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Saturday, 07 January 2012 12:01

The jury is still out on pay issue

  • Written by  Andrew Loh
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It has been a week of angst, anger, and just about everything in-between – if you go by what is happening online. Since Gerard Ee and his committee released their report on ministerial salaries, views have flown fast and furious on the Internet.

What can be ascertained so far, from all the opinion expressed, is that there is no consensus except one – that the new formula for ministerial salaries is still flawed. That’s all well and good.

The problem is that evidently, agreement on what would constitute a flawless formula has not emerged, despite the many views expressed. This is not unexpected, given that each individual will see the pay issue from his or her own perspective.

Even among the opposition political parties, there are differing opinion on what the salaries should be and what they should be based on. Here’s a brief run-down:

The Singapore Democratic Party (SDP) recommends a S$672,000 salary for the prime minister.

The National Solidarity Party does not put a concrete figure on it but instead the party emphasises the “need to restore the ethos of public service in younger Singaporeans in order to attract the right kind of people, rather than to compete on financial terms.” Its secretary-general, Hazel Poa, was reported to also be against the removal of pensions, which the Ee committee has recommended to the government.

The Reform Party too did not put a concrete figure to the salaries. Instead, it said it had “called for a much lower basic salary and a variable component which was based on a much wider set of Key Performance Indicators than the GDP growth rate.”

As for the Workers’ Party, it has offered some suggestions on how salaries should be determined: “Rather than an approach that assumes top earners are also top talent, WP recommends a whole-of-government, people-up approach to determining ministerial salaries.”

“WP proposes that MPs’ allowances should be pegged to the salaries of divisional directors in the Civil Service (excluding the Administrative Service).”

“WP is supportive of a variable component which takes into account both national objectives being achieved through a whole-of-government effort, as well as the individual performance of ministers.”

Former Nominated Member of Parliament, Viswa Sadasivan, agrees with the pay cuts and the S$1.1 million figure for entry-level ministers but recognised that "[no] amount will be satisfactory" to everyone.

Another former NMP, Siew Kum Hong, wrote on his blog that he didn’t “necessarily think that S$1m a year is excessive. "I don’t know what number would or should work, but it probably won’t be a small number," he said.

Wider on the Internet and on social media platforms like Facebook and Twitter, views also differ - from the absolute amount which ministers should receive to what should constitute an acceptable formula for bonuses, from whether salaries should be pegged to the top 1,000 earners to whether a clean wage is the way to go or perks should be given. Views also differ on whether ministers should be gleaned from the private sector or from the top performers from there, or whether the net should be cast wider into the public sector. Also, questions have been raised about why the discount is an arbitrary 40 %. Why not more? Why not less?

These differences in views are to be expected. This is perhaps why the job of any committee to create a universally acceptable formula is a near-impossible one. The variables and expectations are just too many to accommodate into an all-encompassing magic formula.

One suggested that the matter be put to a national vote.

As Viswa said, Singaporeans are reacting emotionally. But this is to be expected too. After all, one would – perhaps naturally or instinctively – compare the million-dollar salaries with what oneself is earning. So, a million or two would be astronomical to the average man-in-the-street.

It is good that Singaporeans are reacting to the matter, sentiments which have been kept under the carpet for 17 years. It shows they do feel strongly about how our leaders should be paid and the considerations which should go into this.

However, I would also agree with Siew Kum Hong that “Singaporeans should be more mindful of wanting ministerial salaries that are so low, that only rich people will run for office.” And that “Singaporeans should be careful about cutting salaries so much that our office-holders become distracted from the all-consuming job of running the country by personal financial needs.”

Despite the disagreements over the details, opinions seem to agree on two broad principles:

1. That ministers should not be paid too low a salary.

2. That they must first and foremost serve because they want to. In other words, that it is because of public-spiritedness.

And therein, really, lies the difficulties. What is “too low”? What is “too high”? Where is the balancing point?

The second point is also rather nebulous. How does one ascertain that a minister is doing it because he wants to serve? Is (lower) salary the only determinant? How about the number of hours he puts in? How about the personal sacrifices he undertakes?

One would suspect that there won’t be universal agreement on these two points either.

