NWC RECOMMENDATIONS FOR PENSIONERS
Parliament of Singapore · 31 July 1978 · 4th Parliament
Official Report, 31 July 1978, Vol 37, Issue 19 · Open in the reader (summaries, search, filters)
Mr Ivan Baptist asked the Minister for Finance whether he will give sympathetic consideration to implementing the National Wages Council's recommendations or a cost of living allowance to alleviate the hardship faced by pensioners over the past six years due to the steep rise in the consumer Price Index from 100 in November 1972 to 155.9 in May 1978.
The Senior Minister of State for Finance (Dr Tan Eng Liang) (for the Minister for Finance): Mr Speaker, Sir, the National Wages Council recommendations apply only to the active labour force. They have no relevance to pensioners who have retired from the active work force and are rewarded by the pension benefits which are paid to them in their retirement.
The hon. Member will recall that in March 1974, Government approved the grant of an ex-gratia allowance of a minimum of $15 per month and a maximum of $30 per month to pensioners resident in Singapore whose pensions are below $650 per month. This was in recognition of the abnormal inflationary situation at that time. Since then, there has been no significant rise in the Consumer Price Index.
Mr Ivan Baptist: Mr Speaker, Sir, does the Hon. Senior Minister of State not believe that a rise from 100 to 155.9 in the Consumer Price Index is significant?
Dr Tan Eng Liang: Mr Speaker, Sir, the Consumer Price Index at constant prices in 1972 was taken as 100. In 1973 it was 117.7. In 1974 it went up to 144. That was the period when the ex-gratia allowance was given. In 1975 it was almost the same, 147.7. In 1976 it was 144.9. In 1977 it was 149.5. I am suggesting here that between 1974 and 1977 there was no significant increase in the Consumer Price Index.
Mr Ivan Baptist: Mr Speaker, Sir, does the Hon. Senior Minister of State not realise that the increase in the ex-gratia allowance that was given in 1974 was just 5%?
Dr Tan Eng Liang: Mr Speaker, Sir, I am not in a position to debate with the hon. Member whether or not the 5% increase given in 1974 was adequate. But if he feels that the situation now warrants another increase, perhaps we can have a look at the position.
Dr Augustine Tan: Mr Speaker, Sir, just as a matter of interest, what would the Hon. Senior Minister of State think would constitute a significant increase in the cost of living?
Dr Tan Eng Liang: Mr Speaker, Sir, I really do not know the right answer.
Source: Singapore Parliament Official Report (Hansard) for 31 July 1978. Republished on SGParliament.