Goh Keng Swee
Singapore
“Sir, since that was not a supplementary question, may I be allowed to comment briefly on that. When we form a Committee of the House to inquire into an activity of the Government, the assumption must be that there has been something improper. In this instance, where is the impropriety?”
“The career of Brig-Gen Lee is well-known to the public. It has been published in the newspapers. Why then does he come out with all this drivel, other than to impute improper motives? Mr Jeyaretnam: Sir, I object to the term "drivel" as spelt out by the First Deputy Prime Minister. He should know better as a Member of this House.”
“Sir, this is getting most tiresome. So I will just say this - that Brig-Gen Lee Hsien Loong has proved himself in so many ways, both inside the Army and outside the Army, to be a person of outstanding quality. When the Member for Anson says the public are worried, he is again talking nonsense.”
“Sir, I rise to clarify. Actually, the limits are not set by me. I do not have a heavy hand. I regard the MAS as the implementing agency of Government, and in this respect I have to listen to the Minister for Finance and the Minister for Trade and Industry.”
“How you set them, how restrictive or how liberal, would determine two things: (1) the degree of imported inflation from abroad via goods and services from abroad, and (2), the degree of capital inflow from abroad which will affect our money supply in Singapore.”
“Sir, if the land could be more profitably used, say, for commercial or residential purposes and if the Minister for National Development requires such land, then, of course, the land will be acquired and the generous terms will apply.”
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“As such, other super-powers will be drawn in and the resolution of a conflict of this scale will rest with the giants. Sir, I now wish to turn our thoughts away from the horrendous possibilities of super-power conflict to more mundane matters, and that is the second consequence which we have to face as the result of the withdrawal of the British military presence. This is the decline in our gross national product and the loss of employment of large numbers of people. I want to go at some length into the number of locally employed civilians and enlisted personnel who will be laid off as a consequence of the closing down of the British bases. I have circulated a Table* for the information of hon. Members as the facts are best set out in this form. I would like to say at the outset that while some of the figures are very accurate, others are not so. For instance, the number of civilians employed in the Armed services and the number of locally enlisted personnel are derived from accurate records. On the other hand, the number of domestic servants employed by British service families is very approximate, as no central registers are maintained in respect of them. * Following is the Table: BRITISH WITHDRAWAL Locally employed civilians and personnel Apr. Dec. Dec. Dec. Dec. Dec. 1967 1967 1968 1969 1970 1971 Locally engaged 25600 24000 19000 16500 11000 Nil civilians by the Armed Services Locally engaged 4000 4000 3200 2700 2200 Nil civilians by MPBW, NAAFI, AKC, etc.”
“These increases take place in gradual measured steps, and are quite the reverse of the hasty action we are alleged to be taking, it will not be until 1979, that is, the end of the next decade, that we would reach the full potential of the order of battle. This assumes, of course, that we will continue to provide weapons, ammunition, equipment and transport for each and every reserve battalion. We shall certainly do this for the next few years, but whether we should accumulate vast stores of military hardware right up till 1979 is a matter that can be decided in the light of circumstances prevailing. By the same token, we are also keeping our options open for a faster build-up should this prove necessary. With the training units and the know-how that is being rapidly acquired, we would have the capacity before the end of 1971 to vary the rate of expansion to such levels as may be judged appropriate, taking all prevailing circumstances into consideration. I mentioned a short while ago the kind of attack which our Armed Forces in co-operation with the Malaysian Forces would be in a position to repel. This would be approximately the kind of effort mounted against us by the Japanese in the Pacific War, that is an invasion force consisting of three to four divisions which in itself required a tremendous logistical effort. However, if a really major threat develops, say an invasion by 50 divisions or a threat to deliver a nuclear attack, then a situation arises which concerns not only ourselves but all the major world powers. An assault by 50 divisions or a nuclear threat can only be mounted by a superpower or by countries acting with the connivance and support of a superpower.”
“To give some idea of the scale of operations which our army can eventually undertake, let us consider the Japanese assault of Singapore during the Pacific War. The assault was carried out by three Japanese Divisions. The 5th and 18th Divisions landed at Pasir Laba and Lim Chu Kang, whilst the Imperial Guard Division landed to the left of the 5th Division, the front extending to the causeway. Unfortunately for us, the troops then defending Singapore, consisting mostly of conscripts and regulars of other countries, did not put up a distinguished performance for reasons which need not detain us here. But if at that time, we had forty battalions of our own men, I have little doubt that the Japanese army would have found the going a great deal harder. Of course, the sensible thing to do, if there is today a repetition of an offensive of this nature against Malaysia and Singapore, is to send our troops to fight on the beaches of Kota Bahru and by the Slim River alongside Malaysian forces rather than wait for the invading army to reach the causeway This rather fanciful illustration from past history serves to underline what has often been said of the indivisibility of the defence of the Peninsula and Singapore. I now turn to the other criticism, namely, that we are arming ourselves at too rapid a rate. This point of view can be quite easily disposed of. At present, only 20 per cent of national servicemen are selected to do full-time service in the Armed Forces. Even with the expanded Defence programme it is unlikely that the percentage of intake into full-time service will substantially increase. Further, the build-up of the army strength takes the form of increases in reserve battalions.”
