business organisations before finalising tile rates? Lastly, has his Ministry done any evaluation on the new rates and, if so, how do they compare with the charges under the Message late system as practised, say, in a country like Malaysia?

Mr Yong Nyuk Lin: Mr Speaker, Sir, I will attempt to reply to the three supplementary questions. First, whether there will be more public telephones to be installed. We already have no less than 2,000 public telephones at ten cents per call, and we have another 2,000 in hand which will he made available to the public soon, and we intend to increase the number of public telephones in Singapore.

As regards the second supplementary question. whether the increased rentals with effect from 1st October, 1971 will be final. The answer is that they are final and there will be no further negotiation or discussions with interested groups.

Thirdly whether evaluation has been made on the proposed increased rentals with effect from October of this year, I can say that the new telephone rentals, even with the prevailing Government tax of 15 per cent, will compare favourably with telephone rentals now charged in West Malaysia. We have not made any attempt to find out what goes on in East Malaysia because a sea of about 800 miles separates the two countries. So I think we can only talk about West Malaysia where it is possible for us to have subscriber direct dialling service available to those in Singapore. As regards charges in West Malaysia subscribers do pay annual rentals of $204 for a residential telephone and $360 for a business telephone. They also pay, in addition, a surcharge of ten cents a call after the first one hundred calls. Furthermore, residential subscribers are also required to deposit $75 while the deposit required for a business subscriber ranges from $200 to $500.

Mr Low Yong Nguan: I am satisfied with the answers to the last two questions. Sir, but perhaps the Minister has missed my first question. It is whether either his Ministry or the S.T.B. will consider issuing public bonds to meet part of the development cost.

Mr Yong Nyuk Lin: I am sorry if my ears have failed to catch the words "public bonds". I thought I heard "public telephones". Nevertheless. I did say earlier that various alternatives of raising revenue equitably are under consideration by the Singapore Telephone Board. Therefore, the issuance of public bonds will be considered.

Tuan Haji Mohd. Ariff Bin Suradi (Kampong Kembangan): Mr Speaker. Sir, is the Minister aware that many telephone subscribers are dissatisfied with the S.T.B, billing system which has led to a temporary disconnection of their lines recently? Also, is the payment of $5.75 for re-connection justifiable?

Mr Speaker: Is the Minister prepared to answer that supplementary question which is riot quite related to the original question?

Mr Yong Nyuk Lin: Mr Speaker. Sir, it does not appear to be an extension of the original question. However considering the fact that the Member for Kampong Kembangan happens to work in the Singapore Telephone Board, he has therefore much more inside information than 1 have. To his first supplementary question whether I am aware of any dissatisfaction. I must say that I am not aware of that. Now that he has brought it to my notice, I will request the management of the S.T.B, to look further into the question to removes the grievances, if any.