ANTI-INFLATIONARY COMMITTEE (Powers and functions)

Mr J. F. Conceicao asked the Minister for Finance who are the members of the anti-inflationary committee formed within his Ministry; what are the powers and functions of this committee; what sums of money have been set aside for this committee's use; what this committee has done since its inception; and how many members of the public make representations to this committee.

Mr Hon Sui Sen: Mr Speaker, Sir, the Ministry of Finance Anti-Inflationary Committee is headed by my Permanent Secretary (Development Division). The other members of this Committee are officers drawn from the Development Division, the Department of Trade, the Economic Development Board and the Monetary Authority of Singapore.

The Committee can take action against blatant acts of profiteering under powers conferred by the Control of Essential Supplies Act and the Price Control Act, as well as other legislation.

The Committee's main functions are, first, to watch closely price increases, particularly in essential commodities and, second, to plan and take measures to keep down inflation.

There is no need for any special sum to be set aside for the use of the Committee, as any expenditure can be covered by ordinary Ministry and Departmental votes in the Estimates. If necessary, these votes can be supplemented.

The Committee has already taken a number of measures to dampen rising prices. It has increased interest rates on deposits and loans so that some of the excess money can be withdrawn from circulation and the purchasing power which is pushing up prices is reduced. It has trimmed increases in Government recurrent expenditure, where possible. It has removed and/or reduced import tariffs to lower costs to importers and prices to consumers. It has taken steps to diversify the sources of supply of essential imports, ensuring more stable supplies at lower costs.

Under the Committee's guidance, the Department of Trade has been conducting regular inspections to prevent trade malpractices. In the case of two bakeries giving short-weight bread, it has subjected them to public exposure and obloquy. It has supplied the daily list of quoted prices of essential commodities as a service to consumers who can compare the prices they are paying against those quoted and, therefore, avoid further exploitation by unscrupulous traders. Efforts are continually being made to consolidate the anti-profiteering programme of the Committee. After the warning phase, the Committee will move next to punitive action in prosecution or cancellation of licences or restrictions in supplies.

Members of the public can make representations to the Committee through the Department of Trade. In fact, about 200 to 300 members of the public have been approaching this Department daily seeking advice on prices and availability of supply of essential commodities or furnishing information on profiteering activities of traders. The Department also deals with complaints addressed by members of the public to the Consumers' Association of Singapore (CASE), and passed on to it for necessary action.

Mr Ivan Baptist: Sir, can the Minister tell us when this Committee was first formed?

Mr Hon Sui Sen: Sir, I am not able to tell the Member the exact date, but it was formed probably in the middle of last year.

Mr Sia Khoon Seong (Moulmein): Sir, in order to make this Committee more effective and more representative, will the Minister consider expanding this Committee to include representatives from interested parties, like CASE, and possibly Members of this House, such as the Members for Katong and Potong Pasir?

Mr Hon Sui Sen: Mr Speaker, Sir, if they feel that they can make some contribution, we would be prepared to co-opt them on matters in which we think they would be of help. But generally some of the measures which are being discussed may relate to legislation or may relate, in the case of measures for control of money supply, to what may be confidential until they are made public. I do not think it would be possible in all cases to bring them into this Committee.