“This is the result of National Service which allows us to have a comparatively small full-time army while building up a reserve army of increasing size in the course of time. It works out this way. The national serviceman, after serving two years in the army, leaves the full-time army and takes on a civilian occupation. He is, however, liable for reserve service for ten years. During this period of ten- years' reserve service, he will be called up for full- time training one whole month each year. This enables us to build up reserve battalions as national servicemen leave the active battalions on completion of their two years' service. All that is necessary to establish these reserve battalions is to store up weapons, ammunition, equipment and transport for these battalions, as well as to maintain a nucleus of regular officers and men. The bulk of trained personnel is provided by reservists. An infantry battalion in full-time service would reproduce itself every two years into a reserve battalion. Similarly, elements from the armoured unit, artillery, engineer battalions and other units will also be released into the reserves, thereby creating a complete infra- structure of fighting units in the reserves. The complete cycle is 12 years, with national servicemen doing full-time service for two years and ten years as reservists. At the end of 12 years from the beginning of national service, that is to say, in 1979, 30 to 35 infantry battalions would have been formed as reserves. In other words, by 1979, under the present rate of enlistment, we would have available on immediate mobilisation, 45,000 well- trained troops. This is a substantial force by any standard. It should be adequate to protect Singapore against any foreseeable military threat.”
“The first takes the position that Singapore, being small in population and in land area, is incapable of defending herself against armed attack by countries bigger in size. The other point of view accuses us of arming ourselves in a precipitate manner and to an extravagant degree. I believe neither of these views is correct. The first view regards the building of defence forces principally in terms of its nation-building value. Young men are conscripted into the army by national service and are brought together in a collective life. They have instilled into them certain values of discipline, loyalty, leadership and other useful qualities. While in no way denying the real worth of the nation-building functions of the defence build-up, I would like to say that these people overlook two important points. The first is that we are not creating a large body of enthusiastic amateurs. On the contrary, we expect our soldiers in all units and at all levels to attain the highest professional standards. The rigorous training systems created with the advice of the Israeli Defence Force Mission ensure that they get the best training possible. Further, members of the armed forces are equipped with the best weapons money can buy. The same holds true of communications equipment, transport and other logistic requirements. All these preparations will ensure that we have adequate fire-power, mobility and professional skill. The second point which the pessimist overlooks is that the full-time units of the army in this case, two infantry brigades and one armoured unit operational as from 1971 do not represent the total potential of our army force strength, or "Order of Battle" as the professionals call it.”
“In our case, apart from 23 members of the Israeli Defence Mission, serving as instructors and advisers, and, at the end of next year, Sir Rochford Hughes, the entire Defence establishment is staffed by our own officers at all levels. This satisfactory outcome is the result of a sound system of training institutions which has been established and which is even now being rapidly expanded. The Singapore Armed Forces Training Institute, or SAFTI, provides the major training effort. In addition to infantry training up to platoon level, it is now giving advanced training to officers at company and battalion levels as well as specialised training in support weapons and military medicine. In addition to SAFTI, a School of Artillery has been established as well as a School of Field Engineers. These are attached to the respective battalions. Training activities are also carried out to provide various technical personnel required in an armed force. A School of Electronics will be formed in 1969. Already in existence are a School of Catering, a School of Drivers, a School of Provost and, believe it or not, a School of Military Accounting. The P.D.F, training centre has been established and it runs courses throughout the year to upgrade P.D.F. officers and N.C.O, cadres. The above account outlines the expansion of our defence forces up to 1971. It will be a costly undertaking, the annual cost in cash terms reaching some 10 per cent of our current gross national product, that is, rather more than $300 million a year. I have come across two kinds of reaction to our defence build-up programme. As they seem widespread and further appear to me to rest on an incomplete understanding of our defence effort, it may be worth while to dwell at some length on them.”
“Their present functions are confined to internal security duties. A P.D.F. Engineer Battalion also exists and is trained in the running of essential civilian services during an emergency. The command and control of P.D.F, units is vested in the Brigade Headquarters which has been set up. The units which I have described have been raised in accordance with the original expansion plan for the Army and according to the same time-table. However, as a result of the accelerated British withdrawal, it has been found necessary to increase the force strength of the Army in 1971. In addition to the two Infantry Brigades, it is proposed to raise an Armoured unit consisting of tanks and armoured cars. The preparations for raising this Armoured unit are at an advanced stage. Orders for the vehicles have been placed and a nucleus of officers and technical crew for the unit is now being trained in the Israeli School of Armour. The main strength of the unit will be drawn from officers and men to be trained in the School of Armour which we shall establish in Singapore. The Armoured unit is expected to be fully operational by 1971. One noteworthy feature of the expansion of the Army which has not drawn public comment is that the entire body of Officers and Non-Commissioned Officers are staffed by our own citizens. It may look to us as a natural occurrence. But if we compare our Army with those recently raised in many developing countries, we will notice that many of their defence units are staffed by a substantial force of expatriate officers and technicians.”
“Regular soldiers of the two Battalions have been distributed to other units of the Armed Forces. The control and command of the Battalions are vested in a Brigade Headquarters established in October this year. It is now fully operational and a second Brigade Headquarters will be established in the middle of next year. Infantry Battalions have to be served and supported by other combat and technical units. An Artillery Battalion has been established and has reached an advanced stage of training. It is expected to be fully operational by the middle of 1969. A second Artillery Battalion will then be raised. These Battalions use the 120 mm mortars which provide close fire support for front line troops. One Battalion of Combat Field Engineers raised this year will be fully operational by the middle of next year. The Engineers will perform the conventional roles expected of such units, that is, to help in infantry assault by breaching all types of obstacles, including mine-fields. They will also have other capabilities, such as providing for river crossing, carrying out all types of demolition missions, constructing fortifications, and so on. The Signals Battalion has been formed and is functioning to provide communications between the higher formations and headquarters. All units of the Singapore Armed Forces are equipped with the most modern signals equipment available. In addition to the Battalions which are performing full-time military duties, we have units of the People's Defence Force. The P.D.F., as hon. Members know, consists of civilians who give up part of their time after work or during periods of leave for military training. At present, the P.D.F, is organised into three Infantry Battalions with a fourth to be raised early next year.”
