REVISION OF SALARIES AND CONDITIONS OF SERVICE FOR GOVERNMENT SENIOR OFFICERS - (Statement by the Minister for Finance)
Mr Speaker, Sir, the Treasury has for some time been reviewing the various schemes of Government service and making changes, where desirable, to them. Members may recall, for example, the restructuring of Teachers' salary scales, and the revision of salaries for Junior Police Officers, Technical Officers, Nurses and Midwives and daily-rated employees. In this Statement, however, my purpose is to consider the terms and conditions of service of Division I, especially Administrative and Professional, Officers constituting the top echelons of the civil service. These officers form about 2 per cent only of the Government Service but make the most vital and important contribution as they give administrative and professional leadership and direction to the whole service. Their administrative and professional skills, so valuable to Government, would be equally useful to the private sector, which can, and often do attract them by the offer of rewards well in excess of what the public sector at present pays. It is not expected that we can completely prevent losses to the private sector, even with the revisions we are proposing. But it is essential, if we are not to strain unduly the great loyalty and dedication to the Service which most of our top civil servants have shown, that their salaries and conditions of service should he roughly equated to those in the private sector. The Government should seek to be regarded, taking the monetary with other non-financial rewards which are offered, as equally good or even better employers. While I propose to confine my remarks in this Statement to revisions proposed for the Government sector, I recognise that they will be equally pertinent to some employers in the public sector who also employ administrative and professional officers. Where their qualifications and the nature of their work are comparable, the terms and conditions of service of their Government counterparts are relevant. To the extent that such Statutory Boards and Universities depend upon Government financing, my Budget and Establishment Division, in consultation with these public sector bodies, will examine any necessary revisions for such professional and administrative officers so that they may be correlated with those of the Government. But it is necessary to emphasise that the Government revisions may not be relevant or appropriate to all administrative and professional officers in the public sector as the nature and responsibilities of such officers and their conditions of service may be quite different from those of the Government officers. Revisions of salaries have obvious financial implications which have had to be carefully considered in relation to Singapore's economic situation and its ability to pay enhanced salaries not only to officers in Superscale posts but also to officers in the whole of the public sector. Pending such consideration, the payment of a non-pensionable annual allowance equivalent to one month's salary (a sort of 13th month payment) as a regular annual feature was an interim measure which has not, however, rendered the problem of restructuring the top civil service any less urgent. In view of Singapore's continuing economic growth, it is now proposed to make revisions with effect from 1st March, 1973 as in the Table* (*See Appendix, cols 435-6.) I have distributed. Appendix to Statement on Revision of Salaries of Senior Appointments in the Public Service (Cols. 392-401) (0435-0436) The following remarks may be of value in considering the changes proposed in the Table. First, with regard to the Timescale Division I Administrative and Professional Officers, it is generally recognised that the first three years of the salary scale for Division I Officers are adequate for the period during which officers are still learning and undergoing training. The inadequacy often arises after three to five years when there may be difficulty in retaining some of the more promising officers who are attracted to seemingly greener pastures in the private sector. We have tried to find an answer to this problem in more rapid and more frequent promotions to higher segments of the salary scale based on merit and not necessarily on vacancies and these are now regularly being done by the Public Service Commission. For example, the Public Service Commission has only this week concluded a promotion exercise in the administrative service in which 11 Assistant Secretaries were promoted to the grade of Principal Assistant Secretary and 16 Administrative Assistants were promoted to the grade of Assistant Secretary with an additional three promoted to Principal Assistant Secretary on trial and seven promoted to Assistant Secretary on trial for one year. In addition to these more frequent promotions for the Division I Officers, it is proposed to introduce a scheme of accelerated increments for merit. This will enable us to reward by more than the normal one increment annually, but subject to a maximum of four increments, deserving officers who either are not yet ready to be promoted to the next grade or for other organisational reasons cannot be so promoted. This Merit Increment Scheme has been accepted by the Public Service Commission and the Legal Service Commission, and will be implemented this year. The Scheme will then apply not only to Timescale officers in the Administrative Service but also to professional officers like doctors, lawyers, architects and engineers. The assessment of the merit of individual officers under the Scheme will be carried out by a Committee of relevant Permanent Secretaries who will be appointed by, and will make their recommendations to the Public Service Commission (or the Legal Service Commission, as the case may be). Admittedly, such assessment of merit will not be an easy task but the