DEFENCE SERVICES (PROVISION) Statement

Mr D. S. Marshall asked the Financial Secretary if he will make a comprehensive statement on the financial aspects of the expenditure on armed forces and contributions towards Imperial Defence for the next 5 years.

Mr T. M. Hart: Sir, the provision for defence services which is made in the 1957 Draft Estimates is as follows: - Royal Malayan Navy $ Recurrent Expenditure Personal Emoluments 2,720,270 Other Charges Annually Recurrent 1,275,250 Special Expenditure 307,970 --------- 4,303,490 --------- Royal Malayan Navy-continued $ Capital Expenditure Shipbuilding 500,000 Public Works, Non-Recurrent 445,000 --------- 945,000 --------- Malayan Royal Naval Volunteer Reserve $ Recurrent Expenditure Personal Emoluments 391,790 Other Charges Annual Recurrent 253,220 Special Expenditure 99,700 --------- 744,710 --------- Singapore Military Forces $ Recurrent Expenditure Personal Emoluments 2,324,150 Other Charges Annual Recurrent 1,027,190 Special Expenditure 620,240 --------- 3,971,580 --------- Capital Expenditure Equipment 1,000,000 Public Works, Non-Recurrent 12,000 --------- 1,012,000 --------- Malayan Auxiliary Air Force $ Recurrent Expenditure Personal Emoluments 494,340 Other Charges Annual Recurrent 352,310 --------- 846,650 ---------

The total estimated expediture in these defence services in 1957 is therefore as follows: - Recurrent Expenditure $ Royal Malayan Navy 4,303,490 Malayan Royal Naval Volunteer Reserve 744,710 Singapore Military Forces 3,971,580 Malayan Auxiliary Air Force 846,650 --------- 9,866,430 --------- Capital Expenditure $ Royal Malayan Navy 945,000 Singapore Military Forces 1,012,000 --------- 1,957,000 ---------

In making provisional allocations of funds for various services for the next five years, it has been assumed that by 1961-2, on the basis of In making provisional allocations of funds for various services for the next five years, it has been assumed that by 1961-2, on the basis of existing plans, expenditure on defence services generally may be of the order of $18 million a year. This estimate includes both capital and recurrent expenditure. However, as the plans for the defence services of Singapore are now under revision, this estimate must also be regarded as subject to revision. It will not be possible to make a new estimate until the revised plans have been finalised.

With regard to contributions to Commonwealth defence, the Contribution to Imperial Defence Ordinance (Chapter 64 of the Revised Edition) prescribes that an annual contribution of $4 million will be made to imperial defence from the funds of the Colony of the Straits Settlements. After the war, when the Settlements of Penang and Malacca became part of the Federation of Malaya, liability for this contribution was apportioned and Singapore's share became $2,628,000. It was then agreed with Her Majesty's Government that this contribution might be devoted to meeting expenditure on the Royal Malayan Navy and special expenditure on the Malayan Royal Naval Volunteer Reserve. In the early years after the war, expenditure on these forces did not come up to the level of the defence contribution and the balances were held in the Royal Malayan Navy Fund for use in future when expenditure on the Royal Malayan Navy and the Malayan Royal Naval Volunteer Reserve increased. This expenditure has increased and the Fund has slowly been run down until now in 1956 it is exhausted.

Mr Marshall: If it please you, Sir, I had hoped by the question to elicit an indication of Government's policy towards defence forces for the next five years, but we have been given what, in fact, is available now on the papers before us. I would ask the Financial Secretary whether Government is considering presenting a White Paper on its defence policy for the next five years. One cannot get a view on one year's working.

Mr Hart: The question, Sir, dealt entirely with the financial implications of defence policy. The question of defence policy itself is not a matter for me to answer.

Mr Marshall: For the next five years.