“The Hawker Hunter is an interceptor aircraft which can be used also in ground attack operations. It is a fine and versatile aircraft. Orders for these aircraft together with the electronic gear and weapons systems have been placed and delivery will be effected over the next two-and-a- half years. The task of building an Air Force from scratch is an exacting one. We are indeed fortunate to have the whole-hearted assistance of the Royal Air Force. The Singapore Government is also fortunath to be able to secure after his retirement from the Royal Air Force in February next year the services of Air Marshal Sir Rochford Hughes. Sir Rochford Hughes, currently the Air Commander of the Far East Air Force, has a long and distinguished career as an Air Force Officer and we can have every confidence that with his advice and guidance the Republic's Air Force will be one of high quality. I now turn to the expansion of the Army. This was the first arm of the service to be expanded after independence. The build-up is proceeding satis factorily. The present state of the Army is as follows. We have increased the number of Infantry Battalions from two in 1965 to five today. Two of these Battalions are fully operational. Another two are in an advanced stage of training and will be fully operational by the middle of next year. The fifth Battalion will be operational in December next year. Next March the sixth Battalion of the Singapore Infantry Regiment will be formed. I wish to say here that the two Battalions we inherited in 1965 are not just being retained in the condition that we found them. The 1st and 2nd Battalions of the Singapore Infantry Regiment are being reconverted into the new battalion structure using new weapons and manned by National Servicemen.”
“A school of naval training was established on the 15th November this year and the first intake of recruits will commence training in February next year. This will be concerned purely with training of seamen, navigation, care of ships and so on. Naval crew who will take charge of radar, or mechanical equipment, will receive their basic training in other training institutions of the Armed Forces dealing with these subjects. I now turn to the Air Force the establishment of which is proceeding apace. Fifteen young men selected by a rigorous procedure out of several hundred, are now undergoing training with the Royal Air Force in Britain. Another four are doing helicopter training in France. This month another five pilots are going for training in the United Kingdom and more will be sent there next year. On their return they will be attached to the Flying Training School in Singapore which will turn out the additional pilots required by our Air Force. The Air Force requires not only pilots but also ground crew to service the aircraft and technical and operational teams to operate radar and air defence systems. A Technical Training School will be established to train such personnel and the staff of this school is now being trained overseas in mechanical, electrical, electronic and other trades. The Republic's Air Force will be operational before the end of 1971 and it will consist of squadrons of Cessnas. Jet Provosts, Aloutte Helicopters and Hawker Hunters. The Cessna serves as a primary trainer. It can also perform the role of spotter aircraft. The Jet Provost is the basic jet trainer. It can double- up for counter-insurgency operations and for ground attack. Aloutte Helicopters are capable of performing a variety of useful duties.”
“It is clear that this very large and rapid increase in our Defence expenditure sets the dominant theme in this Budget. In a closed totalitarian system, it is possible to incur expenditure of this size in secret without any need for a public explanation as to how the money is being spent. In an open Parliamentary system such as ours, it is not possible to conceal increases of expenditure of this magnitude. Nor is it desirable to do so. Our young men are being conscripted by the thousands into the Defence forces. Soon taxpayers will be asked to pay more. Obviously the public has a right to know what we are spending the money on, what they can expect to get in return for it and whether they are getting value for their money. I will therefore deal with the Defence build-up over the next few years taking each of the three services in turn. I will start with the Navy. Our original plans made no provisions for naval expansion (until the early 1970's) nor was there any provision for the establishment of an Air Force this year. But obviously with the end of British protection in three years' time, we should waste no time in creating these services. In the case of the Navy, the first phase of development is envisaged to take the form of establishing a force of six patrol craft. Orders for these craft have been placed in June of this year with Vosper's. Two will be constructed in Britain and four in Singapore. Delivery will commence in the middle of 1970 and will be completed before the end of 1971. Pending the arrival of these craft the present naval effort is confined to training of personnel. Four naval officers are now undergoing training in the United Kingdom with the Royal Navy and another four are in Australia training with the Royal Australian Navy.”
“Sir, I beg to move, That Parliament approves the financial policy of the Government for the financial year 1st January, 1969 to 31st March, 1970. Sir, in last year's Budget, Defence Expenditure did not occupy a prominent position. Although the Republic had been building its Defence forces since 1965, the first announcement of British withdrawal plan called for no change in the Republic's Defence Programme as the assumptions on which these plans were based took into account the probability of total withdrawal of the British presence by 1975. It was then proposed to expand our Army to seven Infantry Battalions. These with their supporting arms and services will provide the elements of two Infantry Brigades. Last year I was able to make the following statement in my Budget address: 'Provided there are no further changes of mind on the part of Her Majesty's Government, the build-up of our Defence Forces on land will continue as planned.' The reservations contained in the proviso struck an ominous note at that time and unhappily for us the fears on which they rested were realised. The ac celerated withdrawal plan had totally upset the assumptions on which the first Defence plans were made and it was therefore necessary to revise and draw up an entirely new plan. From time to time, Ministers of the Government had made public statements about the buildup of this or that element of the armed services. I myself made a forecast last September that there would be a very substantial increase in the Defence Budget for the forthcoming year. I mentioned a figure of Defence expenditure reaching some 10 per cent of our gross national product, as a result of which tax increases were hardly avoidable.”
