For discussion FCR(95-96)137
on 8 March 1996

ITEM FOR FINANCE COMMITTEE

HEAD 96 - GOVERNMENT SECRETARIAT : OVERSEAS OFFICES
Subhead 149 General departmental expenses

Members are invited to -

  1. approve new rates of rent allowance payable to officers posted or seconded to work in Singapore; and
  2. delegate to the Secretary for the Treasury the authority to approve future revisions to the rates of the rent allowance by reference to the rental movements in the Worldwide Cost of Living Survey.


PROBLEM

We need to establish rates of rent allowance for officers at different ranks posted or seconded to work in Singapore.

PROPOSAL

2. Secretary for Trade and Industry proposes the following rates of monthly rent allowance for officers posted or seconded to work in Singapore -

Rank Proposed rent allowance
per month
(S$)

Administrative Officer
Staff Grade B (AOSGB)

10,500

Administrative Officer
Staff Grade C (AOSGC)

8,800

Senior Administrative Officer (SAO)

6,500

Principal Information Officer (PIO)

5,500

3. We further propose to delegate to the Secretary for the Treasury the authority to approve future revisions to the rates of rent allowance by reference to the movements in rents as reflected in the Worldwide Cost of Living Survey (WCLS) published by the Business International.

JUSTIFICATION

4. Rent allowances are payable to officers posted overseas. We normally determine the rates of rent allowance for officers by reference to the rates payable to their equivalent ranks in the United Kingdom Diplomatic Service (UKDS). This is not possible in the case of Singapore since the UKDS officers there are housed in owned accommodation. Members considered FCR(93-94)1 and approved on 16 April 1993 a rent allowance of S$4,600 for an officer at AOSGC level seconded to work in the Asia Pacific Economic Co-operation (APEC) Secretariat in Singapore. Members also delegated to Secretary for the Treasury the authority to approve future revisions based on the Business International Index1. The present rate stands at S$5,800 per month.

5. Experience has shown that the present rate is inadequate. At this rate, our officer seconded to the APEC Secretariat could only rent accommodation of a standard much below that of his counterpart of equivalent status from other foreign missions. We also find it necessary to set new rates of allowance for officers at ranks other than AOSGC posted to work in Singapore, including staff in the Hong Kong Economic and Trade Office (HKETO) there set up in late 1995 and an AOSGB officer seconded to assume the position of Director-General of Pacific Economic Cooperation Council (PECC) based in Singapore since January this year.

6. In considering the new rates, we have looked at the rent allowances payable by diplomatic missions of other countries in Singapore. We find the rates offered by the Australian Government a suitable reference for Hong Kong as their rates in other places, particularly in the cities where our Economic and Trade Offices are located, are broadly comparable to those for the UKDS, whose standards we normally use as benchmarks for setting our own rates. We therefore recommend that we follow the same rates of rent allowance offered by the Australian Government to her diplomatic service staff at comparable ranks as follows -

Rank Rent allowance
per month
(S$)
Comparable rank
in Hong Kong
Government

Minister

10,500

AOSGB

Counselor

8,800

AOSGC

First/Second Secretary

6,500

SAO

Administrative Assistant

5,500

PIO

7. To maintain the real value of the rent allowances, we propose to adjust them annually by reference to the rental movements in Singapore as reflected in WCLS. This is in line with the system of adjustment of rent allowances for other overseas offices. As the adjustments will be index-linked and routine in nature, we further propose that Members delegate to the Secretary for the Treasury the authority to approve such revisions.

FINANCIAL IMPLICATIONS

8. The proposal, if approved by Members, will result in additional annually recurrent expenditure estimated at $2,376,000. We have included sufficient provision in the draft Estimates to meet the additional expenditure in 1996-97.

BACKGROUND INFORMATION

9. We have five Hong Kong-based officers posted to work in Singapore for three different organizations. One AOSGC is seconded to the APEC Secretariat as its Director of Administration and Finance. The post was first created on a supernumerary basis in 1993 and has been made permanent since December 1995. On 12 May 1995, Members approved the establishment of the HKETO in Singapore. The Office, headed by an AOSGB, was set up in August 1995. The establishment of the Office also includes an SAO and a PIO from Hong Kong. On 29 July 1995, Members approved the creation of an AOSGB post to accommodate an officer for secondment to the PECC Secretariat in Singapore as its Director-General.

Trade and Industry Branch
March 1996

1 -- Since early 1995, the survey conducted by the Business International has been renamed the Worldwide Cost of Living Survey.


Last Updated on 2 December 1998