Winter is Coming

"The Kingsguard do not run. Then or now. We swore a vow." "Jiang Wei ran to and fro slaying all he met till another heart spasm seized him,' Failed!' he shrieked,'but it is the will of Heaven.'He put an end to his own life" Romance of the Three Kingdoms "If you would take a man's life, you owe it to him to look him into his eyes and hear his final words. And if you cannot bear to do that, then perhaps the man does not deserve to die." Ned Stark

Friday, April 13, 2007

Nothing Ado about the ST Forum; Much ado about a Wage freeze

Here is a rather good balanced letter in the ST Forum. In fact the writer has echoed my thoughts far better than i would have expressed them.

FOLLOWING the debates on ministerial pay, one gets the impression that, like the recent anti-smoking advertising campaign, the Government is using 'scare tactics' to justify the latest round of pay hikes.
While one cannot dispute the fact that Singapore has done well over the years and that our ministers have been very well paid, such an association does not imply a causal relationship.
The people have been warned about the number of bad governments there are in the world, but is there any concrete proof to demonstrate that high pay equals good government and, more importantly, that low pay equals bad government?
In addition, high pay cannot necessarily buy or guarantee integrity, as the National Kidney Foundation scandal and Enron case amply show.
Also, extrapolations from the business world have their limits. Much has been said about the fact that a CEO is constantly being scrutinised whereas a minister only has to stand for election once every five years. I would like to add that public accountability may be further diminished by the fact that some MPs get to 'walk over' into Parliament on the back of uncontested GRC wards, election after election.
It has also been argued that a competitive pay package is required to attract the right talent with the right 'heart'. I note that the medical profession is not included in the six benchmark professions, yet every year there is no shortage of students applying for medical school. Surely this is an indication that there are many talented Singaporeans who are willing to forego better pay to serve society.
The last election gives me faith that there are many more public-spirited citizens from all professions and walks of life out there.
Lastly, I applaud the Prime Minister's decision to freeze his pay for the next five years, and his pledge to donate any pay rise to charity. He is truly a man who leads by example, and I hope that the rest of the ministers and MPs, especially those who have voiced their concerns about the benchmark, will demonstrate their 'heart' and follow suit.
Siow Tian Rui

There is currently a storm in Aaron's blog regarding the issue of LHL donating his pay increase to charity. http://aaron-ng.info/blog/pm-lee-leads-by-example.html#comment-14623

Basically to simplify matters, its an issue of whether the glass is half full or half empty. There are many who have said that Mr Lee Hsien Loong is merely doing this to pull wool over people's eyes and to try to regain moral capital. The fact that the ST stated that he would freeze his pay for 5 years does make it rather compelling.

However this brings us to another issue. If Mr Lee was some tycoon who had no links to the government, would there be such accusations? The answer is most probably no. In this instance the fact that he is linked to the government does tend to cast this gesture as a self serving one, for the sake of capital rather than out of any altriustic purpose. The fact that the media and some PAP fellas have started to give bouquets would only make matters worse.

That begs the question; how can one be in possession of the knowledge that Mr Lee is doing this for the purposes above? To put it in a simpler way, what makes Mr Lee, for lack of a better word, "guilty"?

Unfortunately there is not much "evidence" to prove the above notion. Using legal standards, he is "innocent" until proven "guilty" and as there is reasonable doubt about his actual intentions it would be premature to actually start levelling accusations against him. There is a possibility that what is happening is as Aaron has put it, 以小人之心,度君子之腹. True while the fact that PAP has always been paranoid about perceived threats and has taken action to counter it works against it in this instance, it would be easier perhaps to ask oneself why do we not give him the benefit of the doubt? Does being a PM and the son of LKY make one less worthy of being given the benefit of doubt?

To end of, lets take the example of a person i respect, the late David Saul Marshall. He was renowned for his humanitarian views and of the fact that he would defend those who faced the "Date with Darshan". In fact he did not ask for any payment from the defendant during the Nonis Trial and he also charged the poor people 1 dollar for tax purposes.

However as a lawyer he had a steep price. Apparently you had to pay upfront $3000 just to consult him. So if one applies the principle that Mr Lee is doing it for political purposes to boost his reputation, then can the same not be said of Mr Marshall, that he took those cases just to boost his reputation and gain renown? And if not, on what grounds do we apply a different standard to Mr Lee's action?

10 Comments:

  • At 1:18 AM , Blogger nofearSingapore said...

