FIRST SUPPLEMENTARY MAIN ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1985 TO 31ST MARCH, 1986 (Paper Cmd. 4 of 1986)

Order read for consideration in Committee of Supply [Allotted Day].

[Mr Speaker in the Chair]

The Chairman: First Supplementary Main Estimates of Expenditure for the financial year 1st April, 1985 to 31st March, 1986, contained in Paper Cmd. 4 of 1986.

Head W - Pensions - Mr Ng Kah Ting.

Head W -

Mr Ng Kah Ting (Punggol): Sir, I beg to move,

That the sum to be allocated for Head W be reduced by $10 in respect of Subhead Code WA-02.

Sir, in moving this amendment I would just like to seek further elucidation from the Hon. Minister for Finance with regard to the need to provide a sum of $3.33 million as contained in Paper Cmd. 4 of 1986, ie, the First Supplementary Main Estimates of Expenditure for the financial year 1st April, 1985 to 31st March, 1986. The explanation as stated therein, in my view, does not give a clear picture of the need to appropriate this sum of $3.33 million; for example, the kind of staff who have been "superannuated following the completion of engineering projects and improvement in work procedures, and contracting out of airport maintenance services." In this respect, could the Hon. Minister enlighten this House why such an expenditure could not be foreseen at the time of preparing the budget for FY 85? Thirdly, Sir, may I ask the Minister whether there will be other supplementary expenditure needed.

Since it concerns Head W, which is Pensions, may I, with your kind indulgence, make a comment on the recent announcement by the Ministry of Finance? A letter addressed to the Hon. Secretary, Government Pensioners Association, dated 1st March 1986, was copied to me and the Accountant-General for his notice and necessary action. I note that there will be an increase of $25 to the Singapore Allowance, ie, from $75 to $100, to those pensioners whose gross pensions do not exceed $850 per month. I accept the rationale of the argument as contained in this statement but what I cannot agree with is the uncalled for remark contained in paragraph 2, third last line, and I quote:

'Therefore, on strict technical grounds, there is no justification to increase the Singapore Allowance at this time.' And in the next breath, first line of the third paragraph, it states:

'Nonetheless, the Minister for Finance feels that there is a case for increasing the allowance on compassionate grounds.' I totally agree with the second observation. We have been talking so much about courtesy. Let us show it. I do not think the first part of that observation is necessary. Sir, I submit that this is uncalled for and unfortunate. I hope the Government will not allow its bureaucracy to say things or do things which hurt people's feelings even though the Allowance has been increased by 33 1/3%. It is appreciated but let the appreciation stand.

I hope the Minister will take note of this and comment on my remarks.

The Minister for Finance (Dr Hu Tsu Tau): Sir, the Pensions head of expenditure needs to be supplemented mainly because of payment of ex-gratia retrenchment benefits to former daily-rated employees of the Public Works Department (PWD). The services of 179 PWD DREs were no longer required following the completion of the second runway project at Changi Airport and following the contracting out by the Civil Aviation Authority of Singapore of maintenance works at the airport. Another 59 DREs became redundant after the implementation of the scheme to decentralize responsibility for minor works and repairs to user departments.

Retrenchment action was only taken after all efforts have been made to redeploy the redundant staff to other departments and statutory boards. My colleague, the Minister for Labour, has during the recent debate on the President's Address given this House a detailed account of the steps taken to emplace the redundant staff in other jobs. It is therefore not necessary for me to elaborate further on this.

Retrenchment action was taken well after the fiscal year 1985 budget for the Pensions head of expenditure has been finalized. In fact, of those retrenched, 108 were served notice of termination in December 1985. Funds are therefore not available in the fiscal year 1985 budget to meet the retrenchment payments and supplementary provision has to be approved by Parliament.

These ex-gratia retrenchment benefits, like pensions, gratuities and all other superannuation benefits, are chargeable to the Pensions head of expenditure. However, unlike pensions and gratuity payments which are statutory expenditure chargeable directly to the Consolidated Fund, the ex-gratia payments are not provided for under the Pensions Act or related legislation. They have to be met from funds voted by Parliament under the Pensions head of expenditure.

As to the comment made by the Member for Punggol about the statement issued together with the announcement of the Singapore Allowance, I regret, Mr Speaker, Sir, that I am somewhat mystified at his emotional response to the one sentence which explained the technical grounds for making the change. If it has conveyed the feeling which he seems to express, then I would tender my apologies, but it was certainly not intended in that way. It was merely introduced to explain the reasons why the pension payments could not be varied but that, on compassionate grounds, even though the inflation over the intervening period was not large, an adjustment upwards of the Singapore Allowance was permitted.

Mr Ng Kah Ting: Sir, I thank the Hon. Minister for his kind reply. I do not think the apology was necessary anyhow.

But I would like to ask him whether the Civil Aviation Authority, which is now in charge of the Changi Airport, could not redeploy these 59 DREs, as stated by him, and at the same time meet such an expenditure.

Dr Hu Tsu Tau: Mr Speaker, Sir, I cannot speak on behalf of the Civil Aviation Authority. I have to assume that the retrenchment action was taken after due consideration of its impact but I would certainly convey his sentiment to the Authority.

Mr Ng Kah Ting: Mr Speaker, Sir, in view of the assurance from the Minister for Finance, may I seek leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $3,330,000 for Head W ordered to stand part of the First Supplementary Main Estimates of Expenditure for the financial year 1st April, 1985 to 31st March, 1986.

Question, "The sum of $3,330,000 shall be supplied to the Government under the head of expenditure for the public services shown in the First Supplementary Main Estimates of Expenditure for the financial year 1st April, 1985 to 31st March, 1986 contained in Paper Cmd. 4 of 1986", put and agreed to.

Resolution to be reported.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Dr Hu Tsu Tau: Mr Speaker, Sir, I beg to report that the Committee of Supply have come to a certain resolution.

Resolution reported -

"The sum of $3,330,000 shall be supplied to the Government under the head of expenditure for the public services shown in the First Supplementary Main Estimates of Expenditure for the financial year 1st April, 1985 to 31st March, 1986 contained in Paper Cmd. 4 of 1986."

Dr Hu Tsu Tau: Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolution.

Question put, and agreed to.

Resolution accordingly agreed to.