PARLIAMENTARY PENSIONS (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Home Affairs (Mr Wong Kan Seng): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, under the Parliamentary Pensions Act, a political office-holder from Political Secretary to Prime Minister serves on pensionable terms. The post of Mayor is a recent creation. Hence, it is currently not included in the Parliamentary Pensions Act. We now have five Community Development Councils, each led by a Mayor who carries substantial responsibility. A Mayor's remuneration and its position in the Table of Precedence are between the Minister of State and the Senior Parliamentary Secretary commensurate with the responsibilities of his office.

The Bill amends section 2(1) of the Act such that service in the office of Mayor, regardless whether it is before or after the commencement of this Bill, will be reckonable for the purposes of qualifying for an office-holder's pension. Under the Parliamentary Elections Act, Sir, the holder of any political office who does not serve long enough before retirement to qualify for an office holder's pension but who is otherwise eligible for a Member of Parliament's pension may have the whole or part of the office-holder's service reckonable towards the Member's pension eligibility. Section 6(2) of the Parliamentary Pensions Act is amended such that a Mayor who is similarly eligible for a Member's pension, but who has not served long enough to qualify for an office-holder's pension may add two-thirds of his service as Mayor to his Member's pension eligibility.

Sir, I beg to move.

Question proposed.

Mr Low Thia Khiang: Mr Speaker, Sir, according to the explanatory note to the Bill, the amendment will in fact allow the time served by a Mayor to count in two ways. First, it can be counted as service towards an office-holder's pension. Secondly, if he does not qualify for an office-holder's pension, then his years of service as a Mayor can also count as his period of service towards a Member's pension.

This amendment seeks to put the position of Mayor together with office-holders, such as Prime Minister, Deputy Prime Minister, Speaker and Ministers. Sir, these are public officers under the Constitution and it requires its holders first to be elected into Parliament. I believe this is why their pensions are under Parliamentary Pensions Act, rather than under the civil service Pensions Act. These officials direct and oversee matters affecting national security, foreign affairs and other policy matters, and they should be recognised. The question is whether the appointment of Mayor can be considered as public office in the same category. The Mayor is not appointed under the Constitution, or any law passed by Parliament. Rather, the Mayor is appointed under the rules of the People's Association Act. These rules are designated by the Board of PA, and Members of the House did not have a chance to consider whether such Mayors are required in the first place.

Now, the House is being asked to consider allowing public funds to be used to give pension to Mayors. Is the People's Association expecting the House to rubber-stamp their plans, which will be put in place, without consulting Parliament? Does this make sense, since Parliament was not involved in approving or disapproving the creation of such an appointment in the first place?

Secondly, should service as a Mayor count as additional service to qualify for a Member's pension? Under the current Act, a Member should serve a total of nine years as an MP before qualifying for a Member's pension. This amendment will allow time served as a Mayor to count as additional years to be added on to his service as an MP. Why does the Government see the necessity to do this? Is the Government not confident that the Mayors can chalk up nine years as an MP?

Under the People's Association CDC Rules, the criteria for the appointment of Mayor have changed twice. In the most recent amendment on 24th November 2001, there is no longer a requirement for a Mayor to be the Chairman of a town council. In other words, so long as the potential Mayor is Chairman of CDC, he will qualify for appointment as a Mayor. Why was this change made? It must be because I believe the Board of the PA, headed by the Prime Minister, considers that there would be Mayors who may not be Town Council Chairmen, ie, they are not elected Members of Parliament. Is it correct, in principle, to give them a Member's pension when they have not served enough years as a Member? I am of the view that to allow the amendment will make the term "Member's pension" under the Act meaningless.

Sir, to me, it makes a mockery of Parliament by asking Parliament to provide pensions for such an appointment without consulting Parliament for the appointment in the first place.

Mr Speaker: Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 3.20 pm.

Sitting accordingly suspended at 3.00 pm until 3.20 pm. Sitting resumed at 3.20 pm