HOUSEHOLD EXPENDITURE SURVEY AND CONSUMER PRICE INDEX

Mr Low Thia Khiang asked the Minister for Trade and Industry whether the new Household Expenditure Survey has been completed and when the new Consumer Price Index based on household income groups as proposed by the Cost Review Committee will be implemented.

Mr Goh Chee Wee (for the Minister for Trade and Industry): Mr Speaker, Sir, the latest Household Expenditure Survey has been completed. The Department of Statistics is now in the process of revising the items and the weighting pattern in the CPI basket to incorporate the survey results. The new CPI for the overall population will be released in March this year. Separate CPIs for the lowest 20%, middle 60% and highest 20% of the population, based on household income, will be released in July.

Mr Low Thia Khiang: Sir, when was the data collection of the Household Expenditure Survey completed?

Mr Goh Chee Wee: The survey was conducted over the period October 1992 to September 1993.

Mr Low Thia Khiang: When was the data collection completed?

Mr Goh Chee Wee: The data collection was completed in September 1993.

Mr Low Thia Khiang: Why did it take so long for the Department of Statistics to compile the data? Would it not be better if the new CPIs were implemented before April 1994 to reflect the effect of GST?

Mr Goh Chee Wee: The Household Expenditure Survey is a very comprehensive and detailed survey of expenditure patterns. Every member of the Household in the Expenditure Survey has to record down in detail, the items he purchased, how much he paid for it, and so on. So there is a large volume of data involved and therefore the Department of Statistics has taken some time to compile, analyse, and complete the survey.

Mr Low Thia Khiang: The Minister of State mentioned that the data collection was completed in September 1993. So from September 1993 to April 1994, when the GST came into force, you have about six months. Why can you not do it?

Mr Goh Chee Wee: In as far as the collection of data for determining the CPI is concerned, a main objective of the Household Expenditure Survey is to update the basis for computing the CPI for the subsequent years, in fact, for the next five years until the next Household Expenditure Survey. In as far as inflation is concerned, the Member would note that last year the Department of Statistics was actually very heavily involved in monitoring the price increases of consumer goods and hawker food, for instance, consequent on the implementation of GST. So such information was available. 3.00 pm

Mr Speaker: Order. End of Question time.

[Pursuant to Standing Order No. 21 (3), Questions Nos. 10 to 14 have been postponed to the next available sitting of Parliament.]