Parliamentary Snapshots (Monday 26 May)

May 27, 2008 by admin
Filed under: Parliament

Trade Minister Lim says not useful to tweak GST rate in short term

Singapore’s exchange rate policy has helped dampen the effects of inflation while providing support for sustainable economic growth, according to Trade and Industry Minister, Lim Hng Kiang. He said that although global food prices surged 50 per cent between January 2007 and March 2008, the domestic cost of food imports rose at a slower 14 per cent. However, he also acknowledged that inflation is unlikely to fall to previous levels.

Worker’s Party MP Low Thia Khiang asked if taxes (GST) could be cut to ease inflationary pressure.

Mr Lim replied: “Our approach is aimed at the medium term. The GST adjustments that we put in are necessary to have a better balance between direct tax and indirect tax. Therefore, I don’t think it’s useful for us to tweak the GST tax rate in response to a short term phenomena, which is the cost increases that we face.”

EDITOR’s COMMENT: WP’s Low Thia Khiang has made a valid and economically sound suggestion, but as usual Mr Lim Hng Kiang has brushed it off frivolously.

First, Mr Lim says that inflation is not likely to fall to previous levels. Why then is he claiming that the increase in prices is a SHORT TERM phenomena? This is a blatant contradiction.

Since Mr Lim has said that the PAP’s approach is aimed at the medium term, then all the more GST for essential items like basic food stuffs must be cut or even eliminated to help the poor cope with the escalating inflationary pressures.

A cut in GST for essential food items is not a subsidy that will result in welfarism. I hope the PAP will one day get this fact straight.

Study on retrofitting seat belts in small buses to be ready in 3-6 mths

A study on how best to retrofit effective seat belts in existing small buses will be ready in three to six months. However, Members of Parliament on Monday pressed the Land Transport Authority (LTA) for quicker installation of seat belts on such buses.

A few MPs argued that there should be interim measures to prevent any other tragedy, and costs should not be an issue.

Cynthia Phua, MP, Aljunied GRC, said: “The cornerstone of all these argument is safety and time doesn’t permit you to delay the installation. So can the minister give us a specific date – when will the three-point or even a temporary measure like the two-point seat belt be implemented for the existing buses?”

Lee Bee Wah, MP, Ang Mo Kio GRC, asked: “What is the ministry’s plan if bus operators want to pass the costs of installing seat belts to the parents? I read some of their responses in newspapers… they said that they will increase the bus fare to as much as 50 percent. Is this increase justifiable?”

She added: “I’m quite disturbed about the response from the bus operators. Whenever we talk about safety, they talk about costs.” EDITOR’s COMMENT: Well said!

“And currently, LTA allows them to carry three students on (seats) which are meant for two students when it installs seat belts. So does it compromise the safety aspect?”

Tags: