ONE-CENT COINS (Promotion on use)

Mr Koo Tsai Kee asked the Minister for Finance whether he will promote the use of one-cent coins by encouraging the Government to fix charges and fees to the nearest one cent.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, there is no need for Government to fix its fees and charges to the nearest one cent when GST is implemented on 1st April 1994. This is because Government rates will remain unchanged on 1st April 1994, notwithstanding that Government fees and charges will attract GST where similar supplies are or might be made by the private sector. Government's purpose in doing this is to facilitate the implementation of GST.

Government fees and charges are adjusted periodically to account for increase in costs. When changes become necessary, the increases are fixed by rounding down to the nearest 10 cents for ease of collection.

To allay public concern about excessive price increases and profiteering, retailers are encouraged to round off their prices to the nearest one cent. The Board of Commissioners of Currency, Singapore (BCCS) will increase the circulation of one-cent coins to meet additional demand.

Mr Koo Tsai Kee (Tanjong Pagar GRC): Sir, is the Minister aware that one-cent coins are not readily available in the market? When GST is implemented from 1st April onwards, there may be some problems in rounding down or rounding up to the nearest one-cent. My question to the Minister is: when and where will these one-cent coins be distributed around the island?

Dr Richard Hu Tsu Tau: The coins will be made available. You cannot physically distribute the coins to people unless they ask for it. They will be available to retailers who feel that there is a need for it.