Mr Speaker, Sir, I move the motion standing in my name. It reads: That this House deplores the decision on major issues like Malayanisation and one and a quarter million dollars ex-gratia payments made by the present City Council during its last few days of office and urges that sanction, as required by paragraph (r) of section 29 of the Municipal Ordinance, to the payment of over one and a quarter million dollars for ex-gratia payment mostly to expatriate employees, be withheld until the new City Council to be elected on the 21st December has reconsidered the matter. There is a typographical error in the Order Paper, Sir. The last part of my motion should read ". . . has reconsidered" the matter, and not, as printed, ". . . has recommended". Sir, as the days go by, we approach Christmas time, and we all receive beautiful Christmas cards sent by fellow Assemblymen to one another. I hate to spoil other people's Christmases, but whilst I would like to convey my good wishes for a happy and merry Christmas, I cannot be urged to join in felicitations to the extent of letting pass unnoticed $1¼ million worth of public funds, most of which will go to expatriate officers already in retirement in the United Kingdom. Sir, there are two possible approaches to the subject that I have tabled for debate today, one on principle and the other on detail. Whether it is to be on principle alone or on detail and principle, I leave it to the Members on both sides of the House other than those of my Party. I propose to take the question of principle first. If Members, particularly those who are Members of the City Council up till midnight, choose to raise this matter in detail, I may inform them that I have been fairly well briefed by local senior officers in the City Council and I am quite prepared to go into the matter in detail. Briefly, the one question of principle that I object to strenuously is this: that at the second last meeting on the 29th November, when almost every City Councillor knew whether or not he was going to put his record of office before the electorate, and had decided that he was not going to do so, he joined expatriate officers - the President of the City Council and his colleagues - in bundling these two Christmas gifts by. Now, Sir, we all know that elections to the City Council should have been held in 1955. The P.A.P. supported the ex-Chief Minister when he moved a resolution that elections should be postponed so that the whole question of the local government structure could be reviewed. These people were therefore allowed to carry on, and they have carried on for over two years. Their mandate had expired. They had no right to decide on major issues such as this one costing millions of dollars - $1¼ in the case of the additional benefits of provident fund, and $14 million (in our calculation) on the other issue of Malayanisation. These were the two big issues on which there was a lot of hard argy-bargy for a long time but no decision was arrived at. No vote was taken until the Councillors knew that they were not contesting elections, either because their Parties thought they were too heavy a political liability, or for other personal reasons. The moment they decided that their future was not for the public to decide any more, since they did not think their past record worth putting before the public for its decision, they passed these two big things, and we strenuously object. We object in particular to the expatriate officers in the Council being not just a party to this, but being the prime movers of this. They knew that the next Council is going to be radically different from the present one. This is a nice, cosy little set up. We have nine nominated members, we have 18 elected on the old basis - small little elections, 800 people were involved; and nice little people like - well, I will not say nice little people but little people like the hon. Member for Queenstown; I mean it depends on whether one likes him or not, but they are people whom you can accommodate, you could persuade, you could talk them round - reasonable chaps. The next City Council is going to be quite a different proposition. These officers know it and so do the Councillors. And these officers know further that it is very unlikely that they will get such an amenable council as the present one. They are going to get people who will be very sensitive to what the public thinks and who have very decided views about how public funds should be dispensed. Therefore, rather than risk the matter receiving more careful consideration, and a final decision by the real representatives who will be elected on 21st December - tomorrow - they smuggled it through on 29th November. Now, Sir, I have worded the motion carefully because I do not want to apply it to each and every case of those who retired before the operative date. I think it was 1954 (I believe you are quite familiar with the matter) - when salaries were boosted up after the war and provident fund schemes were not similarly adjusted. The consequence was that those who retired before that date when the provident fund scheme was adjusted to fit in with the new emoluments, suffered in not getting the benefits of the new rates. There may have been a few individual cases where, quite properly, a case can be made out under section 29 (r) of the Municipal Ordinance. This section stipulates