Re: WP Doing Nothing?
[h=2]Parliament Highlights – The Budget Debate 2013
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The Workers' Party on Friday, March 8, 2013 at 2:48pm ·
Here are some highlights from Workers' Party MPs' speeches during the Budget debate in Parliament on 5-6 March 2013.
Ms Sylvia Lim, MP for Aljunied GRC
A more progressive tax system:
“What would be the benefits of making our tax system even more progressive? Besides the benefit of mitigating inequalities through re-distribution, having a more progressive tax system is symbolically and psychologically important at the national level. It signifies that Singaporeans are journeying together as one people towards the future, with the stronger helping the weaker.”
"It has been noted by several economists that there is room for further tiering above the $320,000 threshold, as the current tiering catches a wide range of income earners in this top bracket – ranging from a university professor who just makes it to this bracket and a banker who earns millions of dollars a year. I understand that this cut-off of $320,000 has not been adjusted for around a decade, while in the meantime, incomes at the higher ends have soared. There is clearly scope to have more tiers and higher rates, say up to 25%, for those who earn above certain higher thresholds. For instance, those earning above $320,000 and up to $500,000 could continue to be taxed at 20%, those earning between $500,000 to $700,000 at 22%; between $700,000 to $1m at 24%, and above $1m - 25%. Even at a maximum income tax rate of say 25%, such a top rate would still be low globally. While some may argue that such a move might reduce our attractiveness as a destination to high-earners, I believe Singapore would still have major selling points to them, such as the ease of doing business and low corporate tax rates."
Read Ms Lim's full speech here:
http://wp.sg/2013/03/budget-2013-speech-mp-sylvia-lim/
Mr Png Eng Huat, MP for Hougang SMC
The plight of low wage workers:
"While the budget has addressed the issue of saving more for retirement for low wage workers by increasing their CPF contribution rates, it has not addressed much on containing the rising cost of living. With rising income, low wage workers living in rental flats will also see a corresponding increase in rental rates.”
“Take the example of the 45-year old low wage worker again. If his employer decides to adopt the NWC Guidelines for 2012/2013 to give a $50 wage increase to those earning up to $1,000, his salary will be $850 a month. But unfortunately, if he is living in a 1-room rental flat, his rent will also go up by at least $57 from $33 a month to $90 a month. The entire net increase of $40 in his take home pay is not even enough to service his new rental."
"We must also bear in mind this low wage worker is taking home less pay now because his CPF contribution rate has been revised from 17 to 20 per cent. Factoring in the $70 from his maximum WIS payoutand the subsequent increase in rental, he is better off forgoing the NWC recommended wage increase because he will end up $17 poorer every month.
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"The 2.7 times jump in the published rental from $33 to $90 a month for someone whose salary crosses the $800 mark is just too drastic to begin with. I urge the Ministry to look into this and come up with a more reasonable tier so that low wage workers living in rental flats can truly appreciate the benefits of Budget 2013 and any wage increments that come with it. This is the least the government can do for these Singaporeans to make up for those lost years of their working lives earning meagre salaries while helping Singapore to grow."
Read Mr Png’s full speech here:
http://wp.sg/2013/03/budget-2013-speech-mp-png-eng-huat/
Mr Yee Jenn Jong, NCMP
Industry consolidation:
“In the context of my restructuring experience, survivors changed business processes to become lean. By reducing labour input while maintaining the same financial output, there will be productivity gains. But more critically, to make quantum leaps in productivity, financial output has to be significantly increased without corresponding increase in workforce. This can be done either by expanding the current market or modifying business models to gain new revenue sources or by merger and acquisition. “
"In fragmented industries where there are too many companies chasing the market, it makes sense to consolidate. Merger and acquisition done strategically could boost revenues or result in greater manpower efficiency. In Budget 2010, the government implemented the mergers and acquisitions, or M&A scheme. The scheme is hardly attractive as it allows M&A allowance of 5% of the value of acquisition as tax allowance. Budget 2012 provided for 200% tax allowance on transaction costs. Transaction costs cover professional fees, legal fees and valuation fees. These two provisions benefit mainly large transactions. To encourage M&A activities amongst SMEs, we need the scheme to be more targeted. The M&A scheme could be graduated to allow higher allowances for smaller SME consolidation and M&A transactions. For example allowance could be 30% for deal size of $500,000 or below, another scale at $1 million, and a further lower rate at say $5 million. This would cover the typical deal size for acquisition of smaller SMEs. The current scheme allows only for outright purchase of shares. Many acquirers prefer to buy over operations and businesses of SMEs, but not the entire company as they do not wish to be entangled with liabilities that may be associated with the target company. We can loosen the definition of M&A to include such type of acquisitions."
Read Mr Yee's full speech here:
http://wp.sg/2013/03/budget-2013-speech-by-ncmp-yee-jenn-jong/
Mr Gerald Giam, NCMP
Helping SMEs hire more Singaporeans:
"To help SMEs hire more Singaporeans, I would like to propose that the government provide a temporary wage subsidy for SMEs to hire economically inactive and out-of-work Singaporeans. These include homemakers, the unemployed, and some senior citizens and persons with disabilities. This subsidy should be in addition to the existing Special Employment Credit for persons with disabilities and older workers."