“This so-called "non-professional" salary scale is really a misnomer. It is something like the holy Roman Empire which is neither holy nor Roman nor an Empire. There are many professionals who are emplaced on this scale. INDUSTRIAL RELATIONS (AMENDMENT) BILL Order read for resumption of motion, "That the Bill be now read a Second time," [31st July, 1968]. Question again proposed. 3.13 p.m.”
“Sir, in paragraph 142 the Commission recommends that pharmacists should continue to be emplaced on the non-professional salary' scale. Therefore, I am afraid that is the recommendation which the Government will accept. It must be assumed that the officers concerned have made out a case as thoroughly as possible to the Salaries Commission, and if the finding is adverse, then that is that.”
“Sir, I think we had better get through the implementation of the recommendations of this Commission before we start on another one.”
“Subject to any views from the Ministry of Education on this recommendation, my Ministry proposes to accept this recommendation.”
“If they are paid on Grade 'E', then they will remain to be paid on Grade 'E'.”
“I think the Salaries Commission makes no recommendation in this respect. I do not think I am called upon to make any comment on this subject.”
“Permanent Secretaries will be promoted on the basis of individual merits and not by reason of their holding of posts. Of course, I accept that this is a departure from the normal civil service practice. But, in effect, it will probably not make all that difference because obviously we have got to post the ablest of them in the most important positions.”
“I thought I made it clear in my speech yesterday that we do not accept the Commission's recommendation in respect of conversion, having a difference of conversion between the married and unmarried officers. They will all convert on the same basis, that is, the bachelor officer will convert in the same way as the married officer. In effect, he will get an increase in total pay on this exercise costing the taxpayers a quarter of a million dollars a year. Why is the date of implementation 1st January, 1969? If we regard our decisions as final and refuse to hear representations, we can probably implement it from 1st October, 1968. But we want to hear the views of unions, associations and other people and, therefore, we have to give them time to make their representations. It will probably be sometime in October when we can make up our minds. Therefore, it is necessary to allow another two or three months to pass and 1st January, 1969, seems to be a very convenient date.”
“The Government accepts this recommendation.”
“Yes, Sir, the Government accepts this recommendation.”
“It is the Public Service Commission which decides on the frequency of promotion exercises. Government can only propose to them that more frequent promotion exercises be carried out, but the decision rests with the Public Service Commission, it varies from Ministry to Ministry and from service to service. So far as the services under the jurisdiction of the Ministry of Finance are concerned, it is mainly the Administrative Service. The last promotion exercise was held some 18 months ago and I think we should have one pretty soon. If possible, one would like to see annual exercises carried out. But the trouble may be the lack of suitable candidates. So, subject to these reservations, I would say that we should carry out more frequent promotion exercises starting from now. I am afraid I cannot be more definite than that.”
“I think this point was raised in a letter to the newspapers this morning. This looks to me to be an oversight on the part of the Salaries Commission. For reasons set out by the Member for Telok Blangah, technical teachers will convert on no less favourable terms than other grades of teachers.”
“I was not referring to directors or members of the board of directors. I was referring to the chief executive of companies and they are usually known as "managing directors". For a managing director of a big firm in Singapore to get a pay of $10,000 a month is by no means unusual. Civil servants who are members of the boards of directors of companies in which either the Government or the Economic Development Board has a share of equity, do receive director's fees. They do retain these fees if they are paid out because of the contribution that they make to the firm. I may say that these director's fees are in most cases very small. In some cases, the firms, being new ones, do not pay any director's fees.”
“Sir, since we do not print our notes as some countries do, I am afraid that is the case. Mr Ng Yeow Chong (Mountbatten): Sir, the Hon. Minister for Finance has mentioned just now that one company pays its director $10,000 a month as director's fees. Can the Minister enlighten the House as to which company pays $10,000 a month as director's fees? My second question is: are civil servants who are serving on the boards of public companies entitled to director's fees?”
“If we had accepted all the recommendations of the Salaries Commission, the additional cost to Government would be of the order of $6.8 million a year. We have not accepted the recommendation in respect of a general increase in Division I salary scales and in Superscale. This recommendation would cost $1.8 million. Therefore, we are left with an increase of $5 million a year. Then we have decided to allow married women, bachelors and married women without children to convert to the new salary scales without restrictions arising out of their marital status. This costs another $¼ million. So the total additional sum is $5¼ million a year.”
“If we want to attract and retain talent in the civil service, this is what we must do. It is, therefore, a very wise move, in my view.”
“Sir, Members of Parliament do not get salaries or pay. They get an allowance which is meant to help them out by way of transport expenses and for work in the constituencies. Again, there is no question of increase of salaries to Members of Parliament. As regards the suggestion that Super-scale officers are overpaid, I completely disagree with the Member for Ulu Pandan. Let me give him an example of how pay in the top level of the civil service compares with pay in commercial firms. A managing director of a reasonably prosperous company in Singapore may get a total pay of $10,000 per month or more, which is four times what the Permanent Secretary of a Ministry is getting. The work of the Permanent Secretaries is more onerous and more responsible. To say that they are overpaid when they get only one-quarter of the pay of people of equivalent ability in the private sector is, I think, completely misleading. The increases which we are recommending for the top posts in the civil service, in my view, are in themselves inadequate to do justice to the situation. But we expect that people will make a career in the civil service not entirely for the purpose of making money and becoming rich.”
