Price hikes and the role of the consumer watchdog

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A well researched forum letter, consumerW is impressed...
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Price hikes and the role of the consumer watchdog

Weekend • December 23, 2006

Letter from Leong Sze Hian

I refer to the Consumers Association of Singapore's (Case) reply, "GST profiteering unethical" (Dec 15).

In response to concerns expressed in the media about price increases for essential items with the impending GST hike, Case has said that consumers can report to the Committee Against Profiteering (CAP). How many cases of profiteering have been determined by the CAP since its establishment in 2002?

The prices of various essential goods and services have gone up recently. For example, electricity tariffs have increased a few times, postage prices were raised, and both bus and MRT fares went up from Oct 1.

Does Case examine and speak out on such increases, especially when the services are provided by monopolies? I remember that it used to do so in the past.

In 2002, Case saw a walkout of members in a public clash of ideology and questions over what causes should be championed. The 13 members who resigned included lawyer Stephen Loke, who had chaired several committees within Case. That same year, Case spoke up against increases in public transport fares and called for the Government to monitor the impact of higher hospital fees.

In countries such as the United Kingdom, consumer associations are independent and free of any connection with the government.

Such independence is the case in almost every developed country in the world, because there may be inherent conflicts of interest — the interests of consumers may often be at odds with the goods and services provided or indirectly influenced by Government or government-linked companies.

One of the requirements to be a full member of Consumer International, the international association for consumer associations, is that they must be independent of party politics.

In Singapore, the president and vice-president of Case, as well as the chairperson of CaseTrust Advisory Council, are all Members of Parliament.