DISCONTINUANCE OF MRCS (Implications)

Dr S. Vasoo asked the Minister for Finance whether he will review the implications of the discontinuance of the multi-revenue collection service and consider introducing the service in New Towns where there is pressing need for such a service.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Deputy Speaker, Sir, as I have explained to the House previously, the Government decided to phase out the multi-revenue collection centres because cash payments and cash collections are by and large unproductive. Therefore, the Government would like to encourage cashless payments so that the public need not waste time queuing up to pay bills.

The Government was aware that the decision might cause some inconvenience to the public. Hence, alternative cashless means of payment have been provided and actively promoted. These include GIRO, Interbank GIRO, telephone banking, Electronic Funds Transfer at Point of Sale and payment through ATMs. Publicity campaigns were also conducted in 1985 through exhibitions, mass media and advertisements to educate the public on the use of these alternative means of payment.

The closing of the multi-revenue collection centres was done in three phases, beginning in February 1986 when five were closed. Another seven ceased operation in July 1986 and, finally, the remaining seven were closed in January 1987.

Overall, I am satisfied with the measures taken to minimize inconvenience to the public arising from the closure of the multi-revenue collection centres. To re- introduce this service in new towns would be a regressive step and I do not propose to do so.

Dr S. Vasoo (Bo Wen): Sir, is the Minister aware that there are quite a number of people who cannot go on to the cashless system? And in their interest, what positive steps will be taken to cater to their needs?

Dr Richard Hu Tsu Tau: Mr Deputy Speaker, Sir, I am aware that there will be some people, particularly the low-income group, who might find it difficult to have bank accounts. But I think the objective should still be to try and encourage everyone to have an account with the POSB, for example.

The Member may not be aware that of the six major billing organizations, it has never been possible to collect bills through the multi-revenue collection system in four of them. And these are PUB, HDB, Telecoms and SBC. The two other major bill collecting bodies are the Income Tax and Property Tax Departments and these, by and large, do not involve people in the lower-income groups.

The multi-revenue collection centres' activities were centred around income tax, property tax, hospital bills, road tax, renewal of certificates of registration of businesses, ambulance service bills, TOLs, parking and traffic offences. By and large, I believe that the majority of these activities do not involve the very low-income groups.