“His promotion prospects will not be prejudiced.”
“The Commission did not deal with the salaries of people who administer injections to chickens, whatever they are called. The posts of these people are temporary. I think they carry a salary of $100 a month and are probably held part-time by farmers. It would not be true to say that there is a general upward revision of Division IV salary scales. What has happened is that the number of salary scales has been reduced, with the result that some people benefit by having a longer salary scale so that they will continue to enjoy more increments. It does not mean that they get an immediate increase in pay. Since the temporary inoculators are not on any salary scale but receive a fixed salary, they do not enjoy the benefit of a better salary scheme. I hope I have made myself clear. There is no way of bringing them in because the Commission did not recommend a general increase.”
“Sir, Ministers' salaries will not be revised in this exercise.”
“Sir, I cannot give any assurance that the salary scales will never be changed to the detriment of the officers for all time. But I can give the assurance that they will remain substantially in their present form unless there is another major exercise in salary revision downwards. In other words, if there is no general revision of civil service salary scales downwards, those who opt to remain on salary scales personal to themselves with the retention of the variable allowances will continue to receive them.”
“Yes, Sir. Mr Speaker: In that case, questions on the Minister's statement on the Report of the Salaries Commission will be taken tomorrow immediately after Questions for Oral Answer. BILLS INTRODUCED 3.43 p.m. SUPPLEMENTARY SUPPLY (NO. 2) BILL "for making Supplementary Provision for the Public Service for the year 1968", recommendation of President signified (Mr E. W. Barker); presented for the Minister for Finance by his Parliamentary Secretary (Mr Tang See Chim); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. ROAD TRAFFIC (AMENDMENT) BILL 'to amend the Road Traffic Ordinance, 1961 (No. 26 of 1961)", presented by the Minister for Communications (Mr Yong Nyuk Lin); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. EMPLOYMENT BILL Order read for resumed consideration in Committee. [Mr Speaker in the Chair] 3.45 p.m.”
“It is proposed that all recommendations accepted by the Government and all proposals confirmed or amended subsequently will take effect as from the 1st January, 1969. Though not covered by the Report of the Salaries Commission, it will be necessary to revise the salaries and pay structure of the Armed Forces in view of the intention to accept the new salary structure for the civil service.”
“In most instances, the recommendations of the Commission have been accepted. In some, further studies are needed before a decision can finally be made, and in a few instances the recommendation of the Commission has not been accepted. A general review of pay and conditions of service of the whole civil service is a complex and major undertaking, bearing in mind that the Government employs more than 50,000 employees. Implementation of these proposals or amendments of them will constitute a major administrative exercise. I have indicated the Government's position in respect of the major recommendations of the Commission. It should be noted that the Government has not accepted any salary increases except those recommended for a few specific grades, i.e., the Medical Ancillary Service, the Nursing Service, Midwives and Graduate Teachers. The Government agrees to the recommended improvements for these officers because they have been made by the Commission after a very careful study and are considered justifiable based on their relationship with other grades in the civil service. Where the Commission's recommendations are accepted, I do not expect much difficulty in having them implemented. Where Government has decided at present not to accept the recommendation of the Commission, an opportunity will be given to trade unions, staff associations and others affected to make representations to the Treasury or to the appropriate Ministry before a final decision is taken. All representations will, of course, be given due consideration. A final review of the position will be made later this year. When this review has been made and a final decision taken, implementation will be proceeded with.”
“It does not accept the recommendation that officers with 20 years' service should retain some pension rights on leaving the service prematurely. The Commission has not made any recommendations in respect of quantum of pensions to he retained in such instances, it is difficult to decide on this. If the quantum were fixed at too low a level, the new benefits may well be regarded as derisory. On the other hand, any substantial concession on this point may lead to an undesirable exodus of talent from Government employment into the private sector. Accordingly, the Government has decided that, subject to the approval of the President acting on the advice of the Cabinet, officers with 20 years of pensionable service may be retired on full pension rights without recourse to disciplinary proceedings as administered by the Public Service Commission in the case of retirement in the public interest. This will enable Government to retire officers whose continued employment would be of no advantage to the service without reducing the market value of the officer in his search for employment in the private sector. The Commission covered a wide field and made recommendations on a large number of detailed points. For instance, it recommended that a Pay Research Unit be established to undertake a continuous study of relative pay in jobs within the government service and between government service and the private sector. It made recommendations on translators fees, medical benefits, rentals paid by government employees, privileges of free supply of electricity and water and on numerous other matters. It will not be appropriate for me to enter into each and every recommendation. These will be described in a Treasury paper which will be issued shortly.”
“Another reason is that many officers act in higher posts as a result of pure chance simply because they happen to be on the spot and not because of proven merit. The Government does not accept the recommendation of the Commission that an officer with 20 years' pensionable service should not lose his pension entirely if he were to be dismissed on disciplinary grounds. The Government accepts the recommendation that an officer retired in the public interest should retain some of his pension rights. The Government also accepts the recommendation of the Commission that benefits payable in respect of injury or death arising in the course of duty should be improved. Government does not accept the recommendation of a scheme to provide for widows and dependants of pensioners in view of the fact that the Widows and Orphans Pension Scheme, which provided for this, was unpopular and was abolished as a result of representations from staff unions. As regards retirement benefits, the Commission made far-reaching recommendations on changes to the Pensions Rules. It noted that it would not be practicable to offer provident fund benefits in addition to the pension scheme. The Commission also expressed the opinion that the quantum of pensions payable under present regulations is adequate. However, the terms of eligibility, in its opinion, are too rigidly determined by the present Pensions Ordinance. It recommended a more flexible system. In particular, it recommended that a pensionable officer who leaves the service after 20 years of pensionable service should not lose his entire pension, even if he has not reached the age of optional retirement. Government accepts the need for more flexibility in the present Pensions Ordinance.”
