Mr Speaker. Sir, I beg to move, That the sum to be allocated for Head 0401 be reduced by $10 in respect of subhead 1007. Sir, I rise to speak in the hope of obtaining clarification of certain provisions in the National Servicemen Employment) Rules, 1970, and the National Servicemen (Employment) (Private Employers and Statutory Bodies) Order. 1970, made by the Minister of Defence in pursuance of section 11 and section 5 (1) of the National Servicemen (Employment) Act. 1970. The two instruments in question have already been gazetted and have come into operation with effect from 2nd January. 1971. It is amply clear that the purpose of the instruments is to fulfil the assurance of the Government to provide adequate employment opportunities to national servicemen after completion of their tour of duty. No one, whether inside or outside this House who considers himself to be a true and responsible citizen of the republic, can deny that the provision of adequate employment opportunities for our young citizens who have undergone national service is the least that the republic can do by way of showing gratitude to them. The relative novelty and wide scope of the provisions of the two instruments, however, have given rise to much misgivings and anxiety among workers who have not been national servicemen. Certain of the provisions, which I will be referring to in a little while, can do with some necessary amplification and clarification, not only in the provisions themselves but also in their underlying purpose. Until an authoritative statement is made to such effect, undue confusion and worry is bound to exist. The first point of clarification which I am seeking is in relation to rule 7 (2) of the Rules and section 3 of the Order. Under rule 7 (2) , the Director is empowered to ref use to issue a new employment card to a registered person unless he is satisfied that there is sufficient justification to warrant a change of employment. Such a provision can in itself result in a great amount of dissatisfaction being generated among ex-national servicemen, as judgment may vary from Director to Director. It is patently desirable that the range of opinions among the various incumbents of the post of Director in the years to come is narrowed down to within ascertainable limits by Ministerial guidance or otherwise. The importance of knowing what will constitute satisfaction to the Director can perhaps be best illustrated by this hypothetical example. A registered person may wish to have a change of employment by reason of what he considers to be in his own best interest. He intends to effect such change of employment by giving up his current job for a lower-paid position but with much better prospects. It would be tragic if he is to be prevented from changing his employment because the Director is not satisfied with his reason. It would be more tragic if eventually he is forced to resign his job out of unhappiness but after the five-year period when he is no longer entitled to any preferential treatment. Incidentally, there does not seem to be any safeguard against the Director making an adverse decision against a registered person through becoming unduly susceptible to the persuasive charms of employers, who may be plagued by a high turnover of the labour force, if such charms are exercised in circumstances completely devoid of any suggestion of corruption or graft. It may seem that a provision for appeal by the employee concerned against a decision of the Director under Part V of the Rules may be necessary and reasonable. To return to my point, Sir, the provision of section 3 of the Order, while seeking to assure employment opportunities for former national servicemen seems to be tantamount to an "overkill" provision in restricting the scope of all other persons for changing employment or finding alternative employment. In our dynamic society, it is inevitable and healthy that there should be a reasonable degree of turnover of labour. Moreover, employers are not averse to exercising their powers to hire and fire practically at will under our present laws. Doubts have therefore arisen whether unions can now persuade employers to re-engage workers who have been retrenched or dismissed in circumstances where no reinstatement by the Minister for Labour is possible. Theoretically, employers can apply for exemption under the Rules. But from trade union experience, I think it is more likely that the employers will use the exemption provision as an added argument against re-engagement. The second point of clarification which I wish to seek is in relation to Part V of the Rules governing the Appeals Board. Is it the intention of the Government that the Appeals Board's decisions are not to be treated as precedents and that the decisions are relevant to and binding upon the respective employers who appear before the Board, somewhat similar to the awards of the Industrial Arbitration Court? There may be compelling arguments on the grounds of consistency, and certainly the decisions of the Appeals Board should be made to apply to other cases of a similar nature. I am, however, more concerned with the absence of provisions for trade unions or the workers concerned to institute or to be represented at proceedings before the Board. The very fact that there is provision for the N.T.U.C, to be represented at every session