CIVIL SERVANTS (Establishment of loan scheme to meet urgent legitimate expenses)

Inche Abdul Aziz Karim asked the Minister for Finance if the Government will establish a fund from which loans at reasonable rates of interest can he given to civil servants to meet funeral, medical and other legitimate expenses.

Mr Tang See Chim (for the Minister for Finance): Mr Govindasamy, Sir, There are already more than 10 cooperative thrift and loan societies in the public service, including some run by registered trade unions, which exist principally to encourage thrift and grant loans to civil servants who are in genuine need of financial assistance in circumstances including those mentioned by the Member for Kallang. In addition, personal advances on salaries have been given to civil servants in special circumstances where the merits of the case justify the granting of such advance. For instance, there have been cases, amongst others, where personal advances were granted to officers to meet medical expenses and tuition fees for courses undertaken on their own. These cases should continue to be considered on their individual merits.

It is not, therefore, proposed to formalise any Government loan scheme, as loans under such a scheme may be taken for granted and would, in due course, encourage improvidence and discourage savings and membership of co-operative societies. The necessity of putting aside some savings for the rainy day is one which should be especially emphasised for civil servants.