CONSUMERS ASSOCIATION OF SINGAPORE (Effectiveness of)

Mr Chew Heng Ching asked the Minister for Trade and Industry whether the Consumers Association of Singapore (CASE) is still needed; and, if so, whether his Ministry has any plans to ensure that CASE continues to play an effective role in safeguarding consumer interests.

The Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, the Consumers Association of Singapore (CASE) is a private association formed to protect consumer interests. Such private consumer groups can educate consumers, inform them where to get the best value for money, and take up on their behalf issues of product safety, truth in advertising or profiteering.

These are useful functions which enable our consumers to get a fair deal, and also help to keep down the cost of living. The best measure of how well CASE is fulfilling these needs is how much its services are in demand, and how willing its members are to support and pay for its activities.

The Government supports these objectives of CASE. As a token of this support, MTI gives CASE a small annual subsidy to cover part of its operating expenses. This year, the grant is $110,000. However, CASE must earn the bulk of its revenues itself: from members' annual subscriptions, from its product and information services, and also from services provided to other institutions, for example, handling tourist complaints for STPB. The Government cannot underwrite the difference between CASE's expenses and its revenues from other sources, much less fund all of the Association's needs.

Previously, the Government grant was tied to specific projects. This was unsatisfactory as much of CASE's expenditure is recurrent. MTI has reviewed the system, and decided to raise the grant to $130,000 for FY 90, ie, next year.

The Government is prepared to continue assisting CASE through this annual grant so long as CASE's own members support its activities. I believe CASE itself recognizes this. Its latest Annual Report (1988/89) states:

"As CASE is a membership organisation, it can only function effectively with the active support of consumers."