that the Governor in Council - but perhaps I should read the exact words: "The Commissioners are authorized to expend the Municipal Fund for the following purposes: - . . . (r) payment with the previous sanction of the Governor in Council in special cases of gratuities to deserving municipal officers or workmen prior to, on, or after their retirement or to their widows or children on their death". Now, Sir, people like Mr A. P. Rajah of the Liberal-Socialist Party, who gave away $50,000 to the City Council engineer (I think it was the Chief Engineer), and another, Mr Chan Kum Chee, who voted another large sum of money to some electrical expert for stopping the power failures, quite wisely did not offer themselves for elections. But here they have the impudence, these Councillors as a whole have the impudence, not to consider, according to section 29 (r) , each individual officer's case to see whether or not any injustice was made or had been inflicted in a particular case, but to make a blanket payment of $1¼ million. If they want to give away their own money it is their funeral, but this happens to be our money and it is our business. We in this Chamber have a right to urge the Government not to give this sanction, as the City Council is required under the Municipal Ordinance to get sanction from the Executive Council. Now, Sir, that is a nice legal point. This Ordinance will expire by tomorrow, and the question is: Can the Government under the new Ordinance give sanction, because the new Ordinance does not contain a similar proviso? In my opinion, there is not the slightest doubt whatsoever that if this is not done before the 21st December - before midnight tonight - then it cannot be done at all. But if my view happens to be wrong and another view is established that the sanction can be given even after the Ordinance is repealed, then I say very seriously to the Government that it would be an act of political folly to be a party to this rump of local political has-beens, and give away this amount of public money. I have been careful, Sir, in my drafting of the motion not to say that this is wrong in each and every case. There may have been some special cases where an injustice might have been done, but a blanket provision, if approved, would be a betrayal of the mandate of the people to us to look after public funds. Now, Sir, I shall leave the personalities involved, who voted through this $1¼ million, to the Liberal-Socialist Party because it issued a statement immediately after we brought public attention to bear on this matter. It washed its hands completely clean of this. It said, 'Oh, no, we are against the whole business.' In fact, but for the Member for Cairnhill who, for some reason or other, abstained on the whole matter and thereby connived at it, the Liberal-Socialists were dead set against it. They did not approve of this waste of public funds and doubtless it will be their duty to clarify their position. Now the more important issue, that of Malayanisation; this is a more complex subject and a larger sum of money is involved. Quite a number of minds have been at work on this topic for a long time. They have worked out a very nice and very complicated scheme whereby all City Council expatriate employees who are at present on contracts can opt to sign new contracts - type A, type B and type C. In short, it means money all round because there is no reason why any contract should be renewed. They are not Malayan Civil Service officers, the heaven-born who were in a special category. We were persuaded last year because the Government of the Federation approved the abolition terms in the Federation, not to attack the Government on the abolition terms offered to expatriate officers here. But of course that has acted as a great stimulus to expatriate officers in the Singapore Harbour Board, the City Council and all other semi-government corporations, to try to get similar or equivalent abolition terms. Everyone thought that this was a jackpot free-for-all - just put your hand into the kitty, grab a bagful of notes, put them into your pocket and push off. Better still, get another job in the Telephone Board where, subsequently, you might be able to persuade some stupid members on that Board to agree to give you further abolition terms. I think I should go into this in much detail and read to this House a letter which has reduced this complicated plot into fairly simple terms. This is a letter written by the President of the Local Senior Officers Association of the City Council of Singapore, an open letter published in the Press. It says: "The Singapore City Council at its meeting on November 29th agreed to offer expatriate officers the option of continuing on the permanent establishment on their existing terms and conditions of service, or as varied by agreements from time to time, or entering into one of the following three forms of contracts of service with the Council on the terms and conditions set out hereunder and referred to as contracts A, B and C." As this is a fairly complicated matter to the uninitiated. I will read a little slowly: "Contract A is to incorporate all the conditions of service applicable to all senior officers at present and, in addition, to provide that an officer who resigns after five years is to be paid a lump sum of the difference between the more favourable and the less favourable method of compilation for provident fund."