PUBLIC UTILITIES BOARD (Results of salary consolidation exercise)

Mr Low Yong Nguan asked the Prime Minister (a) if he will ascertain from the Public Utilities Board (i) how many officers of the Board have had their take-home pay reduced in the recent salary consolidation exercise; and (ii) how many officers have had to pay arrears to the Municipal Provident Fund in excess of their monthly salary; and (b) if he is satisfied that as a result of the exercise there have been improvement and simplification in the salary structures.

Mr Lim Kim San (for the Prime Minister): Mr Speaker, Sir, the exercise on consolidation of salaries was to integrate the basic salary with the variable allowance into an all-in salary; in other words, what were allowances before have now been incorporated into the salary proper. As donation and contribution to the Provident Fund will be based on the consolidated salary, some 1,389 out of a total of 2,756 officers will have their take-home pay reduced. There is, however, an increase in the gross emoluments drawn by these officers because of the larger amount of donation made by the Board to the Provident Fund. For the 30-month period from 1st January, 1969, the total increase in the Board's donation to Provident Fund would amount lo 51,350,700, averaging about $40,000 a month.

Some 79 out of 839 officers who ate members of the Municipal Provident Fund have to pay arrears in excess of their monthly-consolidated salaries to the Fund covering the 30-month period. However, they have the option to pay these arrears in one lump sum or by 12 monthly instalments.

The result of the exercise on consolidation has been a reduction of 88 basic salary scales of senior, junior and subordinate officers grades to 25 key scales.

With the consolidation of salaries, emoluments drawn by the staff are based on services rendered, irrespective of sex or marital status, a principle recommended by the Harvey Commission and accepted by Government.

The improvement in salary and salary structure is reflected by the fact that 93.1 per cent of monthly paid staff, (that is, 2,756 out of 2,961 officers) have opted to accept the new consolidated salaries.

Mr Low Yong Nguan: Sir, in the case of officers opting to pay their arrears to the Municipal Provident Fund in instalments, can the Minister let us know whether interest has been added for paying such arrears in instalments?

Mr Lim Kim San: Mr Speaker, Sir, we do not believe in giving anything f tee. We are charging six per cent interest on the loan. This is cheaper than they can get anywhere.

Mr Low Yong Nguan: The point is this. The arrears have been accumulated not because of the fault of the officers, it is due to the delay in the implementation of the consolidation which was recommended some two and a half years ago. Therefore, how can the P.U.B, justify its action in adding interest to the arrears which should have been paid long ago if they had been more efficient in their consolidation exercise?

Mr Lim Kim San: Mr Speaker, Sir, the consolidation exercise did not depend upon one party. It was arrived at and agreed upon after long negotiations with the officers. So if the P.U.B, is to be blamed, then I say the officers are to be equally blamed. On the whole, they gain; they do not lose. As I have pointed out, the Public Utilities Board is out of pocket by about $40,000 a month. Let me tell the Member here that if I had my way, it would not have been backdated to 1st January 1969. It is just because the Board made an error in promising the staff that consolidation would be backdated to 1st January 1969. The question of backdating is one on which I hold very strong views indeed.

Mr Low Yong Nguan: There should have been no backdating, Sir.

Mr Lim Kim San: Mr Speaker, Sir, an option was given to the officers whether to accept consolidation or not. Whether it should be backdated to 1st January, 1969, or not is something which was forced on me. I would say that most of the P.U.B, officers supported backdating. They wanted it to be backdated because they would gain in the long run. Consolidation, in the majority of cases, means an increase in total emoluments though the take-home pay would be less. If I had known earlier that the Member would prefer not to have it back-dated to 1st January 1969, I would have conscripted his services and probably the P.U.B, could have saved quite a lot of money.

Mr Low Yong Nguan: If the P.U.B, had been more efficient in getting the correct views, Sir, ---

Mr Speaker: Is the Member asking a supplementary question?

Mr Low Yong Nguan: No, Sir.