PRICE INCREASES (Types and quanta implemented by Government departments and statutory boards before implementation of GST)

Mr Robert Chua Teck Chew asked the Minister for Finance what types and quanta of price increases affecting the public have been implemented by Government departments and statutory boards since the announcement of the Goods and Services Tax in his Budget Statement in 1993 and why these increases were allowed before the implementation of the GST on 1st April 1994.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, between February 1993, when GST was first announced, and the end of January this year, fee increases were implemented by six Government departments, institutions or statutory boards. These are listed in the Annex (Cols. 439 - 440) already distributed to hon. Members. Annex - FEE INCREASES BETWEEN FEBRUARY 1993 AND JANUARY 1994 (Cols. 439 - 440)

Fee increases are necessary when manpower, material or operating costs have risen significantly. The increases introduced since February last year were unrelated to GST.

Government's policy is to recover unavoidable manpower and material related cost increase through gradual and periodic fee increases in order to minimise their impact on inflation. Delaying such increases will only result in larger and more painful adjustments later on.

Mr Robert Chua Teck Chew (Nominated Member): With reference to the Annex, would the Minister assure the House that university fees will not be increased again this year since GST will be applied to university fees?

Dr Richard Hu Tsu Tau: University fees are outside my portfolio. But I will refer the Member's request to the Minister for Education.

Mr Robert Chua Teck Chew: Sir, with regard to item No. 6 in the Annex, I think there may be a mistake in the computation because car park charges were raised by about 12 1/2% during the year.

Dr Richard Hu Tsu Tau: Car park charges cover a range of increases. I do not know which particular one the Member is referring to.

Mr Robert Chua Teck Chew: It says "... car parks charges were raised by between 7 and 10%".

Dr Richard Hu Tsu Tau: Which one is 12%?

Mr Robert Chua Teck Chew: Actually it is 12 1/2% because the charges were raised from 40 cents to 45 cents and from 80 cents to 90 cents.

Dr Richard Hu Tsu Tau: These are the half-hourly and hourly charges. But item 6 probably refers to the season car park charges. The car park charges cover a range of increases. It is possible that one of the increases could be 12 1/2% and therefore what the Member says is true.