LEAVE ALLOWANCES (Request for revision)

Mr P. Govindaswamy asked the Minister for Finance, in view of the consolidation of 1973-77 National Wages Council allowances into salary scales for civil servants, if he will consider revising the existing fixed leave allowances under the 1973 Leave Scheme.

The Senior Minister of State for Finance (Mr Goh Chok Tong) (for the Minister for Finance): Mr Speaker, Sir, when the Civil Service Leave Scheme was amended in 1973 to allow civil servants to commute their vacation and medical leave into pay, the matter was discussed with unions representing the public service. Explicit agreement was reached that the rates of leave allowances would remain fixed and unchanged, notwithstanding any subsequent general salary revisions. The compensation for deducted vacation leave was at the rate of one day's pay for each day of vacation leave whilst for medical leave, the rate of one day's pay for six days medical leave. The quantum of leave allowance, using the factor of 286 work:ing days per year, worked out to percentages of salary, ranging from 6% to 10% for Division I to Division IV officers.

This Leave Scheme was effective from January 1973. The first payment of NWC allowances was in July 1973. Hence, NWC allowances did not feature in the computation of the Scheme.

I think it would be wrong to revise the leave allowances with every revision of salaries. It would leave the matter open for all time and place an onerous liability on public funds. My Ministry is therefore not prepared to consider any revision of leave allowances under the 1973 Leave Scheme.

Mr P. Govindaswamy (Anson): Mr Speaker, Sir, the Hon. Senior Minister of State explained that it would be wrong to revise the leave allowances, and I think it is right. But I want to know why newly recruited clerks are getting $30 leave allowance when the old clerks are getting only $20. Can the Senior Minister of State enlighten me on this?

Mr Goh Chok Tong: Sir, I am not aware that newly recruited clerks are given $30 leave allowance while old ones are given $20 leave allowance. I thought that the quantum of compensation was fixed in 1973 and new recruits are given the option to either opt for the old scheme including the leave eligibility applicable under the old scheme or the new scheme with the leave allowances fixed in 1973.

Mr P. Govindaswamy: Sir, I do understand what it means. But I am talking about a situation where there could be an anomaly between the leave allowances paid to new clerks and old clerks. That is the reason why I have tabled the question on whether the Minister will consider revising the leave allowances.

Mr Goh Chok Tong: Sir, as I said, I am not aware that there is an anomaly. But nevertheless to satisfy the Member for Anson, I will look into the matter and see whether there is such an anomaly.