“The question of Specialist pay for Administrative Specialists in Superscale Grades G and E needs to be further considered. The Commission has made no recommendations for increases in these grades. This may lead to difficulties in that a. Specialist on posting to an Administrative position will suffer reduction in pay. As a result of this policy, Administrative positions in the Medical Service may be held by the less meritorious so far as medical skill is concerned. Of course, no one will argue that Administrative skills and Medical Specialist skills go together. Nevertheless, the virtual exclusion of best specialist skills from making any contribution to administrative efficacy is disturbing. There is the added complication that if doctors performing administrative functions in Grade G and E posts were to get very substantial allowances, as compared with their counterparts in the Administrative Service, they would, in fact, be getting more pay for doing the same type of work. The Ministry of Finance and the Ministry of Health are working together to find a mutually satisfactory solution to this very tricky problem. The Commission recommended that where an officer is acting in a post because it is vacant and not because the incumbent is on leave, he should draw acting allowance of the full difference in salary up to a maximum of $250 a month. The Government accepts that acting allowances should be increased to two-thirds of the difference in salary up to a maximum of $250 a month as against half the difference and a maximum of $200 p.m, at present. It does not agree to the full difference being paid on the grounds that if an officer is considered fit to receive the full difference he should have been promoted substantively.”
“The shortage of doctors and dentists which doubtless induced this recommendation of the Commission has come to an end, and doctors and dentists in the Government service will convert in the normal way to the new salary scale of $1,100x50-1,400/1,450x50-1,850 p.m. The Commission expressed the opinion that the present quantum of Specialist Allowance fixed in 1958 needed revision. Specialists in the Government medical service represent a group of highly qualified and experienced personnel who are responsible for the maintenance of high standards of medical practice not only in Government service but outside it. Evidence was given to the Commission that the personal emoluments did not provide a sufficient incentive for these officers to remain in the Government service. The Commission recommended that the existing rates of Specialist Allowance for Medical and Dental Specialist should be increased. They further recommended that the existing classification of Specialist into the categories of Clinical. Non-Clinical and Administrative Specialist be reduced to two categories of Clinical Specialists with the same allowance and Administrative Specialists. For Superscale G Specialists, the allowance of $250 p.m. for Clinical Specialist and $200 p.m. for Non-Clinical Specialist should be raised to $500 p.m. In respect of Superscale E, the allowance of $500 for Clinical Specialist and $350 for Non-Clinical Specialist should be raised to $750 p.m. No increases were recommended for the Administrative Specialist in Grades G and E, but the allowance for the Administrative Specialist in Superscale C has been recommended to be raised from $200 to $500 p.m. Government accepts this recommendation except in respect of Administrative Specialist posts in Superscale C.”
“, the Permanent Secretaries, occupying substantive posts on Superscale 'C' cannot climb further. Therefore, it is necessary to revise the structure of the top Superscale posts. The Government proposes to introduce two Superscale posts. Superscale 'B' with a total pay of $2,700 a month and Superscale 'A' at $3,000 a month. Substantive holders of Superscale 'C' appointments will be considered in the forthcoming promotion exercise for promotion to Superscale B and A. The introduction of these Superscales B and A would mean that the salary structures of the top echelons of other services, for example, the Judicial Service and some senior appointments outside the normal ranks of the civil service, such as the Chairman of the Public Service Commission, will have to be revised. In respect of Medical and Dental Officers, the Commission recommended as follows: 'While it is reasonable in our view to have some regard to the standard of remuneration of general practitioners and consultants in private practice, we think that the type of work and conditions of employment of those in the private sector differ materially from most of those employed in the Government service. The pattern of the working life of a private practitioner is entirely different from those performed by Government Medical and Dental Officers.' Nevertheless, it was the opinion of the Commission that "there is considerable weight in the arguments mentioned above for improved salary scales for Medical and Dental Officers in order to attract and retain officers in the Service". For these officers, the Commission recommended salary scales which provide for a substantial jump after the bar in the third year of service. Government does not accept this recommendation of the Commission.”
“Related salary scales in Division I will follow a similar pattern maintaining approximately the same differential with the Administrative Service Scale. Details of all salary scales and method of conversion will be set out in a forthcoming Treasury Circular. When the whole country is being enjoined to put in additional effort without thought of recompense, this is not the proper moment to introduce a general increase in the pay of top civil servants, however much they may deserve it. At the same time, it is necessary that the Government takes certain action to ensure that there is no drift of the best talent in the civil service into private enterprise. Government proposes to achieve this by two measures. First, to carry out more frequent promotion exercises. There is a large number of posts in the civil service establishment which are not substantively filled in the upper echelons of the service. This is because of the policy of the Public Service Commission to promote only officers of outstanding merit. Everyone will agree that this policy of the Public Service Commission is a sound one. Nevertheless, nearly 10 years have passed since the Malayanisation exercises were completed. University graduates recruited into the civil service since then and others promoted from the ranks into the Administrative Service have by now ample time and opportunity to demonstrate their worth. This may be the appropriate occasion to carry out an extensive promotion exercise. In this way, the meritorious will be rewarded without recourse to a general increase in salaries which will benefit both the outstanding officer as well as those not deserving of reward. This policy has its limitations. Officers on the top ladder, i.e.”
