XN000022-1989-04-27 — Page 11

THURSDAY, APRIL 27, 1989

9

CONFLICTING PRESSURE FACING FS : JAMES TIEN

THE CONFLICTING PRESSURE OF HAVING ΤΟ CONTAIN INFLATION YET TO EMBARK ON LARGE-SCALE INFRASTRUCTURAL DEVELOPMENT PROJECTS A MAJOR PROBLEM WHICH THE FINANCIAL SECRETARY WOULD HAVE TO SORT THE HON JAMES TIEN SAID TODAY (THURSDAY).

AND

WAS

OUT,

IF WE WERE ALREADY EXPERIENCING A SEVERE OVERHEATING OF THE ECONOMY WHICH, THE FINANCIAL SECRETARY SAID, WAS MAINLY THE RESULT THE LABOUR SHORTAGE, HOW COULD WE CONSIDER INFRASTRUCTURAL PROJECTS IN THE VERY NEAR FUTURE, MR TIEN NOTED.

HE WAS

COUNCIL.

SPEAKING IN THE BUDGET DEBATE IN THE LEGISLATIVE

MR TIEN DISAGREED WITH THE FINANCIAL SECRETARY'S ARGUMENT THAT WE SHOULD NOT SPEND SIMPLY BECAUSE THERE WAS "A POT OF GOLD".

"BUT IF HE WILL NOT SPEND THESE SURPLUSES FOR FEAR OF EXACERBATING INFLATIONARY PRESSURE, WHY COLLECT THEM?" HE ASKED.

HE SAID THAT AFTER ALL, THE NUMBER OF TAX PAYERS WAS NOT UNDULY LARGE, AND THE MIDDLE INCOME GROUP CERTAINLY DESERVED A BETTER DEAL OVER TAXATION.

MR TIEN SAID HIS SUGGESTION TO THE FINANCIAL SECRETARY BE TO GO AHEAD AND SPEND THE "POT OF GOLD" ON THE AIRPORT AND MAJOR PROJECTS,

WOULD

OTHER

WITH

HOWEVER, IN ORDER TO CONTAIN INFLATION AND NOT TO COMPETE WORKERS IN THE PRIVATE SECTOR, THE GOVERNMENT SHOULD IMPORT CONSTRUCTION WORKERS, SKILLED OR UNSKILLED, TO DO THE JOB.

HE CALLED ON THE GOVERNMENT TO LOOK SERIOUSLY AT THE FOR THE IMPORTATION OF LABOUR.

PROPOSAL

HE SAID SINGAPORE HAD EMPLOYED SOME 150,000 OVERSEAS CONTRACT WORKERS, THUS RELIEVING ITS LABOUR SHORTAGE PROBLEM WITHOUT ANY ADVERSE SOCIAL AND ECONOMIC CONSEQUENCES.

HE NOTED THAT THE GARMENT INDUSTRY, FOR ONE, COULD NOT POSSIBLY AUTOMATE VERY MUCH FURTHER AND WAS IN NEED OF SKILLED LABOUR, AND BECAUSE OF MFA REQUIREMENTS, GARMENT MANUFACTURERS SIMPLY COULD NOT RELOCATE TO CHINA.

HE SAID THE INDUSTRY HAD ALREADY LOST 50,000 WORKERS IN THE PAST THREE YEARS AS A RESULT OF LABOUR SHORTAGE IN OTHER AREAS EMPLOYMENT.

"IN THE EVENT OF A FUTURE RECESSION, THIS INDUSTRY WILL NOT ABLE TO ABSORB WORKERS DISPLACED FROM SERVICE INDUSTRIES WHEN FACE HARD TIMES, HE WARNED.

OF

BE

THEY

/HE CALLED