CLOSURE OF MULTI-REVENUE COLLECTION CENTRES

Mr J.B. Jeyaretnam asked the Minister for Finance if he will say what savings have resulted to the revenue by the closing down of Multi-Revenue Collection Centres and whether the savings more than balance the inconvenience and hardship that have been caused to many people by the closing down of such centres.

Dr Richard Hu Tsu Tau: The Government's decision to phase out the Multi-Revenue Collection (MRC) centres and other cash payment counters stems from the need to reduce manpower and increase productivity. The quantifiable savings from the closure of the 19 MRC centres are estimated at $710,000 per annum. More important, however, are the savings to the public.

Rather than travelling to such centres and queuing up to pay bills, workers can spend their time more productively, whether in their workplaces or in their homes. Imputed savings on travelling and queuing time by the public, if they switch over to a cashless means of payment for just four bills, viz Income Tax, Property Tax, Public Utilities Board and Telecom bills, are estimated at $6 million per annum.

The Government has, at the same time, tried to minimise the inconvenience to the public by the following measures:

(a) MRC centres were closed in stages. In February 1986, only five of the 19 counters were closed. In July 1986, another seven were closed. The remaining seven will be closed only in January 1987.

(b) Care is taken to structure the closure of the centres such that those in the central business district (CBD) were closed first, followed by those on the fringe of the CBD. The centres in the outlying areas will be closed last.

(c) A three-month publicity campaign beginning in March 1985 was conducted to inform the public of the merits and rationale of cashless transactions. Various media of communication were employed. These include mobile exhibitions, TV and Radio advertisements, bus panel posters and advertisements in various publications. It was supplemented by an instructional publicity campaign at the end of 1985, outlining in some detail the cashless alternatives available and how to effect such payments.

(d) Payment of the common Government bills can now be effected through GIRO, Interbank GIRO, telephone banking, and Electronic Funds Transfer at Point of Sale cards.