Reserve US$130 billion ....budget surpluses $2 billion per
annum..off-budget surpluses (HDB, JTC, LTA etc( $1 bil per
annum..
Government runs the country like a private business
corporation:
(1) Sell services to people at full market values and
(2) Charging back (only monopoly has such power in free market) all
wage or material cost increases...resulting in pushing fees over
the original market prices...to inflated market prices.
Taxes paid are under-utilized, departments and ministries
over-spend on over-allocated budgets causing wastages.
Over-paid taxes accumulate as surpluses and go into
reserves..reaching US$130 billions in 2005.
HDB acquired lands at cheap prices under the Land Acquisition Act
but handed over acquired lands to state land office which then
sells back to HDB at full market prices with a bit of discount to
look good.
HDB keeps quiet about the cheap land prices originally paid for
using power of acquisition but nevertheless sell the HDB flats at
full market prices like private developer in way way over the
construction and land costs. Instead of telling the truths in
parliament on such lower land costs and making of huge profits due
to the fact that lands were paid for by tax payers, HDB gives a bit
of discount to claim it has given a subsidy...as a result HDB flat
prices were pushed up from $7,800 (3 rm) in early 1970s to
$150,000.
Through creative accounting, MOH also charges full market prices
for essential medical services above costs of lands and fixed asset
costs paid under taxes (not revealed) but claim it subsidised
medical fees or has kept them affordable.
If government does not have the monopoly in the first place many of
its services will have to face closer a long time ago due to
inherent inefficiencies, e.g. over-staffing and excessive
promotional structures where even car park are run by officers at
super-scaled salaries a ridiculous situation as compared to private
car park operators who engaged officers at 1/3 of car park
superintendent's salaries.
Through systematic corporatizations, and monopoly powers e.g.
utility, medical, educations, policing, housing, many services were
corporatised into GLCs and through the GLCs operating as private
companies higher fees were charged up to full market prices.
One such corporatised government service e.g. MediaCorp/Mediawork
ran into heavy losses due to unsustainable fees due to internal
inefficiencies in 2002 within 2 years of corporatisation proving
the fact that in the real market environment (not monopoly),
government departments trying to increase fees in one-sided manner
like HDB will lose monies and have to be forced by market to close
shops..like what Mediacorp has discovered in 2003.
So by charging market prices for housing, medical and essential
services and charge-back of all cost increases, government is
building up the bigger time bombs more than what minister Ng is
claiming WP is doing in the form of highest market prices and
inefficiencies of government. All the citizens' taxes become idle
monies or accumulated as surpluses and go into reserves.
Reserves can be used to benefit the citizens e.g.
(a) creating jobs
(b) lowering high costs of living and doing business or
Reserves can also be used to benefit others e.g.
(c ) salary increments for ministes and year-end 3-8 month bonuses
of ministers..or
(d) more projects like 7 wonders or upgrading of flats to win
votes.
MARKET REACTIONS TO PRICE INCREASE:
HDB tried to withdraw rental rebates in 2001 during recessions on
inflated shop rentals ...claimed to be rebates deserving taking
back.
Whole neigbbourhood shops closing down...in large nos. 4,000 of
which are in arrears of mortgage payments.
HDB saw the political time bombs caused by their market-pricing
policies in the form of deserted or failed shops and mortgage debts
..proving once again that price increases by HDB has let to reduced
spending causing job loss of jobs and running down of the
economy.
JTC which had to see the same thing happening to cause foreign
companies to close shops acted differently proving that HDB didn't
bother
HDB flats increase from $7,800 (3 rm) to $150,000 through creative
accounting but minister said HDB flats will be kept
affordable.
Utility tariff increases, ..ministers said they will be kept
affordable.
HDB flat and shop prices were over-priced as can be seen from the
lower resale prices causing heavy mortgage debts and CPF losses by
citizens but ministers still said their prices are subsidised and
will be kept affordable even if HDB were forced to hold large stock
of unsold flats.
At this election time, people should ask ministers to change their
MANIFESTO on two issues:
(1) whether government is elected to charge citizens FULL MARKET
PRICES OF GOVERNMENT AND MONOPOLY CHARGE BACK COST RECOVERY and get
all the ministers to answer such questions.
(2) whether government is elected to keep the tax monies for their
own purposes of salary increments and higher bonuses or create jobs
and lower costs of living..
