PORT OF SINGAPORE AUTHORITY WHARVES AT TANJONG PAGAR (Reduction in usage and effects)

[Mr Speaker in the Chair]

Mr N. Govindasamy asked the Minister for Communications if he will ascertain from the Port of Singapore Authority (a) in respect of the Authority's wharves at Tanjong Pagar, for the first quarter of 1972 and the corresponding period of 1971 -

(i) the aggregate number and tonnage of vessels that were berthed at those wharves;

(ii) the aggregate tonnage of cargo loaded on and off the vessels so berthed;

(iii) the aggregate revenue of the Authority arising from the berthing of the vessels and the handling of cargo loaded on and off the vessels: and

(iv) the aggregate number of man-days put in by the Authority's employees in relation to the berthing of the vessels and the handling of cargo loaded on and off the vessels; and

(b) the explanation for the reduction in the usage of the Authority's wharves at Tanjong Pagar; and whether the Authority is taking any steps to rectify the loss of potential revenue to the Authority and to alleviate the hardship of the Authority's employees who have suffered a reduction in take-home pay consequent upon the reduced usage of those wharves.

The Acting Minister for Communications (Dr Toh Chin Chye): The take-home pay of Port of Singapore Authority workers for the first quarter of 1972 was affected slightly. The cause is partly because of the new tariffs. However, there are other factors such as the decline in trade between Japan and the United States with the rest of the world. The PSA is watching the position closely and will take every measure to ensure that no hardship will be caused to its workers.

(a) In respect of the PSA wharves at Tanjong Pagar for the first quarter of 1972 and the corresponding period of 1971:-

(i) 999 ships with a tonnage of 3.79 million NRT were berthed in 1972, as compared with 1,032 ships with 3.54 million NRT for the same period in 1971;

(ii) 2.31 million tonnes of cargo (including general, fuel and bulk) were loaded on and off these vessels in 1972, as compared with 2.53 million tonnes for the same period in 1971;

(iii) total revenue, including port dues, pilot age and dock dues, wharf labour revenue, storage rent, wharf age and other revenues connected with these ships and cargo handled amounted to $34.39 million for the period January to March 1972, as compared with $24.229 million for the same period in 1971;

(iv) PSA figures for work done by its employees at the wharf are not kept in terms of man-days but in terms of gang-hours. For the first quarter of 1972 the total gang-hours worked amounted to 99,530, as compared with 131,949 for the same period in 1971.

(b) The reduction in the usage of the PSA wharves at Tanjong Pagar is one of the objectives of the new tariffs introduced with effect from 1st January, 1972. The new tariffs ensured that there will be more effective utilisation of the wharves, less congestion, quicker working of cargoes and more expeditious turn-round time of ships. Average turn-round time per vessel dropped from 49X hours in 1971 to 39 hours in 1972. Average waiting time for a berth dropped from five hours in 1971 to one and a quarter hours in 1972. These are being achieved with no loss in revenue at all.

Mr N. Govindasamy (Telok Blangah): From the answer, it is obvious that there is a reduction in workload resulting in a reduction in take-home pay. Sir, can the Minister tell the House what concrete steps has the PSA taken to alleviate this hardship arising out of the reduction in the take-home pay? Also as a result of the reduction of workload, will there be any redundancy in PSA amongst the employees?

Dr Toh Chin Chye: Mr Speaker, Sir, there has been no reduction at all in take-home pay because of the improved productivity. What has happened, of course, is that the port workers earn a full month's wages for working 19 to 20 days of the month, and for the rest of the month they go on holiday. I think this is the reason for the impression that there has been a reduced workload at the port. However, since 1964 the PSA has guaranteed its daily-rated port workers a monthly minimum earning computed under an arithmetical formula of 26 times the sum of the individual worker's daily basic salary, plus his cost of living allowance, average shift allowance payable, plus 30 times his daily housing allowance. This minimum earning does not include any incentive bonus payment, which is dependent on productivity.

I would like to add this further information to assure the Member for Telok Blangah that the integrated gang labour during the first quarter of this year had an average of 25 days' work, and most of them earned either more or less than what they earned last year. For the period January to March 1972, as compared with the same period for 1971, out of a total of 2,122 integrated gang labourers, 1,376 had increased earnings whilst 746 had decreased earnings. The port and shipping industry is an industry in which there can be no consistent level of work. On some days, more work is performed above the average requirements, while on other days there are shortfalls. It is for this reason that the PSA has resorted to a pool of casual labour who could be asked to supplement the normal labour force on those occasions when the demand for labour exceeds the supply, and who also act as substitutes for permanent labourers who are on leave or absent.

Casual labourers consist of unemployed workers registered with the Ministry of Labour and also with the Pont Authority. The registration of these casual labourers does not imply that the PSA will automatically offer them work daily. But on those days when the casual labourers report and offer themselves for work and should there be no work, a payment of $1 is made to each worker so as to assist him to recover his travelling expenses. The present poo1 of casual labourers has been on the register since February 1971. The total number is about 424 as at the end of March 1972.

During the first quarter of 1972, no casual labourer has less than 14 days' work in a month. In fact, casual labourers have an average of 19 days' work per month. However, it is the policy of the Port Authority to gradually ease out the pool of casual labourers into the general labour pool, and this should be so particularly at this moment when there is a shortage of labour in Singapore, and it is important that we should not keep such a large pool of casual labour around the port. But after consultation with representatives on the Board, we have agreed that the pool should be eased off gradually so as to enable the casual labourers to re-adjust themselves to another form of work.

What I have said, Mr Speaker, points out the fact that the improved methods which have been adopted at the Port have increased productivity, and the fact that the average worker is earning a month's salary in half the time that he used to do should ordinarily be regarded as a boom to the industry. But it is unfortunate that at this period when there is a recession in world trade, particularly between Japan and the United States, the slack or the leisure time which should have been occupied in fruitful work has not been made available. I am afraid the Port Authority is not responsible for this, as it is not in control of the world economic situation. However, I would like to assure the Member for Telok Blangah that no gang labour registered with the Port Authority will be regarded as redundant labour.

Mr N. Govindasamy: Just one more supplementary question, Sir, lf, by the increased output of the workers, they are able to earn 20 days' wages for work which they would normally perform in 16 days, as the Minister has said just now, would the PSA guarantee 26 days' wages as they had been promised, irrespective of the fact whether work is available for them or not? In respect of easing out casual labourers who are just staying behind and doing nothing, when is it going to take place?

Dr Toh Chin Chye: I have in my answer earlier, Mr Speaker, said that this has been going on since 1964, and the PSA has assured these daily-rated port workers a monthly minimum earning which has been computed 26 times the sum of the individual worker's basic salary, plus cost of living allowance, shift allowance, housing allowance, and so on. This is still going on.

Mr P. Govindaswamy (Anson): Sir, if the vessels are not berthed alongside the wharves, how can the labourer get more pay? So many vessels are in the outer roads discharging cargo by putting it into lighters which then take it to the wharves. Sir, will the Minister take action to see that no ship must be allowed to unload in outer roads, but must come alongside the wharves? Only then will the labourers get more work and more pay.

Dr Toh Chin Chye: Mr Speaker, the answer to the statement made by the Member for Anson is an English quotation which says that "You can take a horse to the water, but you cannot make him drink". The reason why the port worker earns more money is due to the increased tariffs, although there are even fewer number of ships coming in. I think that gives him the right answer.