- There are two methods of calculating provident fund, one the more favourable, one the less favourable; the difference is about 30 to 40 per cent. Sir, if an officer signs contract A, stays on for five years and resigns, and if he himself quits - he gets this extra 30 or 40 per cent, for no rhyme or reason whatsoever, because in any case he is on contract. If he does not like it, and has a better job, he goes, as some officers who have better jobs have gone. To continue: "If his service is terminated by the Council"- and this is the other proviso, this is the other side of this plot- "for any or no reason other than misconduct or ill-health"- in other words, you cannot sack a man other than for misconduct or ill-health; if he is downright inefficient you have to tolerate him. It is all laid down, you can only sack him for misconduct or ill-health- "and he be thereby compulsorily retired"- in other words, malayanised- "the compensation payable is to be calculated on the following basis: (1) The difference as in the first paragraph above [that is, table A and table B of the provident fund]; and (2) Government abolition terms." That is the big thing. That is what everybody is grabbing. Expatriate officers will have written into their contracts that if any expatriate officer is malayanised, then compensation is payable to all such officers and provident fund benefits will also be paid in addition. So all the officers who now have contracts - a hundred odd persons - sign new contracts. They all sign contract A, and then if they serve five years and they do not like it any more, they take this extra provident fund with no abolition terms. If they happen to stay healthy as they are bound to on their present salary, and they do not commit an indiscretion, then you cannot get rid of them. If you do get rid of them, then they get greater benefits of provident fund. This will no doubt serve their five years for abolition terms on Government rates. Furthermore, if you sack one, then all the other officers who have signed contract A, can also say, "Well, I am leaving too. Please give me extra provident fund benefits plus abolition terms." Now, contract B provides for an officer who resigns: "to receive provident fund benefits according to Table B of the Provident Fund Rules," That is the less favourable one. "and to sign a contract which is similar to contract A except in lieu of further provident fund benefits. He receives an allowance equal to 20 per cent of basic salary." That is not the important one, because I do not think many will plump for that one. Contract C provides for an officer who resigns: "to receive provident fund benefits according to Table B of the Provident Fund Rules and to sign a short-term contract for three years' resident service on the same lines as the present contracts for temporary officers. It has been agreed that gratuities, compensation of provident fund payments be made tax free." In other words, the Council pays the tax, and they collect. Now, we worked out the abolition terms and all these people who come in will collect $50,000 or $60,000 and that is tax free. They are not in that same privileged position because under the law of income tax, they have to pay a large slice of it in income tax. So they providently provide beforehand that on the sum they are going to receive, the Council will pay the income tax and they collect as much as they would have had if they were in Government service. Now, Sir, this is what the local officers have to say on this: "The Council has apparently approbated its rights to terminate any expatriate officer's contract for inefficiency or redundancy without paying compensation. In times of recession, it would be less expensive for the Council to retrench local officers than expatriate officers. My Association, [this is the President's writing] after its representatives had given evidence before the Malayanisation Commission, have not pressed the Council to implement the terms of this Commission's Report as it has viewed with concern the enormous sums of money which have been paid to expatriate officers in Singapore and in the Federation Government services." Those praiseworthy, public-spirited servants! In Singapore, it was stated that the direct cause of a deficit in 1957 - the deficit being $8 million - was that $9 million was paid out in abolition terms. Therefore the conclusion we draw is that but for that, there might not have been a deficit but a surplus of $1 million. This is according to the computation of the Hon. the Financial Secretary. I read on: "In the opinion of the members of my Association, these large sums of money could have been better spent in enlarging the local services which could have directly benefited the peoples of Malaya. The members of my Association feel further that whilst they hold the view that all the senior posts in the City Council can be fully malayanised with a few exceptions within four years, they should not press for immediate Malayanisation if vast sums of money are to be handed out to all the Council's expatriate officers. This money could be better spent on projects that benefit the people of Singapore." These are the facts briefly and succinctly stated. I am quite prepared to go into further details on this but I would like to take the matter on principle.