CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT) BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

The Deputy Prime Minister (BG Lee Hsien Loong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Constitutional Amendment Bill contains three groups of amendments:

(a) Those to amalgamate the Public Service Commission (PSC), the Education Service Commission (ESC) and the Police and Civil Defence Services Commission (PCDSC) into a single Commission, the PSC;

(b) Those to enable the Ministry of Defence and the Singapore Armed Forces to implement the Savings and Employee Retirement Plan, known as SAVER Plan; and

(c) Those to safeguard the appointment of the Chief Valuer.

The Amalgamation of the PSC, ESC and PCDSC

Sir, I turn now to the first category of amendments. The ESC and PCDSC were established in 1990. At that time, the duties of the PSC were extremely onerous, because the Government operated a highly centralised personnel system. The formation of the Education Service Commission and the Police and Civil Defence Services Commission helped to reduce the workload of the PSC. It also enabled more attention to be given to the Education and Ministry of Home Affairs uniformed services, the two largest services in the Civil Service. However, it did not solve the more fundamental problems of the personnel system - over-centralisation, rigidity, slowness in adapting to market conditions.

Therefore, in 1994, the Government made more fundamental changes to the Civil Service personnel management system. The functions of promotion and recruitment, which came under the purview of the Public Service Commission, Education Service Commission and the Police and Civil Defence Services Commission were devolved to Personnel Boards, except for recruitment of Administrative Officers, formal appeals against decisions of the Personnel Boards, and promotion at the very senior levels, namely, at Superscale `D' and above. These included Permanent Secretaries, Senior Deputy Secretaries, and high-ranking officers in the Education and Ministry of Home Affairs uniformed services. The devolution of powers meant that the Commissions could focus on the top talent under their respective purview, while the Personnel Boards took care of the personnel management of the rest of the Civil Service.

Devolution was fully effected on 1st January 1995. It has made Ministries more flexible and responsive, and hence better employers. It has also significantly reduced the workloads of the Education Service Commission and the Police and Civil Defence Services Commission. The Education Service Commission and the Police and Civil Defence Services Commission now meet only once or twice a year, primarily to consider officers under their respective purview for promotion to Superscale D and above. The number of such officers is small. In view of this new situation, it has again become both feasible and desirable for a single Commission, namely the Public Service Commission, to appoint, assess and promote the top officers across the public sector.

The Members of the Education Service Commission and the Police and Civil Defence Services Commission have performed their duties conscientiously and admirably. They supervised the advancement of personnel in the Education Service and the MHA Uniformed Services at a time when the personnel system placed heavy demands on the Commissions. They have been diligent in promoting deserving officers and pro-active in recruitment. Their efforts have been appreciated by the Ministry of Education teachers and the Ministry of Home Affairs uniformed staff. The Government places on record its gratitude to the Education Service Commission and the Police and Civil Defence Services Commission for their significant contributions to the personnel management of the Civil Service since 1990.

This Bill provides for the amalgamation of the three Commissions through the dissolution of the Education Service Commission and the Police and Civil Defence Services Commission, and the transfer of their functions to the PSC. The amendments to effect this are contained in clauses 1 to 6 of this Bill as well as clauses 8 and 9.

The following subsidiary legislation, namely, the Education Service Commission (Delegation of Disciplinary Functions) Directions 1997, and the Police and Civil Defence Services Commission (Delegation of Disciplinary Functions) Directions 1997, will lapse once the two Commissions are dissolved. In addition, there will be consequential change to remove references to the two Commissions in the following subsidiary legislation:

(a) The Public Service (Disciplinary Proceedings) Regulations;

(b) The Public Service (Personnel Boards and Appeals Board) Regulations; and

(c) The Public Service (Special and Senior Personnel Boards) Order. The Savings and Employee Retirement Plan (SAVER)

Sir, I now turn to the second category of amendments at clause 7 which amends Article 114 of the Constitution.

