ST 28/02/2007 -MPs praise 'fundamental shift' in how Govt helps the low-income

Straits Times 28/02/2007
MPs praise 'fundamental shift' in how Govt helps the low-income;
But they feel more can done so that casual workers benefit from new Workfare scheme
Sue Ann Chia

THE new Workfare scheme won accolades from MPs, but they wanted more done to ensure that informal workers such as odd-job labourers can benefit from it.

They were also concerned whether the Workfare Income Supplement (WIS) would breed a 'crutch mentality', and lead to low-wage workers not wanting to improve their skills - and salaries - as a result.

The Workfare scheme, which supplements the income of older low-wage workers, was the day's most talked-about issue.

It was raised by almost all 22 MPs who spoke on the first day of the Budget debate yesterday.

Most praised the new permanent social safety net as representing a 'fundamental shift' in how the Government was helping low-income earners whose wages have stagnated or declined over the years.

Workers earning $1,500 and below and who are aged above 35 can receive up to $1,200 in Workfare a year

The aim is also to bring those who are now not part of the CPF, into the scheme.

Opposition MP Low Thia Khiang (Hougang), supported Workfare but questioned it being linked to the CPF.

'To expect those who are doing odd-jobs and have irregular income to maintain a CPF income before they can receive the supplement scheme is not so attractive and in some way shows a lack of sincerity of the Government,' he said.

Other MPs recognised that informal workers faced difficulties signing up.

So instead of making them contribute to Medisave, allow them to just show proof they were working to receive Workfare, said Mr Christopher de Souza (Holland-Bukit Timah GRC).

But Ms Indranee Rajah (Tanjong Pagar GRC) said it could be difficult to show proof as they were in the informal sector and steps should be taken to address this.

This is precisely what the National Trades Union Congress (NTUC) is trying to do, said labour MP Madam Halimah Yacob (Jurong GRC) and Nominated MP Cham Hui Fong.

A concerted effort is being made to get bosses to put such workers on the CPF system.

Homeboy, listen to the nice lady lawyer with the smarts. I could've told you that. But nice to know you're talking about the po' people.