But perhaps the most important point Singaporeans should consider in this whole exercise is this: how much importance and value do we place on those who hold public office and the job they do? Except for the facetious, most would agree that running a country is not an easy task by any means. Indeed, one person posted on his Facebook page that with the constant brickbats thrown at our politicians, he would not want to be an MP.

And this is worrying – that in our desire to want the best people for the job (which in itself is not a bad thing at all), we may end up hurling so much abuse that those who would serve, and indeed they may even be those whom we would want to serve, end up stepping back instead of forward – no matter how much we would pay them, or no matter how much we emphasise the laudable ideal of wanting them to serve out of public spiritedness.

The reaction to Grace Fu’s Facebook post is an example. Where is the civility even as we disagree?

It is something which we should take a moment or two to ponder on.

Perhaps more will be made clear when Parliament sits to debate the White Paper which the government is expected to table on the 16th of January.

In the meantime, the jury is still out on the fundamental questions:

How much salary is adequate for a minister?

How much do we want to emphasise on the public service ethos?

And how much value do we place on national leaders and the jobs that they do?

 


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Andrew Loh

Andrew Loh

Andrew's passion are social and political issues. His writings have been reproduced in other publications, including the Australian Housing Journal in 2010. Andrew also writes weekly for Yahoo Singapore which nominated him as one of Singapore's most influential media persons in 2011 and cited him for having "pioneered a new form of journalism in Singapore - the kind that dared to speak truth to power."

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4 comments

  • Comment Link gandlin leo Saturday, 14 January 2012 16:59 posted by gandlin leo

    As we struggle to reach a consensus on the pay for our Ministers, Singaporeans should pause for a moment to remember the sacrifices made by our early leaders in Government and the Public Sector who were willing to forego the financial rewards and personal freedom by remaining in the public sector. We should also consider whether it is time to compensate those who had their properties requisitioned with woefully inadequate compensation.

  • Comment Link Claire Tuesday, 10 January 2012 11:55 posted by Claire

    I only have 2 things to say....

    1) Clean wage is not really clean. Look into each minister's other income and their directorships in GLCs and I'm sure one can also see their "other perks".

    2) I think the govt is missing the whole point of the citizens' contempt. It is not the quantum of the salary that we are bowled over... but the principle of which the income becoming a motivation factor for officer bearers to enter politics is what we are uncomfortable with. Where money is the motivation, public interests will inevitably be compromised. A good example will be the SMRT CEO... she's a hit with investors (in comparative relations, the government) but commuters suffer poor services... packed trains to optimized profits... even when SMRT is profitable, fare hikes still prevail... Where is the public interest? Between making money and commuters' comfort, which becomes the focus? Clearly making money overshadowed commuters comfort... else we won't have 5-6 pax per square metre in ouyr trains... Mah Bow Tan is also a hit with the government... but ask Singaporeans if they like him? His policies filled the govt coffers with huge profits but at what expense? The citizens. This is what citizens of Singapore don't want. We are not expecting free lunches. We don't mind paying the ministers their fair dues. We just don't want every drop of our blood sucked while our ministers feast on that fat salaries. Look at the prices of our HDB flats. Can you honestly call them "public housing"? Where construction cost is only a small percentage of the flat and the bulk of the "other inflated" costs goes towards the govt's treasury. Look at our healthcare cost. The same drugs that are manufactured in Singapore are sold higher to its citizens than in say Bangkok or Malaysia. The hospitals are run like businesses instead of healthcare institutions. In other countries, public services are often run at a loss. In Singapore it is run with huge profits. We don't expect the govt to lose money running such public services but to profiteer from them???? Do they really see where we are coming from? Or they just don't care. True, many comments are fuelled by anger and resentment and may not seem constructive... but what fuelled the anger and resentments? The PM said they will do some soul searching after the elections. Did they? They are just trying to appease the public anger by accepting a huge pay cut but the underlying problem of the govt robbing the citizens of their money is not addressed.

    In every industry... in every govt expenditure... right-pocket-left-pocket transactions is prevalent... it does 2 things... 1) create wealth for the govt and its merry men... 2) inflate costs for citizens to bear... this is where we are unhappy... not the millions in the salaries of the ministers... If the minister gets the million dollar and public services can be affordable and not overly inflated, I don't think anyone would make noise... but if they are making those millions while we bleed to make ends meet... that is where we cannot stomach...