"I will call this the “New Hire Wage Credit” scheme. It could pay for one-quarter of the first six months’ salary of each new hire and should be available for the next three years. The New Hire Wage Credit would be available to workers earning less than $4,000 per month or the equivalent in part-time pay, and only SMEs should benefit from it. Companies would only be able to claim the New Hire Wage Credit for a particular position once, and for new hires who have not benefited from the scheme in previous jobs. This would encourage the SME to put in place good HR practices that help retain the staff, and the new hire to stay on the job longer. In addition, to prevent workers from changing jobs just to take advantage of this scheme, companies would only be eligible to claim under this scheme if they hire someone who has been unemployed for at least the last four months."
"With this scheme, SMEs will firstly be able to attract more Singaporeans by offering a higher starting pay. This will help to meet SMEs’ current manpower needs without having to increase the overall foreign worker headcount. Secondly, it will help increase the resident labour force participation rate (LFPR) by increasing the opportunity costs of not working. And thirdly, it will help unemployed Singaporeans to secure jobs."
Read Mr Giam's full speech here:
http://wp.sg/2013/03/budget-2013-speech-ncmp-gerald-giam/
Mr Muhamad Faisal bin Abdul Manap, MP for Aljunied GRC
Provision of Kindergarten Financial Assistance for families in need:
“In his written answer, the Minister pointed out that there are currently about 240 kindergartens where families can apply for KiFAS (Kindergarten Financial Assistance Scheme). At the same time, it is a known fact that PCF kindergartens are eligible for KIFAS. Incidentally, a quick check on the PCF website would indicate that there are 247 PCF kindergartens in Singapore."
"We must understand the various considerations a parent has in enrolling his/ her child in a preschool. Among the many factors are proximity and the environment provided by the school. Some parents may for convenience sake choose to send their child to a non-PCF kindergarten. For example, in my Kaki Bukit ward, some parents who are unable to obtain a placement at a PCF Kindgarten at Block 519, Bedok North Avenue 1 would have to send their child to a non-PCF kindergarten. Parents would also like to have their children receive their education in their preferred environment in accordance to their beliefs and values. As such, there are parents who send their children to kindergartens run and managed by religious organisations or religious based voluntary welfare organisations."
"My view is simple and I hope that KiFAS can be expanded to all families who are in need. It should be about providing assistance in accordance to economic needs rather than in accordance to one’s choice of kindergartens. KiFAS should be made available to all students who require it and should not be limited solely to the 247 PCF kindergartens."
Read Mr Faisal’s full speech here:
http://wp.sg/2013/03/budget-2013-speech-mp-muhamad-faisal-bin-abdul-manap/
Ms Lee Li Lian, MP for Punggol East SMC
Building stronger and sustainable families
“Today, families with dependents – those with young children, or those supporting disabled or elderly relatives, face many challenges that need to be addressed. With today’s costs of living, it is a necessity for both parents to work in order to support the family. At the same time, these families require someone to be able to be at home, caring for dependents. Caregiving is a role that is often understated and goes unnoticed in society, yet it is a job that requires a huge amount of dedication and sacrifice, particularly when it comes to looking after the elderly and disabled. Sadly, despite being important pillar of strength for the family and playing a valuable role in society, they do not get sufficient support despite the many personal sacrifices and reduced income that itself can take a toll on the family.”
"I welcome the budget’s initiative to reduce the Foreign Domestic Worker levy from $170 to $120. This will ease costs for many families in Singapore who currently hire domestic helpers. However, especially for families with young children, and those who are looking after the disabled or the elderly, having domestic help is a necessity. For such families it is not a matter of luxury but of pure need, and we should consider waiving the levy for them."
"According to a report in 2011, only 14% of caregivers currently receive support from domestic helpers. More affordable access to foreign domestic workers mean that more caregivers can get assistance and some respite from their responsibilities. This is also in the best interest of caregiver dependents as it reduces the risk of caregivers being burnt out. Caregivers with assistance from domestic helpers can also consider remaining employed either on a part-time or full-time basis. It is reported that 43% of women who are economically inactive have cited care giving and family responsibilities as reasons. Greater access to assistance could help a portion of these women return back to work. This benefits not just the caregiver, who may want to seek personal fulfilment through work, his or her dependent, and also the economy.”
Read Ms Lee's full speech here:
http://wp.sg/2013/03/budget-2013-speech-mp-lee-li-lian/
Mr Pritam Singh, MP for Aljunied GRC
On changes to the car ownership policy:
"If these changes were implemented to force Singaporeans to use public transport, the system as it stands, leaves much to be desired, particularly during peak hours. I am not sure what the effects of these latest changes to our car ownership policies will be, as there are differing views on the impact of the latest policy changes on COE prices and as a result, the price of cars. But the effect of the new LTV ratio is likely to felt most acutely by families with two or more children, those with elderly family members or the disabled who need the mobility provided by a car, but are unable to raise the down payment since a larger household size necessarily entails a lower disposable income set aside for the higher down payment required.”
“It would be helpful if the government could make the extension of such road tax grants permanent, especially for the mom-and-pop SMEs with a headcount of 5 or less when COE prices reach astronomically high levels, as they have been in the recent past for Cat C COEs. In addition, as some SMEs owners, particularly hawkers and sundry store owners work with narrow margins, it may be useful to look into allowing Cat C COE holders to extend their COE every 30 months (two and a half years) rather than every five years as the budget has announced. Such a move would allow for even greater flexibility for SMEs and also indirectly nudge SME owners to consider putting an older vehicle off the road since the decision making cycle on renewing a COE would be shorter.”
Read Mr Singh's full speech here:
http://wp.sg/2013/03/budget-2013-speech-mp-pritam-singh/