PARLIAMENTARY PENSIONS (AMENDMENT) BILL

Order for Second Reading read.

2.50 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

There is one underlying objective in the recent exercises of increasing Members' allowances and Ministers' salaries and of providing for their pension. That underlying objective is to remove the financial disincentive in getting men of ability and integrity to undertake political life.

The proposed increase in Members' allowances and Ministers' salaries is a further step in this direction. The first step was made when the Government passed the Parliamentary Pensions Act in June last year.

In moving the Second Reading of the Bill, the Minister for Finance said, and I quote from Hansard, Vol. 29, No. 1, col. 18:

`We cannot expect to get future leaders of calibre on the cheap, whatever was the case in the past, and it is as well that the people of Singapore realize and accept this fact. Unless Singaporeans want to settle in the future for a mediocre crack-pot or corrupt leadership, they must not believe they can continue to expect men of ability in future to suffer severe financial sacrifices in pursuit of a hazardous political career. In my opi nion, a mediocre crack-pot or corrupt political leadership will ruin this country in an incredibly short time, and such ruination could be final, complete and permanent, as Singapore has no natural resources or a large economic base on which to effect a recovery.'

The Minister for Finance concluded, and I quote:

`And to ensure the continued prosperity and success of Singapore, the cost of the pension is a small price to pay.'

The Parliamentary Pensions Act has now been in force for about a year. In this time, it has been found that some of the provisions of the Act are too restrictive and need modification.

For instance, the Act provides that to qualify for pension, a Member would have to put in at least ten years' reckonable service and be not less than fifty years of age. This means that a Member would have to serve not less than two full terms of five years each in order to qualify for pension. A Member who serves for two terms, any of which is less than the full term of five years, would therefore not be eligible for a pension unless he is elected for a third term.

In Australia, a Member of Parliament can qualify for a pension at the age of forty years, while in New Zealand Members of Parliament are entitled to pensions after nine years' service and on attaining the age of fifty years. In Canada, on the other hand, a pension is paid to a Member of Parliament who serves more than two terms.

It is therefore proposed to amend the Act so that a Member who has put in nine years' reckonable service, instead of ten, would qualify for pension. The qualifying age for the grant of pension is also being reduced from fifty years to forty-five years.

At present, only a Speaker who is also an elected Member of Parliament may qualify for pension, and it is proposed to amend the Act so that a Speaker who is not an elected Member may also qualify for pension. It is only reasonable that a person who serves in Parliament as Speaker, whether or not he is an elected Member, should be eligible for a pension for the service he puts in.

There may also be cases where persons who are Members of Parliament subsequently cease to be Members without having served the minimum period to qualify for pension but who, nevertheless, on ceasing to be Members, may hold public offices such as High Commissioners or Ambassadors for several more years. Such persons should be adequately provided for in their declining years. It is therefore proposed to amend the Act so that a person who has completed less than nine years' reckonable service in Parliament, but the aggregate of whose service in Parliament together with the service in a public office makes up nine years, would qualify for pension under the Act. For this purpose, "public office" is to be defined as the office of High Commissioner or Ambassador or such other office as the President may, from time to time, declare in the Gazette.

This Bill, when passed, will be made retrospective to 1st July, 1969, the date when the principal Act came into operation, to enable the provisions of the principal Act and the amending Act to dovetail.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Tang See Chim].

Bill considered in Committee.

[Mr Speaker in the Chair]

2.55 p.m.

Clauses 1 to 3 inclusive ordered to stand part of the Bill.

Clause 4 -

Mr Tang See Chim: Mr Speaker, Sir, I beg to move,

In page 2, line 13, to leave out "eight" and insert "nine".

At the First Reading of the Bill, Mr Speaker, Sir, eight years was specified as the qualifying period. As I said in moving the Second Reading, one full term of Parliament lasts for five years; two terms would be ten years. On deeper reflection, therefore, we consider that nine years of reckonable service would be more appropriate. Hence the amendment.

Amendment agreed to.

Clause 4, as amended, ordered to stand part of the Bill.

Clause 5 -

Mr Tang See Chim: Mr Speaker, Sir, I beg to move,

In page 2, line 21, to leave out "eight" and insert "nine".

The same reason as I have mentioned above applies.

Amendment agreed to.

Clause 5, as amended, ordered to stand part of the Bill.

Clause 6 -

Amendments made:

In page 2, line 30, to leave out "eight" and insert "nine". - [Mr Tang See Chim].

In page 2, line 39, to leave out "eight" and insert "nine". - [Mr Tang See Chim].

In page 3, line 22, to leave out "eight" and insert "nine". - [Mr Tang See Chim].

Clause 6, as amended, ordered to stand part of the Bill.

Bill reported with amendments; read a Third time and passed.