PM Loong Warn Against Pork Barrel Politics... He He He

[Sleepyman]

Don't turn elections into auctions

S'pore not immune to populist calls to spend more, says PM Lee, on need to protect reserves

By Jeremy Au Yong

 

WHEN politicians bid to outdo one another with more and more goodies for voters, expect trouble in paradise.

That was the message from Prime Minister Lee Hsien Loong yesterday when he cited Norway and Australia to make a case for protecting Singapore's reserves.

In both countries, he said, the populist call for government handouts had coloured local politics.

In Australia, the war between its two main political parties prompted newspapers to introduce a 'pork-o-meter' to track the race to offer voters more and more goodies during the last election.

In Norway, the clamour was for more money to be taken from a reserve fund meant for the future. Newsweek magazine, in describing the situation, headlined it Trouble In Paradise.

Yesterday, PM Lee gave an extensive account of what went on in both countries when he spoke during the debate to amend the Constitution to allow the Government to tap more of the returns from investing the country's reserves.

In Norway, the saga began with the discovery of oil in the 1970s. It became rich.

In 1990, it started a Petroleum Fund, into which was channelled the sales proceeds from its oil and gas. The reason: It did not want to be left with nothing when the oil wells dried up.

Today, the fund has an estimated US$350 billion (S$519 billion).

'Even Norway, famously prudent, with conservative, hard-working, frugal people, finds it difficult to resist a populist push - spend just a little more.'

In 2001, Norway's government included some of the fund's money in its budget. Parliament capped the sum at 4 per cent of the value of the fund.

'But once they had set the rules, they broke the rules,' Mr Lee noted.

The Norwegian government exceeded the 4 per cent limit from 2002 to 2005, arguing the economy was not doing well and it was thus necessary to spend more.

In 2005, they renamed the fund the Government Pension Fund - Global, to remind Norwegians that the money was not to be touched.

Spending slipped below the 4 per cent ceiling in 2006 and last year, and that is because oil prices soared. Still, some Norwegians clamoured for more.

Said Mr Lee, referring to Newsweek's story: 'This is a country which had everything - oil, gas, welfare state, womb to tomb, all provided for - but still there is an opposition party arguing you should pump more oil and have more profits, improved services and lower taxes. So there is no way you can avoid these pressures.'

Elections are due in Norway by next year. 'Then, we will see whether the majority of Norwegians continue to uphold the principle of saving for the future,' Mr Lee added.

For Australia, the events played out during last year's election.

Then-prime minister John Howard announced a A$34 billion (S$34.3 billion) tax package on the first day of the campaign. Labor Party leader Kevin Rudd responded with a A$31 billion package.

Mr Lee said: 'So major newspapers in Australia started to keep track of the cost of campaign promises. They called it a pork-o-meter. So as you put in more, the dacing (weighing scale in Malay) goes up.'

In the end, Mr Howard's promises hit A$65 billion and Mr Rudd's, A$56 billion.

'Finally, the election was not decided on the pork-o-meter. The people wanted a change...and they chose Kevin Rudd.'

In telling these stories, Mr Lee stressed he was not out to criticise others but to show the nature of election politics, to which Singapore was not immune. 'We too, face the reality of election politics. Opposition parties often demand the Government spend more, particularly near election time. They never ask where the money will come from, least of all do they explain where the money for their programmes will come from at election time.'

Mr Lee added: 'Therefore, we have to take extra care to safeguard our reserves for the future, to frame the rules to prevent our elections from becoming auctions. Therefore, we need to put in place a system that will subject the Government to tight fiscal discipline regardless of which party is in power.' [email protected]

 

 

 

LUP, NSS, GST credits anyone? "buy votes, fix oppositions?" hehehehe seems to me they dont really know what they are saying...

[Sabian]

What pork barrel politics?

 

What we have are are gimme-more-recession-proof jobs here for some and thou shalt not earn too much and add to the wage inflation for some...

 

tsk tsk...

[Nutty]

[Shull]

Who's giving out money before the last election??

 

Pot calling kettle black??

[Boyboy]

i won't say that he is wrong or that he is a hypocrite, but he is really missing the point.

 

opposition has no access to resources to give out goodies. so how to have pork barrel politics?

 

i wonder who's doing the "buying" of votes, since somebody mention that he need to "buy votes" if got too many opposition get into parliament.

[Sabian]

Here got vote buying meh?

 

Here is more like MeLee Bond scenario. Say give Leebates and payout etc

 

but like the minibond holders if kenna credit event (like GST up/ Bus fare up/ MRT fare up/ Electricity up by "average" 21%), then you also won't see a single cent also

[Getzoooom]

he just trying to say, peasants pls dun expect to take more money from his pocket.. enough is enough.

[Blackyv]

money only meh??? i thought LUP also is some form of goodies hor..... really have to salute them recently.....beh pai seh hor..

[Nullifi3d]

Mr Lee, enough talk. You need to save some saliva for future funds.

[Stivo]

'Finally, the election was not decided on the pork-o-meter. The people wanted a change...and they chose Kevin Rudd.'

 

He is right... singapore needs a change...

[Blackyv]

yalor.. very clear message.... i also receive the message.. i dont think any peasants will have a piece of those 160b even IF they will use it in the first.....

[Blackyv]

well, i hope not a big change but change the number from 66.6 to 55.5 will wake them up for sure but if that also doesnt help, who can they blame when they see 44.4 in near future??.....

[Shull]

(not saying anyone in particular)

 

generally, politicians will paint you politically correct beautiful images..but whether it actually happens is another question altogether..

[Kingcopa]

Sometime wonder if he is ard meh. example MAS case, after quite sometime then he come out n make a statement, this minibond saga also drag sometime then he come out n make statement.

 

As a head of country, shouldnt he be the very first to step out n make statement instead of his staffs?????? Lead by example mah

[Stivo]

to a point, i totally agree with you..

 

no one will know if the opposition would be better or not, in fact is there any capable, creditable ones out there??

 

if they didnt come out with GRCs, they would probably have lost it 10 yrs ago... ask around where does AMK and MP covers to....

 

we just got to sit tight and weather the storm... :) peace ..

[Speddevil]

no more paycut, tax, erp, additional miscellaneous tax please

[Scion]

They never ask where the money will come from,

 

 

from the people lah... who else?

hehe

[Watwheels]

Can they stop saying things that only they can understand? Isn't now the so called future??

 

20years ago they say the reserve fund meant for the future, 20years later say the same things. When in future when we really need the funds I wonder whether got any funds to begin with in the first place?

 

If dun use during recession, dan use for what?