The amendment is to enable the Ministry of Defence and the Singapore Armed Forces to implement its Savings and Employee Retirement Plan, known as the SAVER Plan. The SAVER Plan will be established under the Singapore Armed Forces (Amendment) Bill, 1998. The SAVER Plan will replace the Pension and Contract schemes that are currently open to SAF uniformed officers. The retirement benefits of SAF officers who join the SAVER Plan will no longer be charged on the Pension Fund or the Consolidated Fund, but on a new fund known as the SAVER Fund.

As a result of setting up the SAVER Fund to pay for the retirement benefits of SAF officers, there will be a consequential amendment to the Pension Fund Act, Cap. 224A. This amendment is contained in the Singapore Armed Forces (Amendment) Bill, 1998. The Second Minister for Defence, RAdm Teo Chee Hean, will be explaining further on the SAVER Plan when he moves the Second Reading of the Singapore Armed Forces (Amendment) Bill, 1998.

Appointment of the Chief Valuer

Mr Speaker, Sir, I turn to the third category of amendments at clause 2 which amends Article 22(1) of the Constitution to include the Chief Valuer in the list of safeguarded appointments, namely those for which the office-holder is appointed with the concurrence of the President.

State lands form a substantial part of Singapore's past reserves which are to be protected under the Constitution. An important aspect of protecting land as past reserves is determining its fair market value. Where land is sold by open tender, this is less of an issue. But where state land is alienated directly, for example, to statutory boards like JTC and HDB, rather than by open tender, it is the Chief Valuer who decides what is the fair market value of these State lands. If the Chief Valuer does not render an honest, unbiased opinion, reserves may be surreptitiously drawn down by this route.

The President had expressed his concern last year to the Prime Minister over this issue. The Government studied the matter and agreed with the President's observation. It decided to amend the Constitution to make the Chief Valuer's post a safeguarded appointment. This amendment is provided for under clause 2.

A consequential amendment to the State Lands Act, to make the Chief Valuer a statutory office, is contained in a separate Bill which will be taken up later.

Sir, I beg to move.

Question proposed.

Mr Shriniwas Rai: Sir, I wholeheartedly support the Bill. It is gratifying to note that the Chief Valuer will be another position that will be safeguarded in the Constitution. My only concern is that the proposed State Lands (Amendment) Bill does not have details about his removal from the office in case we find that the person who is appointed is not suitable for the job. Because all we have is his remuneration and other terms would not be altered to his disadvantage. That is the only concern I have, Sir.

BG Lee Hsien Loong: Mr Speaker, Sir, the Chief Valuer's appointment is a departmental appointment. He is appointed like any other departmental officer in the civil service. It is not an appointment for life. If there is any reason to post the Chief Valuer to some other appointment, we can do so, but the President will have to concur.

Mr Speaker: The Question is, "That the Bill be now read a Second time."

A Division will be taken to ascertain that the Second Reading of the Bill is supported by the votes of not less than two-thirds of the total number of elected Members of Parliament, which is 56 Members, pursuant to Article 5(2) of the Constitution. Ring the Division Bells.

Question put, "That the Bill be now read a Second time." Division taken: Ayes, 78; Noes, Nil; Abstention, 1. Ayes Ayes (cont.) Abdullah Tarmugi Mohamad Maidin B P M Ahmad Mohd Magad Neo, Lily Ang Mong Seng Ong Ah Heng Chan Soo Sen Ong Chit Chung Chay Wai Chuen Ong Kian Min Chen, Bernard Othman bin Haron Eusofe Chen Koon Lap, Kenneth Ow Chin Hock Chen, Peter Peh Chin Hua Chen Seow Phun, John Ravindran, R. Chew Heng Ching Seng Han Thong Chin Tet Yung Shanmugam, K. Chng Hee Kok Sidek bin Saniff Chong, Charles Sin Boon Ann Choo Wee Khiang Sinnakaruppan, R. Davinder Singh Tan Boon Wan Goh Chee Wee Tan Cheng Bock Goh Choon Kang Tan Soo Khoon Harun bin A. Ghani Tang Guan Seng Hawazi Daipi Teo Chee Hean Heng Chiang Meng Teo Ho Pin Ho Peng Kee Toh See Kiat Ho Tat Kin Vasoo, S. Hu Tsu Tau, Richard Wan Soon Bee Ibrahim bin Othman Wang Kai Yuen Iswaran, S Wong, Aline K. Jayakumar. S. Wong Kan Seng Ker Sin Tze Yaacob Ibrahim Koo Tsai Kee Yao Chih, Matthias Lee Boon Yang Yap Giau Cheng, Eugene Lee Hsien Loong Yatiman Yusof Lee Kuan Yew Yeo Cheow Tong Lee Yock Suan Yeo Guat Kwang Leong Horn Kee Yeo, George Yong-Boon Lew Syn Pau Yu-Foo Yee Shoon Lim Boon Heng Zainul Abidin Rasheed Lim Chun Leng, Michael Lim Hng Kiang Noes Lim Hwee Hua Nil Lim Swee Say Lim T. E., David Abstention Loh Meng See Low Thia Khiang Low Seow Chay Mah Bow Tan