of the Board indubitably indicates that the matter of exemption does not concern only the employers and the Director. Trade unions and workers are interested in the fair and equitable operation of the exemption provision in so far as it pertains to the right of a person to work. While the N.T.U.C. nominees on the Board can be expected to look after the interest of workers, it would be illogical and unreasonable to expect an N.T.U.C. nominee on the Board to do full justice to the interest of labour in any deliberation of the Board if all the facts pertaining to an application for exemption are not adduced before the Board and he does not know the facts himself. A provision, therefore, should be made for an individual trade union or worker who is more conversant with such facts to be represented before the Board either in support of or against any application for exemption. A similar provision should also be made for an individual union or group of workers to be permitted to make an application for exemption in respect of any category or class of workers in the absence of non-availability of registered persons. As the two instruments stand at present, coupled with the employer's right to hire, as enshrined in the Industrial Relations Ordinance, if an employee in such a situation chooses to refuse to make an application for exemption or appeal against the refusal of the Director in respect of prospective employees who are ex-union members or likely to be union members, there is nothing the trade unions or the Minister for Labour can do. The end result would be that the trade union position would be further weakened in Singapore. There are some further points that I would like to ask the Minister. What is the purpose of the two instruments? Apparently an inducement for citizens to accept national service willingly and enthusiastically and penalise those citizens who shirk or refuse or begrudge national service. If that is the case, then many citizens are being unfairly penalised. For example, (a) those in age groups not called up for national service; (b) those who are genuinely debarred from national service on grounds of medical or physical infirmity; and (c) those who are unfortunate to be female citizens. No consideration and credit are given to persons who are not eligible for registration under the National Service (Employment) Act but who voluntarily offer their services in military, para-military and civic organisations in the republic. Such persons should also be entitled to preferential treatment if that is the policy of the Government. For their civic consciousness and devotion to their civic obligations, such persons are as deserving as, if not more than, the national servicemen of the gratitude of the republic. Among the categories of employees expressly exempted under the Order from the ambit of the National Service (Employment) Act are managerial and executive personnel in receipt of a monthly salary of not less than $1,920. The question is, why exemption on the basis of salary and not skill? It is likely for more national servicemen to be competent to hold managerial and executive positions than to become highly skilled artisans, such as welders or mechanics. The suspicion that the two instruments are designed to cope with the problem of the high rate of turnover of labour is further strengthened, for highly skilled artisans are very much in demand and very difficult to replace. Managerial and executive personnel, unless they are technical and experienced are not all that indispensable. A further point is that fixing a limit of $1,920 will be an added argument for foreign firms to bring in expatriate personnel. Since they can only freely employ executives at such higher salary, they may as well obtain what they consider to be the real McCoys. In enacting these two instruments, Government is restricting the right of the employer to hire. At the time of enacting the Employment Act in 1968, one of the reasons put forward by Government for the need to give employers an unfettered right to hire and fire is the urgency of maintaining a congenial atmosphere for foreign investment. A valid conclusion, therefore, is that the need for foreign investment is not so urgent, which seems probable in the light of governmental pronouncements about the spate of new employment opportunities over the next few years. Against this, despite the ostensible purpose of the two instruments, the general impression created by the absolute and blanket character of the provisions of the two instruments is that of panic and anxiety on the part of Government that it may not be able to find jobs for its national servicemen on their return to civilian life. Another conclusion could be restriction of the employer's right to hire does not prejudice the climate for foreign investment as long as the scope for profit-making is not affected. It then seems more probable since there can be no doubt about the employers' right being drastically curtailed. In that case, where does it leave the trade union movement which unquestionably supported the Government's employment legislation in 1968 on the grounds advanced by the Government? Lastly, Mr Speaker, Sir, the establishment of a national labour exchange will be a means, though more expensive and intricate, of achieving the purpose of the two instruments. 4.15 p.m.