Article

6 November 2008

Tiered electricity tariff will benefit needy

I REFER to last Saturday’s reply by the Ministry of Trade and Industry, ‘Electricity prices: Why HK is cheaper’.

The tiered system I envisage for electricity is not one where the baseline tier is already set to recoup full cost, with a tax artificially imposed on excess consumption, as is the case for water. I mentioned the tiered charge for water to illustrate that differential charging is not new here.

The Hong Kong tiered charging system is a good reference point to crunch the numbers here to reduce bills for moderate household consumption. In Hong Kong, there are six progressive tiers of rates from the first 150 units, charged at baseline rate to the final tier of 1,001 units and above at baseline, plus 12 cents.

Here, the uniform rate for household consumption is 30.45 cents. The average electricity consumption per household varies but overall, it is about 300 units monthly.

Even if the provider needs to recoup the same total revenue, this can be achieved where the baseline consumption rate is significantly below 30.45 cents per unit while consumption in the subsequent tiers is charged at progressively higher rates. If one pegs the unit rates correctly, households consuming moderate quantities of electricity will be better off.

It should not increase prices for average households whose consumption does not exceed the baseline or lower tiers which should be below cost or at cost. Contrary to what the ministry stated, there would be an incentive to consume less so as not to cross to the higher tiers.

Such a system will return the benefits of saving electricity to the consumer through the cross subsidies, due to the differentiation in electricity charges.

A tiered tariff can assure everyone, regardless of household type, of affordable baseline consumption. The well-off are less likely to moderate their consumption and hence will pay for additional electricity at the higher rates.

Electricity is a modern necessity. We should get the pricing structure correct to prevent electricity becoming a heavy burden to households.

Finally, we should explore a mechanism to cushion the spikes in electricity tariff, which inflict sudden anxiety and impact on the cost of living. One possibility is what is done for public transport by way of a fuel equalisation fund, which public transport operators maintain to cushion the impact of volatile fuel prices so as not to pass them on to commuters.

Sylvia Lim (Ms)
Non-Constituency Member of Parliament

Webmaster’s note: This letter was published in the Straits Times forum on 6 Nov 2008.

Article

4 November 2008

分层计算法可将省电好处归还消费者

       贸易与工业部企业通讯司司长林美琴对我以分层式计算法收取电费的建议,在11月1日的《海峡时报》交流版刊登的答复中作出了回应。《联合早报》也于同日做了报道

  她认为如果我们用计算水费的分层式计算法来收取电费,国人将必须承担更高的电费。这是因为第一层用水收费就已经定在收回全部供水成本的水平。她也表示,如果采用收取低于成本的分层式计算法,将减少家庭用户节省用电的动机,还会造成浪费。

  我设想的分层式计算法,并不打算在第一层收回所有成本,并像对待水源的情况一样,对过度的消费征税,这一点在我的上一封信里应该很清楚。

  我认为香港收取电费的分层式计算法,是帮助我们考虑的很好参考,目的是帮助消费适中的家庭减少开销。

  根据消费的多少,香港目前的分层式计算法有6个累进的收费。比如,首150个单位是以最低层计算,接下来的150个单位,每单位是以最低层+2分计算。再接下来的200个单位,每单位是以最低层+4分计算。最高的一层即1001单位或更多,每单位的收费是最低层+12分。

  在新加坡,现行家庭用电的划一收费是每单位30.45分。每个家庭每月平均用电量按住屋的类别而有所不同,但大体上是每月大概300个单位。

  即使假设供应商必须从所有家庭收回全部成本,也可以通过一个最低层收费远比每单位30.45分低,但更高层消费收费逐步提高的分层式计算法来达到目的。如果单位的收费定得正确,只消费一般电力的家庭将能获得好处。对一般消费不超过最低层或者较低层的家庭,不应该增加收费。这类的收费应该低于成本或者只按成本收费,以鼓励家庭节省用电并减少所需缴交的电费。和贸工部所说的相反,家庭会受鼓励减少用电,以免进入另外一个收费层,必须支付更高的电费。

  这样一个分层式计算法的好处是,节省用电的好处可以通过不同收费所带来的交叉补贴归还给消费者。我们目前收取水费的制度,好处是归供应商或者政府。

  分层式计算法可以确保每个人,不论住屋类别,都可以负担得起最低层的收费。富裕的人比较不可能减少用电,所以必须缴交比较高的费用来使用更多的电力。

  用电是现代社会不可或缺的,所以价格结构应该反映这项资源的重要性。政府已经决定为住家用户开放电力市场,所以确保正确的价格结构是很重要的,以防止用电成为家庭的严重负担。

