WAGES (Erosion by profiteering)

Mr Hwang Soo Jin asked the Minister for Trade and Industry what steps are being taken to ensure that the wage-earners' take-home pay in real terms, taking into account the recent increment recommended by the National Wages Council, will not be eroded by excessive and unjustifiable price increases in goods and services.

Mr Hon Sui Sen (for the Minister for Trade and Industry): Mr Speaker, Sir, excessive and unjustifiable price increases in goods and services, i.e., profiteering, will occur when there is inadequate competition, short supply or inadequate market information. In general, we can ensure that the wage-earners' income is not eroded by profiteering by giving attention to several conditions. First, there should be genuine competition, without monopoly or cartel practices, especially in the production and sale of essential commodities like rice, sugar and wheat flour. Secondly, there should be adequate supply and, if possible, alternative sources of supply. Thirdly, the public should have sufficient knowledge of price and quality. Last but not least, the consumers must spend wisely and not excessively.

These are the basic principles guiding the Committee on Profiteering and Inflation in the Ministry of Trade and Industry. The work of the Committee is being stepped up. It is now monitoring very closely the prices and supply of essential commodities as well as some semi-essential commodities. If the situation warrants it, the Committee will establish an information system in the press and over radio and television to inform the public daily of the prices of common household consumption items such as rice, flour, bread, cooking oil, vegetables, fish and meat. The Committee will also work with INTRACO and other organisations to look always for cheaper sources of supply. It will study the market structure of relevant commodities to see whether there are cartel or monopolistic practices.

The Committee is working closely with organisations such as CASE and the NTUC Welcome and other Cooperatives in their efforts to curb profiteering and educate consumers.