Mr Speaker: The Second Reading of the Bill has been carried by the votes of not less than two-thirds of the total number of elected Members of Parliament.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [BG Lee Hsien Loong].

Bill considered in Committee; reported without amendment.

Third Reading

Mr Speaker: Third Reading, what day?

BG Lee Hsien Loong: Now, Sir. I beg to move, "That the Bill be now read a Third time."

Mr Speaker: The Question is, "That the Bill be now read a Third time."

A Division will be taken to ascertain that the Third Reading of the Bill is supported by the votes of not less than two-thirds of the total number of elected Members of Parliament, which is 56 Members, pursuant to Article 5(2) of the Constitution. Ring the Division Bells.

Question put, "That the Bill be now read a Third time." Division taken: Ayes, 79; Noes, Nil; Abstention, 1. Ayes Ayes (cont.) Abdullah Tarmugi Mohamad Maidin B P M Ahmad Mohd Magad Neo, Lily Ang Mong Seng Ong Ah Heng Chan Soo Sen Ong Chit Chung Chay Wai Chuen Ong Kian Min Chen, Bernard Othman bin Haron Eusofe Chen Koon Lap, Kenneth Ow Chin Hock Chen, Peter Peh Chin Hua Chen Seow Phun, John Ravindran, R. Chew Heng Ching Seng Han Thong Chin Tet Yung Shanmugam, K. Chng Hee Kok Sidek bin Saniff Chong, Charles Sin Boon Ann Choo Wee Khiang Sinnakaruppan, R. Davinder Singh Tan Boon Wan Goh Chee Wee Tan Cheng Bock Goh Chok Tong Tan Soo Khoon Goh Choon Kang Tang Guan Seng Harun bin A. Ghani Teo Chee Hean Hawazi Daipi Teo Ho Pin Heng Chiang Meng Toh See Kiat Ho Peng Kee Vasoo, S. Ho Tat Kin Wan Soon Bee Hu Tsu Tau, Richard Wang Kai Yuen Ibrahim bin Othman Wong, Aline K. Iswaran, S Wong Kan Seng Jayakumar. S. Yaacob Ibrahim Ker Sin Tze Yao Chih, Matthias Koo Tsai Kee Yap Giau Cheng, Eugene Lee Boon Yang Yatiman Yusof Lee Hsien Loong Yeo Cheow Tong Lee Kuan Yew Yeo Guat Kwang Lee Yock Suan Yeo, George Yong-Boon Leong Horn Kee Yu-Foo Yee Shoon Lew Syn Pau Zainul Abidin Rasheed Lim Boon Heng Lim Chun Leng, Michael Noes Lim Hng Kiang Nil Lim Hwee Hua Lim Swee Say Abstention Lim T. E., David Low Thia Khiang Loh Meng See Low Seow Chay Mah Bow Tan

Mr Speaker: The Third Reading of the Bill has been carried by the votes of not less than two-thirds of the total number of elected Members of Parliament.

Bill accordingly read a Third time and passed.