    Hi Ned stark:
    If PM had annouced BEFORE all the debate & outcry that he was going to donate all the pay increment to charity, and that he was going thru with this painful process not for personal gain or pride but because it was necessary to continually attract talented but expensive new people into the govt/civil service , it would have been more credible.
    To do so after the fact and after near universal outrage makes it difficult for neutral people to believe it is not just damage control.
    Now he looks to either being:
    1.weak and did not anticipate people's outrage or
    2.had poor advice about not annoucing it earlier
    3."flip-flopper"

    All do not enhance moral authority!

     
  • At 12:25 PM , Blogger Ned Stark said...

    Dr Huang,
    perhaps instead of using the analogy of the cup is half full or not, why not use the analogy that the cup is only a quarter full? However in this instance while i commend his decision to donate to charity i do not believe his action in anyway enhances his moral authority. I get ur point about announcing before the debate. However in typical MIW fashion the "cheerleading" by the MIW after this announcement is, in my opinion, the proverbial shot in the foot.

    But having said that, i tend to be abit cynical with regards to the effect this will have on the people. In fact its rather interesting that he chose to freeze his pay for 5 yrs.

     
  • At 1:23 PM , Blogger nofearSingapore said...

    Hi
    Ya 5 years- next election due!
    Every move is orchestrated and nothing spontaneous and sincere!
    Sick

     
  • At 5:33 PM , Anonymous Anonymous said...

    hello dr. huang!

    it's not just the timing, it's also the cheerleading and publicity and our PM-is-such-a-good-man which actually destroyed the moral authority. What moral authority can he hope to have before us? Many see it as nothing more than damage control.

    guojun

     
  • At 6:46 PM , Anonymous Anonymous said...

    I liked the analogy of the glass being "half full or half empty" and would like to borrow it for a short discussion.

    By pegging the salaries to the top earners of the private sector begs two questions:

    1. Are those on the payroll worth their salt, how would they otherwise have earned out there? The reason why there are arguments about the reasonableness of the rise and its pegs is I suppose there is no direct justification that these amounts ARE what they will otherwise earn.

    2. In taking the discount from the pegs, they are serving the nation with their glasses half full. But what is in the other half? Not necessarily just empty space. Would one fault a long island ice tea for being just one part vodka? What retains people at their jobs are a mixed bag of reasons.

    I am a fan of the utility concept at the moment. From the economics view point the questions I am interested in are:

    1. What is the least that they could be paid to retain them?

    2. What part of the utility of being in the government monetary?

    3. Is the money best spent to retain the most crucial talents given that the lower rungs have the highest attrition rates?

    4. If the answer to 3 is no, what must be done to revise the pegs or otherwise increase the utility gained by those at the jobs?

    What are in the other half of the glass?

     
  • At 7:59 PM , Blogger Ned Stark said...

    YCK,
    The use of the peg is rather flawed. As many have said there is no guarantee that if they were in those professions they would be top earners. Furthermore i believe u can find many in those professions (esp the legal profession) who are working with NO and i seriously mean NO hope of even reaching half of the median, not to mention reach the top rung.

    I believe others have said the flak is directed at the Ministers more than the civil service. I do not begrudge the lower tier and the mid tier their pay, but as i said earlier the emphasis is shockingly on the higher rung. And if one were to talk about economics in this case, then one has to go into the theory of wages. While i have given my econs back to my teachers a long time ago, if i remember a person is paid according to DD and SS factors. Since we are talking about the public sector than one must talk about the Value placed on the job. One way to do it is by using indicators.

    Mr Wang's blog has several rather intersting articles relating to this issue. and we should also take a look at the Mr Alex Au's articles on the pay increase.

     
  • At 11:13 PM , Anonymous Anonymous said...

    According to some quarter the pegs are only rational. I do not begrudge those civil servants either. Shall look into the things you flagged out :) Busy with school assignment lately.

     
  • At 9:43 PM , Anonymous Anonymous said...

    Action speak louder than words !!!
    David Marshall did its action louder than our useless ministers today.

    What did ministers promise us that they delivered ? Nothing, and nothing at all but plain rubbish. We promise them to be obedient workers but then they return us nothing ?

    $1000 max carrot for commoner = $1.2 millions min for ministers'carrot.

    A difference of 1000 times, and you called this honest gov ?

    Lick my ass !!!

     
  • At 11:43 PM , Blogger Ned Stark said...

    This comment has been removed by the author.

     
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