“, for senior staff were more favourable in the private sector. The Commission had no doubt that fringe benefits were considerable and attractive in the private sector, but felt that the present differences between the civil service and the private sector in this matter had to be accepted. In respect of the Administrative Service, the Commission reported as follows: 'The evidence we received from the private sector on salary scales paid to their middle Executive Grades covering a wide variety of occupations indicated that the salaries paid to Administrative Officers in Government during the first 3 years of their career compare favourably with those of their counterparts in the private sector, but that thereafter salaries in the private sector are bigger than those paid for Administrative Service Officers.' Also, most witnesses "agreed that industry and commerce nowadays offer better and more opportunities for advancement for a good Honours Degree graduate than exist in the Civil Service". In the light of this evidence, the Commission recommended additional increments at the maximum to the salary scale for Administrative Officers. It is with regret that I have to inform the House that the recommendations of the Salaries Commission in respect of Superscale Officers and Division I Officers are not acceptable to the Government. Salaries of Superscale Grades will remain the same as at present, except that variable allowances will be consolidated into pensionable pay. For the Administrative Service the Commission recommended a scale as follows: - $800 x 50 - 900/950 x 50 - 1,050/1,200 x 50 - 2,000 p.m. The Government proposes the following scale : - $900 x 50 - 1,000/1,050 x 50 - 1,400/1,450 x 50 - 1,850 p.m.”
“The Government considers that pensionable employees in Division IV salary scales and promotion posts attached to Division IV salary scales, should receive an increase of approximately this proportion, in instances where the revised salary scales have not given these increases. I now come to the recommendations for general increase in Division I salary scales and in Superscale posts. The Commission reported that "it was the general view of both private and official witnesses that the current level of remuneration and other service conditions relating to Division I Superscale Officers, including Permanent Secretaries, Heads of Departments and Specialist Officers at these levels were not sufficiently competitive in relation to salary and conditions of service obtaining in the private sector". The Commission were satisfied that this general view was correct, and taking all the evidence into account, they were satisfied that there was a case for an increase in the pay of the higher civil servants, and recommended salary increases for officers in the Superscale grades as follows: Superscale Grade C: an increase in existing all-in pay of $2,350 a month to $2,750. Superscale Grade D: an increase in existing all-in pay of $2,170 a month to $2,500 Superscale Grade E: an increase in existing all-in pay of $2,070 a month to $2,350. Superscale Grade F: an increase in existing all-in pay of $2,020 a month to $2,250. Superscale Grade G: an increase in existing all-in pay of $1,920 a month to $2,150. This represents increases ranging from $230 p.m. to $400 p.m. at the top. The Commission commented that most of the witnesses who appeared before the Commission stated that fringe benefits, such as free cars, interest-free loans for certain specific purposes, entertainment allowances, etc.”
“The Commission found the present schemes of service for the Technical Grades to be inadequate and unsatisfactory and recommended an examination and re-organisation of these services. This recommendation is accepted and it is proposed that this review be conducted by an ad hoc Committee comprising the Deputy Secretary (Establishment) as Chairman, and representatives from the Telecommunications Department, Public Works Department and the Broadcasting Department, all of whom should be technical personnel, as members. This Committee could be asked to examine and recommend a suitable structure for the technical grades and the appropriate salary scales for these grades. I referred a moment ago to Division IV grades. The Commission considered the existing scales which have annual increments varying from $2 per month to $8 per month to be unrealistic. The Commission considered that increments on the salary scales should be of meaningful size and in the new scales for Division IV, the increments range from $5 to $15. Most of the recommended salary scales for Division IV show some increases at the maximum. The Government accepts this recommendation of the Salaries Commission. The Government proposes to go further than the Salaries Commission in respect of Division IV salary scales. Hon. Members know that contributors to the Central Provident Fund will, in the course of the next few years, receive additional benefits by way of enhanced contributions to the Fund by the employer. In effect, this means that the Government's daily-rated workers as compared with the monthly-paid pensionable employees will enjoy additional benefits, which will total 5 per cent of their pay. Employees of private firms contributing to the Central Provident Fund will also receive these benefits.”
“, Leading Firemen and Firemen, those employed in the Singapore Fire Brigade and their counterparts in the Airport Fire Section should be on the same salary scale. The Government accepts this recommendation. Pending a review of salary scales by a future Salaries Commission, which it recommended, the Industrial Arbitration Court made certain interim awards in respect of outstanding cases before it. The awards are as follows: (1) Midwives: (a) Pupil Midwives: Temporary Allowance of $6 p.m. after the first year of training; (b) Staff Midwives: Temporary Allowance of $12 p.m. (c) Senior Midwives: Temporary Allowance of $15 p.m. (2) Timescale Clerks in the Postal and Telecommunications Department: Interim Allowance of $15 p.m. (3) Customs Officers: (a) Customs Officers: Interim Allowance of $10 p.m. (b) Customs Officers: Interim Allowance of $15 p.m. Senior Grade. Since these interim allowances were awarded pending the establishment of new salary scales for the grades concerned by the Salaries Commission, it is logical that these allowances should disappear as and when the new salary scales are implemented. In respect of Midwives and Timescale Clerks in the Postal and Telecommunications Department, the Commission made this clear, when it recommended that these officers should transfer to the new salary scales recommended for them without the addition of this interim allowance. Although the Commission is silent in respect of Customs Officers, it is logical to infer that the same principle of conversion should apply to them. Where officers prefer to retain the interim allowance, they will be permitted to do so but they will have to remain on the unrevised scales with variable allowance personal to themselves.”