      最后,我们也需要探讨一个可以缓和电费上涨对家庭和生活成本所造成的冲击的机制。一个可能的模式是公共交通业者必须维持的汽油均摊基金。基金可以缓冲汽油价格激增时所造成的冲击,避免通过提高车资的方式把它转嫁给乘客。

非选区议员
林瑞莲

 

按:这篇文章刊登于2008年11月4日的《联合早报》

Article

30 October 2008

Consider tiered charge in electricity tariff

I REFER to Monday’s letter by Mr Paul Chan, ‘Electricity prices: 82% higher here than in Hong Kong’. Mr Chan’s query about the price of electricity in Hong Kong and Singapore is partly answered by the fact that Hong Kong produces electricity largely from coal, and hence the impact of volatile fuel prices is not as amplified as it is here.

However, the unanswered part which the Singapore authorities should seriously consider is that Hong Kong has a system of tiered charging for electricity based on consumption.

Thus, for the first 150 units of electricity consumed, the rate is about $18. Progressively as consumption increases, the tariff rate goes up, so those who consume more electricity pay for additional units at a higher rate.

Such a tiered charging system has several benefits:

 It ensures there is a humane rate for baseline consumption, while those who can afford it can consume more; 

 At the same time, it is green - encouraging everyone to save electricity so as not to cross to the next tier and be charged at a higher rate.Indeed, tiered charging is already in place in Singapore for water.

At the parliamentary sitting on Oct 21, I raised this suggestion which the Ministry of Trade and Industry seemed reluctant to pursue.

The other issue alluded to by Mr Chan is the lack of transparency surrounding the tariff formula.

At the same sitting, I asked whether the electricity tariff formula was a state secret and if the full details of the formula would be published. The answer was that the Energy Market Authority would be happy to oblige, subject to considerations of commercial confidentiality.

Electricity prices have risen more than 50 per cent since January last year and have doubled since January 2004. We await the ministry’s response.

Sylvia Lim (Ms)
Non-Constituency Member of Parliament

Webmaster’s note: This letter was published in the Straits Times forum on 30 Oct 2008.

Press Statement / Release

22 October 2008

Press Statement from Low Thia Khiang, MP for Hougang

I note that some investors of the structured deposit linked to Lehman Brothers are contemplating a class action suit against the financial institutions (FIs) concerned, despite MAS’ advice to lodge their complaints with the individual FIs, and then with the Financial Industry Disputes Resolution Centre or Fidrec which will now hear cases involving $50,000 or more. I am concerned that such investors may end up paying huge legal costs. In my view, seeking legal redress should only be resorted to if investors are unhappy with the ruling by Fidrec.

Many of these investors are uncertain and lack confidence in what the FIs will do with their complaints and whether they will be treated fairly, as inherently the FIs would also be concerned to protect their own interest.

I urge the MAS to issue a detailed standard guideline on how the individual FIs should handle the complaints and publish the process involved i.e. how the complaints will be classified, what possible outcomes investors can expect, as well as the procedure for further recourse to Fidrec should they disagree with the decision of the FIs.

MAS should also require the FIs and Fidrec to set a time frame for handling such cases before them, so that affected investors have some certainty to allay their anxieties and to decide at which point of time they should consider other options.

Low Thia Khiang
MP for Hougang
22 October 2008

Press Statement / Release

30 September 2008

Statement On The Passing Of Mr J. B. Jeyaretnam

The Workers’ Party is greatly saddened to hear of the passing of our immediate past Secretary-General, Mr Joshua Benjamin Jeyaretnam, early this morning. 

Mr Jeyaretnam’s commitment and contributions to public service are well-known.  

After leaving the Subordinate Court judiciary as District Judge and First Magistrate, he went into private law practice, where he represented many clients of limited means, particularly in cases of public interest.