  • Comment Link anon Sunday, 08 January 2012 15:07 posted by anon

    Andrew,
    I tend to agree with Kevin on that point about why many Singaporeans behave/respond the way they do to the govt. The govt cannot run away from the fact that the way it has governed and still do, very often exasperates and angers people.

    Let me quote to you a very simple everyday example: Free weekend parking at HDB estate. This was a wonderful and most welcomed idea implemented for decades to encourage and facilitate visits by relatives and friends. It is implemented only where at least 80% of residents agree to it. But, you maay perhaps be unaware that in recent years the HDB has been unilaterally REMOVING it without any prior consultation with residents. This removal is commonly carried out wherever shopping malls are built. Ostensibly, it was to preserve residents' parking space -which the HDB has a duty to do - but there is no consideration at all for some alternative measures to still provide for the needs of residents. It's an easy, and one must say profitable solution for the HDB since every vehicle that goes through has to pay for parking or simply being in the carpark beyond 10 minutes. It interferes with even ordinary everyday activities like deliveries, the karang guni man (who provides a useful service for recycling), the school buses esp. those who pick up nursery or kindergarten children or even simply someone waiting to pick up a friend/relative as well as the taxicab. Every aspect of ordinary living gets taxed by the govt to quite literally the last cent! This and many other MO of the govt that intrude into the lives and tranquility of the ordinary folks IS THE VERY SORT OF PENT UP FRUSTRATION AND ANGER THAT IS JUST WAITING FOR OPPORTUNITIES TO VENT AND BLOW UP. Any wonder therefore that the citizens of this country appear to be forever picking and striking back at the govt at EVERY perceived opportunity?

    IMO such pent up frustration and anger found expression too in public toilets and facilities are often abused. Parks ans estates are littered. Things and system are sabotaged.

    Make no mistake I DON'T condone such behaviour, but I most certainly can see why very often govt campaigns fall on deaf year. Psychology people listen only when they consider a source credible, respectable or reputable. As in this case, how much MORAL AUTHORITY ( ONE CRUCIAL CRITERION THAT IS CLEARLY ABSENT IN GERARD EE'S AND HIS COMMITTEES TERMS OF REFERENCE) do you think the ministers have, in the opinion of the people, when they continue to harvest such riches in the face of the plights and hardships facing many Singaporeans. by the way , I am not surprised that PM Lee would accept Ee's review since it is quite well know to many that he has always had a molly-coddled life courtesy of his parents. One I heard from someone who was present then was while in training in SAFTI, LHL has his own dining room and while his fellow officer cadets wher drilling on the parade square, he was comfortably reading in the air conditioned SAFTI library.

  • Comment Link Kevin Saturday, 07 January 2012 13:32 posted by Kevin

    There is not much question from the public about the dispute of what constitutes a "right" system of payment to ministers and government officials; yet what the public wishes to know is the information that goes into consideration when formulating those numbers, and not be told "because it is right" and "it's too difficult for you to understand".

    I'm personally glad that it has become a point of strong debate in parliament instead of a force-fed issue, much like it is with many other policies. I can hear the many approaches of the debate and make a decision on whose arguments I agree with better.

    However, there is no doubt that Grace Fu's response has left a bad taste in many people's mouth; and the fact that it attracted uncivil remarks, proves that it has offended Singaporeans from all walks of life.

    Firstly, it is unrealistic of you to expect the whole population of Singapore to behave civilly; if you do, you do not know the poulation you (once) serve(d). There are many among us Singaporeans who know not any other form of expression of anger. Putting them down like a dominating parent does not address the root of the problem.

    Secondly, rather than reflect on how one could improve the civility of our society in general, through the implementation of more sound educational policies for example, you went ahead and shook your head and thought it was unbecoming of them. Yes, it was unbecoming, but shouldn't a civil servant have a moral obligation to understand the people he serves?

    You sir, if you think about it, are precisely an example of who we don't want in parliament, and I'm glad you no longer are. I hope my honest expression of opinion would not be brushed off as being "not civil" to you. You are properly educated for goodness' sake.

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