COORDINATING COMMITTEE FOR CHARGES, TARIFFS, RENTALS AND FEES

The following question stood in the name of Mr Yeo Toon Chia -

Mr Yeo Toon Chia: To ask the Minister for Trade and Industry whether it is feasible to set up a coordinating committee to take charge of, and approve the raising of charges, tariffs, rentals and fees by the various Ministries, Government agencies and statutory boards to ensure Singapore's continued economic growth.

Mr Speaker: Mr Yeo Toon Chia.

Dr Vasoo: Question No. 7, Sir.

The Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, what the Member suggests is feasible and is being done.

There is a Ministerial Economic Committee which is chaired by the First Deputy Prime Minister. The members are the Second Deputy Prime Minister, the Ministers for Finance, Trade and Industry, Labour, Education and National Development. This Ministerial Committee coordinates the overall economic policy of the Government. They include the Ministers whose portfolios on policies have the most to do with the state of the economy.

In addition to this, all significant increases in charges, tariffs, rentals and fees by the various Ministries or statutory boards are cleared with the Ministry of Finance. MTI also monitors the cost of doing business in Singapore very closely. MTI has developed an index of unit business costs. The index includes wages and other labour costs like CPF, SDF, foreign worker's levy, Government and statutory board fees and charges, factory rentals, transport cost and other financial charges. It is a comprehensive index of the various costs of doing business in Singapore. Therefore, all changes in costs are automatically reflected in movments of the index. The index helps the Government to predict the effects of any proposed fee or tariff changes on the cost of business operations and to coordinate its policies in this respect.

Mr Chiam See Tong: Government departments are already supported by tax from the people. What is the rationale for charging tariffs and other charges when the public goes for a service in a Government Department?

BG Lee Hsien Loong: Sir, I do not know whether the question is relevant to the original one. But just to give an example of what we mean by tariffs and charges. When you buy electricity, you pay for it; when you use water from the tap you pay for it. When you rent land or factory building, you pay rent. I think that is fair.

Mr Chiam See Tong: I was not referring to some benefits that taxpayers get. I am referring to places like a police station. When a person goes to the police station to make a report he is asked to pay $10 for a search fee and $10 for his own report. These are the kinds of charges I am thinking of.

The Leader of the House (Mr Wong Kan Seng): Mr Speaker, Sir, I think this question is out of order.

Mr Speaker: Yes, I agree with you.