SUPPLEMENTARY PROVISION (Sessional Paper No. Cmd. 60 of 1956)

2.47 p.m.

The Financial Secretary (Mr T. M. Hart): Mr Speaker, Sir, I have His Excellency the Governor's authority to move,

That this Assembly resolves that the sum of S1,457,350 shall be supplied to the Government under the heads of expenditure and for the services specified in the Schedule contained in Sessional Paper No. Cmd. 60 of 1956.

Sir, perhaps the most important items in this paper are Nos. 359 and 360. These seek provision to enable the revision of service pensions to be implemented. The question of the revision of service of pensions has been outstanding for some time and the Labour Front Government undertook to examine the matter shortly after taking office. At that time, a committee of the Federation Government was already engaged in examining the matter. Pension revision has always been taken on a pan-Malayan basis and it was decided to await the outcome of this examination before taking action in Singapore.

The Federation committee reported towards the end of 1955. It recommended a revision of the Adjustment Allowances paid on pensions in issue before August, 1947, and the introduction of a new Supplementary Allowance to all pensions in issue before the 1st of January, 1955. A later committee also recommended the consolidation of all allowances and pensions and the revision of Cost of Living Allowance paid on post-consolidation pensions.

The recommendations with regard to Adjustment and Supplementary Allowances were subsequently accepted by the Federation Government and introduced with effect from the 1st of January, 1955. These recommendations have been drawn up in the light of Federation conditions and it was necessary to find out whether they could be applied in Singapore without modification or whether some modification was required. This examination has now been concluded and it has been decided to follow the Federation recommendations with regard to Adjustment Allowance and Supplementary Allowance in broad principle.

The Adjustment Allowance introduced in 1950 with effect from 1947 rose to a maximum of $25 per mensem on pensions of between $150 per mensem and $180 per mensem and then gradually tapered off until it disappeared altogether on pensions of $320 per mensem and over. The reason why the allowance was tapered off in this way was that it was considered at that time that pensions of $320 per mensem and over were adequate and did not require revision. Subsequently, however, doubt was expressed about the propriety of tapering off the allowance in this way. It was considered that the principle of adjustment should have been carried right through the scale. When Complementary Allowances were introduced in 1953, the principle of tapering off was abandoned and the allowance was applied to the whole scale subject to a ceiling of $60 per mensem on pensions of $400 per mensem and over.

Therefore, as a first step towards the revision of pensions, it is appropriate and it is proposed to remove the anomaly of tapering from Adjustment Allowances and to fix a ceiling of $25 per mensem on all pensions in excess of $180 per mensem.Secondly, it is proposed to introduce a new Supplementary Allowance of the same nature as the revised Adjustment Allowance and Complementary Allowance and to apply it in the manner described in the Cmd.Paper. These two measures will have the effect of adjusting pre-consolidation pensions with post-consolidation pensions in so far as adjustment is practicable and justifiable.

Considerable thought has been given to the question of a date of implementation. As hon. Members are aware, the Government is against back-dating as a matter of principle. On the other hand, the previous Government gave an undertaking to examine the matter of revision sympathetically in April, 1955, and the Federation Government has implemented with effect from the 1st of January, 1955. In the circumstances, it has been decided to implement with effect from the same date in Singapore.

Hon. Members are aware that depreciation in the value of money and in the purchasing power of the dollar has made conditions difficult for Government pensioners and I feel sure that they will support this measure.

Item 361 seeks provision to pay a revised rate of Cost of Living Allowance to pensioners under the Personal Injuries (Civilians) Scheme which has now been approved by the Assembly.

The other items in the paper, Sir, do not call for special comment. A full explanation of the need for the supplement is given in each case.

Sir, I beg to move.

Mr Chew Swee Kee: I second the motion.