In 1971 Mr Jeyaretnam rejuvenated the Workers’ Party by becoming its Secretary-General. He then led the Party to contest successive General Elections since 1972. In the 1981 Anson By-Election, his 6th electoral contest, the voters elected him as the sole opposition Member of Parliament, rupturing the ruling party’s total control of Parliament since Independence. He was re-elected in the 1984 General Election with an increased majority. Even though he was disqualified from office in 1986, he remained committed to the cause of democracy and empowerment of the people, contesting in the 1997 General Elections as part of the Workers’ Party team in Cheng San GRC, thereby becoming Non-Constituency Member of Parliament until 2001. 

Despite the difficult political environment under which the Workers’ Party operates, and bearing the brunt of the ruling party’s attacks as the Party’s Secretary-General, he led the Party through a number of crises and assured WP’s continuance on its political path.  

Throughout the decades, Mr Jeyaretnam has remained unflinching despite the many obstacles he faced and the sacrifices made by him and his family.   

The Workers’ Party mourns the passing of a giant in Singapore politics and sends its deepest condolences to Mr Jeyaretnam’s family on their bereavement. 

 

LOW THIA KHIANG
SECRETARY GENERAL
30 Sep 2008

News

1 July 2008

Conference of Organisers 2008

Workers’ Party held a Conference of Organisers on 29th June 2008 at the Party HQ and elected the following:

Sylvia Lim Swee Lian 林瑞莲
Low Thia Khiang 刘程强

12 Council members were also elected to the Central Executive Committee (CEC). The following positions were decided after a meeting of the CEC on 1 Jul 2008:

Mohammed Rahizan bin Yaacob
Eric Tan Heng Chong 陈恩忠
Lee Li Lian 李丽连
Yaw Shin Leong 饶欣龙
Ng Swee Bee 黄瑞美
Perry Tong Tzee Kwang 董志光
Koh Choong Yong 许俊荣
Png Eng Huat 方荣发
Dr Poh Lee Guan 傅日源博士
Jane Leong 龙秀金
Brandon Siow 萧卫民
Glenda Han 韩苏美

Press Statement / Release

2 May 2008

Labour Day Release: Response to Mr Seng Han Thong

We refer to Mr Seng Han Thong’s reported response to WP’s Labour Day press release.

It seems that Mr Seng, a labour MP, has conveniently forgotten to address WP’s questions about his ex-boss Minister Lim Boon Heng’s insensitive comments. Instead, he side-steps them by querying whether all employees of Hougang Town Council (HGTC) are Singaporeans.

For the record, the staff of HGTC are all Singaporeans. However WP recognizes the contribution of foreign workers and is not against their employment. For instance, HGTC does not object to its contractors deploying foreign workers in the estate.

The WP Labour day message raised three issues pertaining to workers in Singapore in view of the changing economic circumstances, the government policy on foreign manpower and the government’s attitude towards the employment of foreigners.

WP said, first, the government’s attitude should be to put Singaporeans first; secondly, we should resist any erosion of Singaporeans’ societal standing; and thirdly, it is the government’s responsibility to show compassion for the plight of the workers facing the pressure of high inflation.

Therefore, the issue here is not of foreign workers’ employment per se but rather how the Singapore Government and the Labour Union will ensure that the dignity and societal position of Singaporeans workers are not compromised in view of globalization and labour mobility.

Yaw Shin Leong
Organising Secretary
The Workers’ Party

Press Statement / Release

1 May 2008

Labour Day Message 2008: Putting Singaporeans First

The top down tripartite collaboration amongst the Government, employers and a pro-government labour union is a sure recipe for potential compromises for the Singaporean worker.

Overall employment creation in Singapore for the whole of 2007 is 236,600, surpassing 176,000 in 2006. However foreign employment rose to a new high of 144,500 in 2007. This means only 38.9% in 236,600 jobs created last year truly benefited Singaporeans.

Singaporeans will be none the better off, even if more jobs are created, when more than 60% of the jobs created go to foreigners. Although Singaporeans may participate in skills upgrading programs, many realize that promotional prospects are limited.

A certain portion of these jobs created could have been part time contract work positions. While the above statistics illustrate a rosy picture of high employment rate boosting the general public’s confidence in the Singapore’s economy, these figures require more detailed analysis to understand the actual employment status that Singaporeans are in.

Could it be that more Singaporeans are holding contractual part-time work positions, whereas foreigners might be benefiting from the full time positions created?

If this is the situation, this will disadvantage some segments of Singaporeans, resulting in less than ideal employment terms, such as compromised medical benefits and annual leave.