Committee of Permanent Secretaries will have access to all the confidential dossiers of the officers and a specially prepared report by the Head of Department of the officers concerned. This Scheme is not a novel one as it has been tried out in other public services and it has also been adopted by some companies in the private sector. With regard to the Upper Timescale Officers, that is, officers on the salary scale $1,700x50-1,850, it is proposed to revise their salary scale to $1,700x 100-2,000. There are really two changes to this scale: (i) it extends the upper limit from $1,850 to $2,000 and (ii) it increases the yearly increment from the existing $50 per annum to $100 per annum. The Upper Timescale grade is a stepping stone to the Superscale grades and the present revision bringing the maximum to $2,000 will ensure that the Upper Timescale Officers will reach a higher maximum than the Timescale Officers on the salary scale $900x50-l,000/1,050x50-l,400/1,450x50-1,850. A Timescale Officer through the passage of time only will no longer reach the same salary as an Upper Timescale Officer. We now come to the first of the Superscale grades, that is, Superscale G. There are Superscale G officers in the Government service ranging from Assistant Directors of Education and Deputy Chief Planner, Planning Department, to Radiologists. The salary of the Superscale G Officers is to be revised from $l,920 to $2,500, an increase of $580 per month. Next in the Superscale structure is Superscale Grade F which at present is at a salary of $2,020. Comparatively, there are only a small number of Superscale F Officers in the Government service and these comprise the Senior Assistant Commissioner of Police, the Director of Prisons and the Director of National Library amongst others. The responsibility of these officers is generally a shade higher than the Superscale G Officers. It is proposed to revise their salary to $2,750, an increase of $730 per month over the present salary. Further up the ladder is Superscale Grade E which includes officers like the Assistant Directors of Public Works, the Commissioner of Lands and Deputy Secretaries of Ministries. The salary of these Superscale Grade E Officers will be revised from $2,070 to $3,000, an increase of $930 per month. Next are Superscale D Officers. There are only a small number of officers in this grade amongst whom are the Accountant-General, the Auditor-General, Deputy Directors of Medical Services, the Deputy Director of Public Works, the Director of Civil Aviation, the Registrar of the High Court and the Senior District Judge. At present, these officers are drawing a salary of $2,170 and it is proposed to revise their salaries to $3,500 per month. In addition, it is also proposed to bring this grade of officers within the scheme whereby they will be entitled to the use of a car paid for by the Government but maintained by the officers themselves. We now come to the Superscale C grade. This is the grade for most of the Permanent Secretaries and for four other officers, the Solicitor-General, the Commissioner of Police, the Director of Public Works and the Commissioner of Inland Revenue. In recognition of the heavy responsibilities that these officers shoulder as administrative Heads of the Ministries, the present salary of $2,350 per month will be revised to $4,500. In addition, they will continue to be entitled to the use of a car paid for by Government. Special arrangements of an official car with driver maintained by Government are made for the Commissioner of Police because of his position as head of a disciplined force. Next higher in grade is Superscale B, which includes other Permanent Secretaries, Puisne Judges and the President of the Industrial Arbitration Court. In view of the nature of their duties and the positions they occupy, the salary of this grade of officers presently at $2,700 will be revised to $5,500 per month. They are, of course, also entitled to the use of a car. In addition to the car that would be provided by Government, the Judges will continue to enjoy perquisites such as a Government house at the usual Government subsidised rental but fully maintained by Government. It is proposed to create an additional grade called Superscale B1 to be attached to the most senior of the Puisne Judges in recognition of his special position. This salary will he revised to $6,000 per month. At the top of the hierarchy is Super-scale A. There are only three full-time civil servants on this grade - two Permanent Secretaries and the Attorney-General, in addition to the Chairman. Public Service Commission, and for the purposes of grading only, the Honour-able Speaker of this House. It is indeed difficult to assess, in monetary terms, the value of these officers but it is now proposed that the salary of these officers, who are presently at $3,000 per month, be revised to $6,500 per month. Special arrangements are intended for the Speaker since he officiates part-time, but he will continue to be entitled to the official residence (with servants) and an official car, as at present. Then, we have to consider the position of the Chief Justice. He will be graded as Superscale Al, with a salary of $7,500. The Chief Justice will, in addition, continue to enjoy all the other terms of office which he presently enjoys, including an official car with driver and an official residence maintained at Government expense, together with a number of household servants to help to upkeep the residence. Having dealt generally with the various Superscale gradings and the salaries and other terms appropriate to each, I should like to say a word about cur medical services officers. Many of them are in specialist grades, either in the G or E Superscales. At one time, it was the practice for these specialists (both medical and professional) to be allowed to retain part of the consultation fees from private patients or from undertaking outside consultancy work. This practice, however, resulted in malpractices or conduct unbecoming to the specialist whose attitude towards patients tended to be related to their ability to pay fees. Also, essential medical specialities, such as pathology and radiology, where the possibilities of fees earning were greatly inferior, tended to be increasingly less favoured for specialisation by the bright young medical officer. In 1958, this practice was abolished and replaced by fixed Specialist Allowances for Superscale Medical Officers at varying rates. These rates were revised in 1969 to $100 per month, $150 and $500 per month for Medical Officer, Senior Registrar and Superscale G respectively, and $750 per month for Superscale E and above. However, over the last two years, there has been increasing pressure for the re-introduction of some scheme in which consultant fees would be shared by the consultant specialist. My colleagues in the Cabinet and I do not favour a system which experience has so clearly shown to be readily subject to abuses. At the same time, I realise that if we are to retain our best specialists, we must recognise the value of their contributions in some tangible way. For this purpose, we should promote a few of our outstanding specialists to Superscale D. This will not only mean an immediate increase in salary of $1,430 per month for promotion from the E salary to the proposed Superscale D salary, but also carry the perquisite I have already mentioned of a Mercedes Benz car provided as to its capital cost at Government expense. Additionally, if need be, I am prepared to agree that the fixed Specialist Allowance for doctors should be increased beyond the present limit of $750 up to $1,250 per month for specified individual outstanding officers. Next, because of the great interest which has been generated, it would seem especially among doctors, it may be appropriate if I refer at this stage to the scheme for reduced vacation and medical leave which has been introduced with effect from 1-1-73 for all Government Officers other than those in the teaching service. Civil servants under the previous leave scheme were eligible for the following rates of vacation leave:- Completed service in a particular Days per calendar year Division Div Div Div Div I II III IV Less than 10 years' 33 28 24 21 service 10 years' service 39 33 28 24 or more Because of the generous leave scheme, coupled with the general shortage of staff over the years, many officers had not been able to take their full leave, and as a result, have accumulated considerable leave to their credit. In addition to vacation leave, civil servants under the previous regulations were eligible for sick leave on full pay up to 90 days per year whether they are hospitalised or not. Having regard to the leave usually allowed by the private sector, leave eligibility for all public officers, regardless of divisional status, has been revised as follows:- Less than 10 years' service - 14 working days a year. 10 years' service or more - 21 working days a year. All provisions for deferred leave would be abolished. However, accumulation of leave up to one year's eligibility may be allowed to be carried forward to the following year. Medical leave on full pay has been revised to 30 days per year if no hospitalisation is necessary but may be extended to 60 days if hospitalisation is recommended by the medical authorities. This revised leave scheme has been accepted in principle by the staff unions representing the public service. To compensate for the reduction in vacation and medical leave, the difference between the employee's previous and new leave eligibility will be commuted into pay. The mode and the exact formula of such compensation is now under examination with the staff unions. It should, however, be pointed out that all serving officers on the permanent establishment have an option to either accept the new leave scheme with compensatory payment or retain the previous leave scheme. Furthermore, this principle of option will also be extended to new recruits into the service. For those officers who consider the reduced vacation leave insufficient, I should like to add that in future, no-pay leave to make up leave to their previous leave eligibility will be liberally granted. Officers who feel the need for extra leave will therefore be able to use the monetary compensation paid in lieu of leave to offset the loss of pay during such leave. Finally, I should like to inform members that apart from these salary revisions the Government will adopt the agreed general guidelines of the National Wages Council for salary increases every year. For administrative convenience, it is Government's intention to pay these increases in the form of supplementary allowances at the rate recommended by the National Wages Council. At the end of every four to five years the Government will undertake a full scale revision of salary scales, consolidating in the process such supplementary allowances into the basic salaries. Such a revision of salary scales after four to five years will enable Government to review wages and salaries in the public sector and make adjustments to keep broadly in parity with private sector wages and salaries. In this way, our promising young officers can be certain when electing for a Government career, that in the medium and longer run, they will never lose out to their contemporaries in the private sector. Competent and effective administration can be assured only if the civil service maintains its quality and integrity, with an able leadership at the top of the administrative pyramid, supported by a constant intake of young officers of promise and some of the ablest of whom will stay and grow in the service in the full knowledge that their climb to the top will be more satisfying and equally rewarding as if they had opted for the private sector. 3.12 p.m.