CIVIL LIST

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move the motion* standing in my name under item No. 4 in the Order Paper.

• The motion reads as follows:

That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 52), resolves that the Schedule to the said Act be varied by deleting the figures "$56,320", "$686,720", "$220,344" and "$14,773" appearing in the second column thereof and substituting therefore the figures "$187,050", "$823,250", "$200,170" and "$13,750" respectively.

Sir, it is proposed to increase the provision for the Privy Purse, which includes the President's salary, the NWC supplement and the annual non-pensionable allowance, because of certain decisions concerning the President's emoluments. The House will recall that on 20th March, 1973, the Prime Minister announced that the President's official emoluments would be raised from $4,000 per month, which is tax-free, to $12,000 per month, with $4,000 tax-free. The House was informed then that the President did not wish to make use of the increase in his salary. It has been decided, however, that as from FY 75, the President will be paid his full salary of $12,000 per month, but the entire amount will he subject to income tax. Action will be taken to amend the Income Tax Act which specifically provides that the official emoluments of the President shall be tax exempt.

The increase under Class II expenditure is required largely to meet increasing expenses such as the 1974 NWC wage supplement, normal increments and the higher rate of CPF contributions for the President's personal staff. For Classes Ill and IV, however, lesser provisions are now required.

Sir, I beg to move.

Question put, and agreed to.

Resolved.

That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 52), resolves that the Schedule to the said Act be varied by deleting the figures "$56,320", "$686,720", ~`$220,344" and "$14,773" appearing in the second column thereof and substituting therefore the figures "SI 87,050", "$823,250", "$200,170" and "$13,750" respectively.