“For four categories of Teachers-in- Training, that is, the School Certificate Teachers-in-Training, Technical Teachers-in-Training, Domestic Science Teachers-in-Training and Mixed Farming Teachers-in-Training, for these four grades they recommend a pay of $l90xl0-2l0. For Higher School Certificate Teachers-in-Training $295: $315; for Craft Trainee Teachers-in-Training $335; for Teachers-in-Training with a Technician Diploma $425: $445: $465. For Trained Teachers, who are Non-graduates, the Commission recommends a common salary scale of $295x20-335/385x20-505/560x25-660/750x35-925 p.m. into which all non-graduate trained teachers would be offered the option to convert. This new salary scale is based on the new Teachers' Training College trained teacher's scale with an additional increment. The Government accepts this recommendation. Where teachers refuse the option offered they will be allowed to remain on the existing salaries with variable allowance personal to themselves. The Commission is of the view that there should be no distinction between members of the rank and file of the Regular Police Force, the Guard and Escort Unit and the Airport Auxiliary Police Force, and recommends that the three Units should be placed on the same salary scales and they should receive the same training. These recommendations are not accepted. The whole object of having a Guard and Escort Unit is to have a less expensive force to perform simpler duties which require simpler training. The same is true of the Airport Auxiliary Police Force. In respect of the Fire Service, the Commission recommended that so far as the subordinate staff are concerned, i.e.”
“It is also proposed to accept the improved gradings for the posts of the Library Service of Director, Deputy Director and Librarian and the improved salary scales for Higher Library Officers and Library Officers as recommended by the Commission. The salaries payable to the Director, Deputy Director and Librarian will be those appropriate to the grades as recommended, which will be different from that actually shown in the Report in view of the decision of Government not to increase salaries in Division I. The Commission recommended that the salary scales of Honours and Pass graduates in the Education Service be improved. They recommended a new salary scale for each of the grades of graduates on the basis that Division I salary scales will be improved. The Government accepts the recommendation of the Salaries Commission for improvements in salary scales of Honours and Pass graduates in the Education Service relative to the general run of salary scales. Since Government is not accepting the recommendation of the Commission for a general increase in Division I salary scales, the improvement in salary scales in the Education Service will take this into account. A differential of $150 a month is observed throughout the length of the scales of Honours and Pass graduates in the Education Service. For Honours graduates the salary scale will be as follows: - $700x50-800/850x50-l,250/ 1,300x50-1,500 For Pass graduates the salary scale will be $550x50-650/700x50-1,150/1,200x50-1,350. The Salaries Commission recommends the following salaries for Teachers-in-Training who are Non-Graduates.”
“First, the Commission, after weighing representations made by staff associations or staff representatives, recommended increases in salary scales of specific posts. Second, the Commission recommended a general increase in Division I salary scales and in all Superscale posts in that Division. Third, the Salaries Commission drew attention to the inadequacy of salary scales of the technical grades, though it made no recommendations in this respect. I will deal with each group of recommendations in turn. The first deals with certain specific salary scales. These relate to the following: - (i) The Medical Ancillary Service and the Nursing Service; (ii) The Library Service; (iii) Honours and Pass Graduates in the Education Service; (iv) Guard and Escort Unit, the Airport Auxiliary Police; (v) Fire service. In respect of the Medical Ancillary Service, which comprises Almoners, Dieticians, Occupational Therapists and Radiographers, the Commission did not consider the Executive Officers salary scale, on which they are now placed, the right one and recommended an improved scale. The maximum of the recommended salary scale, which is $925 p.m., is higher by about $40 than the all-in salary scale at the maximum of the present scale. Similarly, the Commission did not consider that the Nurses salary scale should be related to the salary scale of Clerical Officers, and also recommended an improved scale. In the case of Nurses the maximum on the scale is about $48 per month higher than the present all-in maximum. An increase at the maximum of $36 has also been recommended by the Commission for Assistant Nurses and Midwives. The Government accepts in full the recommendations on improved salary scales for the Medical Ancillary Service, Nurses, Assistant Nurses and Midwives.”
“No doubt the Commission was moved by considerations of economy in requiring that officers of different marital status should enter at different points in the new salary scales. The Government is of the view that in this consolidation exercise, since the purpose is to remove anomalies arising from marital status, conversion should be calculated without the limitations imposed by marital status. This will result in an increase in total emoluments payable to women officers, bachelors, and married officers without children. The additional cost is estimated at $¼ million a year. As part of the consolidation exercise, the Commission has streamlined the general salary structure. The number of salary scales has been reduced. For instance in Division I, the existing 34 salary scales have been replaced by six basic scales and 22 scales which are segments or parts of the basic scales. In Division II, the existing 44 salary scales are replaced by 14 basic scales plus 13 scales which are segments or parts of basic salary scales. A similar tidying up takes place in respect of Division III and Division IV salary scales. In the case of Division IV salary scales, the process of tidying up has benefited, perhaps quite adventitiously, the holders of a large number of pasts. I shall refer to this subject at a later stage. The Government accepts the general replacement of existing scales in the new salary structure subject to modifications in respect of particular salary scales with which I will deal in detail when I come to them. The Commission made recommendations in respect of salaries. These recommendations fall into three groups.”