Singaporeans’ Societal Standing

To face the future with confidence and optimism, Singaporeans must be assured first of our societal standing in the midst of global uncertainties. Under the current top down tripartite collaboration model bold measures are taken to tackle macro economic challenges, and the impact on Singaporean workers must not be written off.

With reference to a recent report in the local media, Minister Lim Boon Heng gave an explanation to a distressed Singaporean woman concerned about losing her job to a ’sweet young beer girl from China’ that the foreigner’s presence actually helped to draw in businesses, in turn saving the Singaporean woman’s job. Such a ‘brush-off’ comment by a ministerial authority is hardly assuring.

According to Mr Lim’s logic, is he conceding that the PAP has created an economic model whereby Singaporeans must now be dependent on the foreign workers to retain our jobs? Singaporeans must now thank foreigners for helping us keep our jobs!

As a result of this ‘unique’ economic model, the societal standing of the Singaporean worker is now being eroded in our very own country.

Singapore is indeed becoming a ‘City of Possibilities’, however, it’s not for Singaporeans but foreigners. While Singaporeans are still conceptualising our great future filled with ‘possibilities’, alas, this might already have been stealthily taken away.

Showing Compassion

The current harsh reality of rising food prices and inflation is a major concern for all Singaporeans, especially so for the lower wage workers, whose livelihood is also threatened by the increasing numbers of foreign workers.

Our government must be compassionate and be proactive to initiate more substantial measures to help Singaporeans. Whilst NTUC has initiated a food voucher program, our government should also do something on top of the initiatives by NTUC. This is not to suggest that our government should subsidise food prices across the board but they are definitely capable of giving more help.

The Workers’ Party hereby repeats our call to reduce Singapore’s GST rate by 2% and to keep our GST rates at 5% for at least a year. We also propose that the government reduce fuel tax as a compassionate gesture to ease Singaporeans’ financial burdens.

In spite of this sombre backdrop, Workers’ Party encourages fellow Singaporeans to hold our heads high and not to lose heart. The Workers’ Party will continue to pressure the government so that Singaporeans’ privileges and opportunities are not compromised in the midst of a top down tripartite collaboration amongst the Government, employers and a pro-government labour union.

The Workers’ Party wishes all Workers in Singapore a Happy Labour Day.

Yaw Shin Leong
Organising Secretary
The Workers’ Party
1 May 2008

Press Statement / Release

11 March 2008

Escape Of Mas Selamat

Two weeks have elapsed since the escape of Mas Selamat Kastari from the Whitley Road Centre.

Since the occurrence, the immediate priority has rightly been placed on his recapture. Our security forces have been hard at work in an island-wide manhunt, and Singaporeans too have put up with various inconveniences at checkpoints and other areas to facilitate this massive operation.

Many questions have been raised about how this incident could have taken place in a country which prides itself on safety and security. In seeking to reassure Singaporeans, the Minister for Home Affairs has established a Committee of Inquiry under the Prisons Act “to discover how the escape occurred and to recommend appropriate actions to prevent such an incident from occurring again”. (MHA letter to media dated 7 Mar 08).

As Whitley Road Centre is gazetted by law as a prison, the government’s decision to convene the inquiry under the Prisons Act is not wrong. The problem is that the Prisons Act states that such inquiries shall not be open to the public. The Committee will submit its report to the Minister, and no part of the proceedings may be released to anyone except with the Minister’s written permission.

This raises important questions as to how much the public will eventually be told, since the Minister retains the discretion to release the findings as he sees fit. In a matter of such high public interest as the escape of a high-risk terror suspect from a government-run facility, what assurances or checks are there that the public will be given full information? In the interest of transparency, other governments have conducted public hearings into sensitive matters such as intelligence failures.

One option is for the President to appoint a Commission of Inquiry under the Inquiries Act. He can do so when he considers that having a Commission to inquire into any matter would be for the public welfare or in the public interest. This regime will allow the inquiry to proceed in public as the President shall direct. If there is concern that release of certain sensitive information will jeopardize the national interest, the President may direct that certain information not be made public.

Moreover, since Singaporeans have been marshalled to assist the authorities to hunt for Mas Selamat, the least the government could do is to keep us fully informed of the inquiry and its findings.

SYLVIA LIM
CHAIRMAN
11 MAR 08

Parliamentary Speech

6 March 2008

Budget 2008

Speeches delivered by The Workers’ Party MPs in the Budget 2008 debate: