Debated in Parliament on 4 Nov 2014.
Order for Second Reading read.
Thank you, Mdm Speaker. I beg to move, "That the Bill be now read a Second time".
The Constitution of the Republic of Singapore (Amendment) Bill, which I will refer to as the "Constitution Bill", seeks to amend the Constitution in five aspects.
First, to create two new judicial appointments, namely, the International Judges and Senior Judges; second, to introduce a gratuity plan for future holders of judicial and statutory appointments in place of pensions; third, to create the office of the Deputy Attorney-General (DAG); fourth, to amend the composition of the Presidential Council for Minority Rights; and, fifth, to reflect the change of name to "GIC Pte Ltd".
Mdm Speaker, before I discuss the amendments, I would like to point out that some of the amendments in the Constitution Bill are related to subsequent items in the Order Paper, as follows.
First, the appointment of International Judges is one part of the legislative amendments introduced to establish the Singapore International Commercial Court (SICC).
Other SICC-related amendments are found in the Supreme Court of Judicature (Amendment) Bill 2014 and the Legal Profession (Amendment) Bill 2014.
Second, the introduction of a gratuity plan to replace pensions is related to the amendments in the Judges' Remuneration (Amendment) Bill 2014.
Third, the creation of the office of the DAG is related to the amendments in the Statutes (Miscellaneous Amendments – Deputy Attorney-General) Bill 2014.
I will deal with each of the amendments in turn. I will start with the appointment of International Judges.
Page: 48
Our vision is to become the leading dispute resolution hub in the region. There are significant opportunities arising from the increase in the number of cross-border transactions and disputes in Asia. This increase is a result of the tremendous growth in the volume of trade, business, investment and finance in Asia in recent years.
On trade, a study by the Asian Development Bank suggests that Asia could account for half of the world's GDP, trade and investment by 2050. Last year, the ASEAN economies achieved a combined annual growth of 5%, compared to the estimated global growth rate of less than 3%. ASEAN is also working towards the ASEAN Economic Community to integrate and transform ASEAN into a single regional market with freer flows of goods, services, investment, skilled labour and capital.
Second, FDI into Indonesia, Malaysia, the Philippines, Singapore and Thailand, known as the ASEAN 5, grew by 7% from US$120 billion in 2012 to US$128.4 billion in 2013. FDI inflows to Asia have grown by nearly 30% since 2009, reaching US$400 billion as of 2012. This accounts for 30% of global FDI flows.
In Southeast Asia, nearly US$1 trillion of infrastructure investment will be required until 2020 – the next six years. Likewise, India's infrastructure sector potential is estimated to require US$1 trillion in funding from 2012 to 2017. With these opportunities and growth in the region, the number and complexity of cross-border disputes will probably increase exponentially. The need for reliable dispute resolution services will increase. This is a need that we are well-placed to meet. There are three parts to our strategy to become one of the world's leading dispute resolution hubs.
First, international arbitration. For a few years now, we have focused on developing our international arbitration services. Our efforts have yielded excellent results. Singapore is now the third most preferred arbitration seat in the world. The Singapore International Arbitration Centre (SIAC) is the fourth most preferred arbitral institution worldwide. This did not happen by chance.
Second, international commercial mediation. My Ministry has welcomed the recommendations of the International Commercial Mediation Working Group to develop Singapore into a centre for international commercial mediation. Two new mediation institutions, the Singapore International Mediation Centre and the Singapore International Mediation Institute will be set up. We are also looking at introducing a legislative framework for mediation. The SICC represents the third part of our strategy that will enable us to provide a full suite of dispute resolution services.
Page: 49
In May 2013, a Committee co-chaired by then Judge of Appeal, VK Rajah, and Senior Minister of State for Law and Education, Ms Indranee Rajah, was appointed to study the viability of developing a framework for the establishment of the SICC. It comprised international and local members to provide a wide range of expertise and views. The Committee submitted its report to my Ministry at the end of last year. We conducted a public consultation on the report, and the feedback received was generally supportive of the initiative. We also conducted a subsequent public consultation on the Bills to put in place the legislative framework for establishing the SICC. The feedback received was taken into consideration in finalising the Bills. So, there were two consultations, one before the draft Bills and one after.
The SICC, under the current framework, will be an international court with specialist jurists hearing international commercial disputes. We want the SICC to hear disputes governed by foreign law as well. The SICC will complement existing arbitration services and broaden the suite of dispute resolution options that are available to regional as well as international parties. It will attract parties who would not otherwise have come to Singapore to have their disputes resolved here. The key objectives are to grow the legal sector by bringing offshore work into Singapore and that will, in turn, give our lawyers and law firms more opportunities to tap into Asia's growth. That process has taken place in the arbitration sector. So, even when the disputes have little or no connection to Singapore, Singapore lawyers will get involved the moment the arbitration is heard in Singapore.
How will the SICC seek to achieve these objectives? We have a strong reputation for good governance, low corruption, efficiency, rule of law and a trusted legal system. The brand name for Singapore is outstanding. Our neutrality is also an important factor which will help. Our Judiciary is highly regarded as being efficient, competent and honest. It is consistently ranked highly in international surveys. Our lawyers and law firms have developed a good reputation for providing high quality legal services.
We have the "Asian advantage" in that we understand Asian context and culture. This advantage is important as arbitration users have indicated that a personal connection to the city in which the arbitration is held is one of the main reasons for selecting the venue. Thirty-seven of the top 100 law firms in the world are present in Singapore. This further helps in what we have to offer in terms of legal services.
Parties involved in cross-border disputes rely on the courts in London or New York if they do not want to arbitrate and wish to have their disputes heard in a neutral court. There is presently no equivalent default court in Asia. Our intention is to become that default court. No other country provides this option. We want to be the first and we want to succeed. The SICC will be positioned as that Court to leverage on our strengths to become the neutral
Page: 50
forum of choice for court-based litigation in this part of the world.
The SICC will provide an excellent new platform for Singapore law firms and lawyers to gain international exposure and experience. They will have more opportunities to work on high-value, complex cross-border disputes. If we are able to successfully develop our international litigation and mediation spheres while maintaining our status as an arbitration hub, we will become the key centre for legal work in Asia. The legal sector will be a direct beneficiary.
The SICC will be established as a division of the High Court. This will enable its judgments to be enforceable as judgments of the Supreme Court of Singapore. The SICC will hear international commercial disputes, including those governed by foreign law, where the parties have agreed to use the SICC, or where the case is transferred from the High Court.
Proceedings will generally take place in open court, but parties will have the option to apply for the proceedings to be heard confidentially. Proceedings before the SICC will be heard before a single Judge, or three Judges.
Foreign lawyers will have to register to appear before the SICC and appeals from the SICC in certain situations to be prescribed in the Rules of Court. This will be covered in greater detail when I speak on the Legal Profession (Amendment) Bill.
Local commercial cases will be primarily handled by local lawyers. Decisions of the SICC may be appealed to the Court of Appeal, although parties will be allowed to contractually exclude or limit this right of appeal.
Consistent with the international character of the SICC, parties may apply to exclude the application of Singapore's laws of evidence. Instead, as with arbitration, the Court may allow parties to choose to apply alternative rules of evidence which they may be more familiar with. This will help to make the SICC a more attractive option to foreign parties where the cases or disputes have little or no connection to Singapore.
I will now turn to the appointment of International Judges under the Constitution Bill. These will be persons who, in the opinion of the Chief Justice, have the necessary qualifications, experience and professional standing to be such a Judge.
The International Judges on the SICC's panel will, therefore, comprise eminent foreign jurists who will be able to hear disputes governed by foreign law. They will complement our Supreme Court Judges in hearing disputes at the SICC. The high quality of the Bench will be
Page: 51
a major point for foreign parties.
International Judges will be appointed by the President, if he, acting in his discretion, concurs with the advice of the Prime Minister. The President may refuse to make an appointment of an International Judge.
An International Judge will be required to take the Oath of Office for International Judges before taking office. This is similar to the oath taken by other Judges, but it excludes a requirement to defend the Constitution.
An International Judge may be appointed for a specified period of time, or to hear and determine a specific case. The Supreme Court of Judicature (Amendment) Bill 2014 provides that an International Judge may only sit in the SICC, and in appeals from the SICC. Where an International Judge is appointed for a specified period of time, the Chief Justice may, from time to time, require the International Judge to hear and determine any specific case or such classes of cases which the Chief Justice may specify.
Some of the Constitutional protections that are available to Judges of the Supreme Court will be extended to cover International Judges: an International Judge may resign, but may not be removed from office except in accordance with the procedure for removal set out in the Constitution. An International Judge's conduct may not be discussed in Parliament except on a substantive motion of which notice has been given by not less than one-quarter of the total number of the Members of Parliament.
The SICC will be the first court of its kind in Asia that caters to foreign parties and foreign laws. It will bring immense benefits to our legal community. And we hope to leverage on the success of our arbitration sector, and position the SICC as a complementary option that will enhance our ability to become the dispute resolution hub of Asia.
Mdm Speaker, I will now touch on the appointment of Senior Judges. These will be persons who were formerly Judges of the Supreme Court.
The objective of introducing the appointment of Senior Judges is to allow the Supreme Court to tap into the experience of the retired Judges. The process of appointing a Senior Judge is identical to that of an International Judge. The protections they enjoy are identical.
Likewise, a Senior Judge may be appointed for a specified period of time, or hear and determine a specific case. Where a Senior Judge is appointed for a specified period, he may hear and determine any specific case, or such classes of cases as the Chief Justice may specify. However, there is no provision for Parliament to limit the classes of cases that a Senior Judge
Page: 52
may hear.
A Senior Judge may sit in the High Court, the SICC, or, if the Chief Justice so requires, in the Court of Appeal. A Senior Judge will be required to take the same oath as that for the Judges and Judicial Commissioners of the Supreme Court.
We consulted the President on the appointment of International Judges and Senior Judges. The President is supportive of these amendments.
Mdm Speaker, I will now move on to the second set of amendments. These amendments introduce a gratuity plan which will replace the pensions for future judicial appointment holders, namely, the Chief Justice, Judges of Appeal and Judges of the High Court, and future statutory appointment holders, namely, the Attorney-General, Auditor-General and the Chairman of the Public Service Commission.
These amendments arise from the Public Service Division's comprehensive review of the salary framework of judicial and statutory appointment holders last year. Deputy Prime Minister Teo Chee Hean had informed the House then that, amongst other changes, the pensions of these future judicial and statutory appointment holders will be replaced by a gratuity plan. Future judicial and statutory appointment holders who receive the plan will not be eligible for any pension benefits, including post-retirement medical benefits.
The Bill confers on the President the power to, on the advice of the Cabinet, make regulations to prescribe a gratuity plan for the statutory appointment holders. Similar powers will be conferred on the President to make regulations for the judicial appointment holders. This is provided for in item 4 of the Order Paper, the Judges' Remuneration (Amendment) Bill 2014.
The regulations will set out how the gratuity will be computed, and the terms and conditions for payment. They will also provide a death gratuity to the dependants or estate of these judicial and statutory appointment holders, should these appointment holders die in service.
The provision of a death gratuity is a service benefit that is accorded to existing judicial and statutory appointment holders and all other public servants, should they die in service. The gratuities payable under the plan will be paid from the Consolidated Fund. This plan will apply only to future appointment holders. Current appointment holders will not be affected by this change. Overall, this set of amendments will make future appointment holders non-pensionable, like most public officers.
Page: 53
Mdm Speaker, I will now turn to the third set of amendments, to create the office of the Deputy Attorney-General (DAG). The Attorney-General (AG) performs numerous functions and bears numerous responsibilities. This office carries critical Constitutional responsibilities, namely, acting as the Government's legal adviser; and acting as the Public Prosecutor.
In addition, the AG is responsible for drafting Singapore's laws; and acts as Singapore's representative, both in actions by or against the Government, and in the international arena. The past few years have seen the volume and complexity of the work handled by the Attorney-General's Chambers (AGC) grow enormously.
AGC estimates that the public sector's demand for legal advisory services from AGC has grown by more than a third between 2008 and last year. The effect of globalisation on enforcement and on policy development and implementation has introduced additional work and a new level of complexity.
There has been a fourfold increase in requests for attendance in international negotiations and dispute resolution, and a threefold increase in mutual legal assistance requests. It is, therefore, timely to introduce the office of the DAG, to assist the AG in the discharge of his functions and responsibilities.
The DAG will discharge such duties of the AG as the AG may assign. This may include assisting the AG to have oversight of the day-to-day administration of criminal justice. The DAG will be a constitutional appointment, and there may be one or more DAGs. A DAG will be accorded the status of a High Court Judge and conferred the same security of tenure as that of the Attorney-General. The remuneration and allowances of the DAG will be charged on the Consolidated Fund.
Creating the office of the DAG will enable AGC to have and retain, at its apex, individuals of the same standing and ability as our Judges. The creation of the office of the DAG will also require consequential amendments to various Acts to include mention of the DAG alongside the Solicitor-General. These are found in the Statutes (Miscellaneous Amendments – Deputy Attorney-General) Bill, which I will take the House through later.
The next set of amendments deals with the composition of the Presidential Council for Minority Rights (PCMR). The PCMR's main functions are to draw attention to any legislation that contains differentiating measures and to consider and report on matters affecting persons of any racial or religious community in Singapore as may be referred to it by Parliament or the Government.
Page: 54
Presently, PCMR comprises a Chairman appointed for a period of three years, not more than 10 permanent members appointed for life, and not more than 10 other members appointed for a period of three years. The composition of the PCMR will be amended to remove the limit on the number of non-permanent members and to retain the cap of 10 permanent members and the aggregate cap of 20 members, apart from the Chairman.
The amendment ensures that the PCMR will continue to be representative of the major races and religious groups in Singapore. We consulted the President on the amendment to the composition of the PCMR and the President is supportive of this amendment.
Mdm Speaker, the last set of amendments is to Article 142(4) and the Fifth Schedule of the Constitution. This is to reflect the change of name of the "Government of Singapore Investment Corporation Pte Ltd" to "GIC Pte Ltd". Mdm Speaker, I beg to move.
*Question proposed.*
Mdm Speaker, I speak in support of this Bill. I also declare my interest as a dispute resolution lawyer in private practice.
This Bill deals with the administration of justice and includes changes to the Judiciary and the Office of the Attorney-General. Some of these amendments are to pave the way for the Singapore International Commercial Court which will be set up.
I will deal with three new appointments created by this: namely, the Deputy Attorney-General, the Senior Judge and the International Judge. The appointment of the Deputy Attorney-General is set out in the new Article 35(8) to be inserted in the Constitution. The eligibility criterion is the same as that of the Attorney-General and he is empowered to carry out any duties of the Attorney-General assigned to him. The duties of the Attorney-General are broad and include advising the Government on legal matters and acting as the Chief Prosecutor.
The size and complexities of the Singapore Government have grown along with the growth of our economy over the years. Crimes are getting more complex, too, and the size of the Attorney-General's Chambers has grown correspondingly with the duties it has to cover. In this regard, I think it makes sense to have additional senior people who may assist the Attorney-General with his duties.
Page: 55
I know that there is scope for the appointment for multiple Deputy Attorney-Generals. I am interested to know how many Deputy Attorney-Generals it is envisioned that will be appointed, at least for starters, and whether each will have distinct duties. I am also interested to know whether this appointment will have any impact on the role of the Solicitor-General, who is, currently, the most senior person in the AGC after the Attorney-General.
The other interesting change is to the Judiciary: the position of Senior Judges being created to allow Judges, who have past the retirement age, to carry on sitting as Judge either for a fixed term or for a specific case. I welcome this development. Many Judges at their retirement age are still in very good health and have a wealth of experience. A good number carry on practices as highly regarded arbitrators. So, I think it would be a shame for the Judiciary to lose their expertise just because they hit the retirement age. The Senior Judges scheme allows us the ability to continue to tap on them.
The International Judge is also a new and rather unique creation. It is very unusual for a country to appoint a foreign qualified person as a Judge in its own national Courts. This provision is to support the Singapore International Commercial Court which will have the capability to hear cases governed by the laws of other countries. It makes sense to have these Judges, qualified in the relevant laws, to hear these cases.
This concept is similar to International Arbitration where a tribunal in Singapore can hear cases governed by the laws of other countries and issue an arbitration award. The SICC, in this sense, is like a hybrid between arbitration and litigation and I would expect that for any international commercial contract, parties that would otherwise have chosen litigation before the Singapore Courts can now choose the SICC instead, especially since this gives them the flexibility of having a Judge versed in foreign law.
I believe international arbitration still continues to have some advantages over the SICC, particularly in that international arbitration awards are likely to be easier to enforce under the UN conventions, whereas an SICC judgment would still be treated as a foreign judgment. However, the SICC enjoys the usual advantages of a court procedure over arbitration, with the added advantage that a suitably qualified foreign judge may be available.
One feature of these constitutional amendments that I find interesting is the idea that Judicial Commissioners, Senior Judges and International Judges may be appointed to hear specific cases under clause 8(5)(a) or to be appointed for a specified period. The idea of a judge being appointed for a specific case is quite unique and, in my view, eminently sensible. As the practice of law gets more and more specialised, there will be practitioners who have in-depth knowledge of specific areas and it would make sense for them to be tapped to hear
Page: 56
important cases that arise in those areas.
This provision essentially allows flexibility to tap a wide range of experience since it permits the tapping of retired judges, international judges and potentially any other lawyer as a Judicial Commissioner. I can see the benefits of this procedure being used widely since it gives tremendous flexibility to find the person suited for a particular case. Once again, this is common in arbitration.
I am not entirely sure if the purpose of this provision is for it to be used widely on a regular basis or for it to be used exceptionally. If the intention is for it to be used widely, then it might make sense to also, perhaps at a later date, review the appointment procedure which still currently involves the President, the Prime Minister and the consultation of the Chief Justice. So, if we are going to get judges to hear specific cases, a more streamlined procedure might be helpful in the administration of justice.
Overall, I welcome these changes. Singapore's legal system is already one of the most highly regarded in the world and, because it is respected by both developed and developing countries, we are a popular jurisdiction for international contracts and for dispute resolution. I believe these changes will improve our system even further and provide additional impetus for parties to use Singapore as a commercial hub.
Thank you, Mdm Speaker. Mdm Speaker, the Workers' Party opposes the Constitution of the Republic of Singapore (Amendment) Bill. The Workers' Party is uncomfortable about the appointment of short-term Senior Judges who can be re-appointed after the age of 55. The renewal of these short-term positions is contingent on whether renewal is recommended by the Prime Minister and concurred by the President. The new Article 95(2) provides that a person who is 65 years of age or older may be appointed as the Chief Justice, a Judge of Appeal or a Judge of the High Court for a specified period. The Workers' Party is of the view that this weakens a concept critical to judicial independence, namely, the security of tenure.
According to the former Chief Justice, Mr Chan Sek Keong, "The freedom to choose one's government is a hallmark of democracy" and that the "governors and the governed must respect the law and all are equal before the law. But respect for and subjection to the law can only be sustained if a neutral institution exists to ensure that the law is respected and enforced against all. That institution, in all democracies, is the judiciary", and it is "the linchpin of a democratic society and the rule of law." Critically, the former Chief Justice notes, "The ability of the judiciary to fulfil such a role is by no means automatic or assured; this is
Page: 57
heavily contingent on it being an independent institution."
Mdm Speaker, these observations of the former Chief Justice appeared in a Singapore Academy of Law Journal article in 2010, titled "Securing and Maintaining the Independence of the Court in Judicial Proceedings." The former Chief Justice's thesis was that the independence of the judiciary hosted a theoretical and practical component.
The theoretical component noted that judicial independence can be secured by surrounding judges with a protective wall against pressure from political appointees, parliamentarians and pressure groups with specific agendas. This protective wall can be categorised according to what secures independence "to individual members of the judiciary and those that secure the independence of the Judiciary as an institution." According to the former Chief Justice, protection afforded by this wall gives the Judiciary the impetus to carry out its Constitutional role and gives judges unfettered freedom to adjudicate disputes without fear or favour and according to law.
What are the components of this protective wall for individual judges? They include lifelong security of tenure and remuneration, immunity from civil suits, adequate remuneration and pension rights.
What are the components of this wall for the judiciary as an institution? They include a fair process for judicial appointment, adequate funding and support for the Judiciary and respect and support for the Judiciary in general.
Mdm Speaker, the Workers' Party is of the firm belief that this amendment to the Constitution offers the Government an opportunity to strengthen and reinforce the protective wall around the Judiciary to carry out its Constitutional role.
In accordance with our manifesto, the Workers' Party is of the view that the Constitution should be amended to extend the retirement age of Supreme Court Judges from 65 to 70 years, with no prospect of extension by the Government thereafter. While extensions and short-term appointments are administratively convenient, it is the Workers' Party view that they weaken the protective wall that upholds judicial independence.
Under the existing regime, which this Bill re-enacts, it is conceivable that a Judge past the retirement age may be retained by the Government because his or her judgments are "safe" ones and are acceptable to the Government, even as the Judiciary remains a separate Organ of State. While I am not suggesting that this has occurred, such judgments may well be read as a signal by other judges who have not reached their retirement age as a factor that may determine the prospects for future judicial employment past the statutory
Page: 58
retirement age or for a permanent appointment, in the case of Judicial Commissioners. Such a prospect could threaten to breach the protective wall upholding judicial independence and confidence in the Judiciary.
It is apposite to note, as the former Chief Justice did in his article, that there was also a practical component to judicial independence – namely, that each Judge must believe in and maintain the integrity that the judicial office requires of him or her and that no protective wall can maintain judicial independence should judges be unwilling or unable to exercise personal independence in discharging their duties and functions.
Mdm Speaker, we have a first-class Judiciary. There is no reason to doubt the integrity of our Judges. However, judicial independence as an institution may well take centre-stage and remain in the spotlight in the years to come as our polity becomes more plural and as our citizens turn to the court to adjudicate or clarify disputes covering administrative action and social norms. Before that happens, the Government would be well placed to institutionally strengthen the protective wall of judicial independence so that confidence in the Judiciary remains high. Relooking at the concept of security of tenure for Judges is a good place to start.
In fact, there are some signs that the Government is working to buttress the concept of judicial independence already. In the Prime Minister's speech to Legal Service Officers (LSOs) on 20 March 2014, it was announced that a separate track would be created for LSOs. While the structure of the Legal Service remains an integrated one – hence, retaining room for improvement – this change is nonetheless an improvement from the current situation where legal officers rotate between appointments in the State Courts as Magistrates and District Judges, and as Deputy Public Prosecutors in the Attorney-General's Chambers, heightening the prospects of a conflict of interest and a potential lack of judicial independence.
The creation of a separate judicial service at the State Court level is a better measure to guard against members of the Executive from influencing the career and advancement of Judges at the State Courts, since the judicial officers' career track will now be assessed by the Judicial Branch Personnel Board and not the Legal Branch Personnel Board. In effect, what this change, as announced by the Prime Minister, does is to play some small, but not imperceptible, part in strengthening the protective wall of judicial independence. Even if this may not be the stated intention of the Government, it ought to operate as such.
Mdm Speaker, this amendment to the Constitution would have been a good opportunity for the Government to address judicial independence with an acute focus on the future of the Judiciary in Singapore. To make it better and to reinforce that protective wall. Along with the prospective introduction of a judicial service at the State Courts, it would also have been an opportunity for the Government to address judicial independence globally,
Page: 59
across the courts in Singapore.
On the other changes proposed by the Bill, the Workers' Party does not object to the setting up of an International Commercial Court and the creation of the post of an International Judge as it is not envisaged to have direct ramifications on areas of sovereign domestic law which remains the domain of local judges and because it has the potential of making Singapore a key centre for legal work in Asia.
I have a clarification for the Minister about the Government's thinking behind the possible appointment of multiple Deputy Attorneys-General. The AGC already accommodates for the appointment of a Solicitor-General and a Second Solicitor-General. What additional work is the new Deputy Attorney-General or Deputy Attorneys-General anticipated to take on? Could not taxpayer money have been better utilised to strengthen the middle ranks of the Attorney-General's Chambers if a heavier workload is the reason for the creation of the office of one or more Deputy Attorneys-General?
Finally, I seek clarification from the Minister about the replacement of pensions with gratuities for Judges, members of the Public Service Commission, the Auditor-General and the Attorney-General, going forward.
Mdm Speaker, in 2012, when parliamentary pensions were abolished, Deputy Prime Minister Teo said that "the removal of pensions will further strengthen the principle of a clean wage and align the retirement scheme of office-holders and Members of Parliament to the Central Provident Fund system." There was no replacement of parliamentary pensions with any gratuity and rightfully so. Indeed, the concept of a clean wage goes hand-in-hand with good governance and transparency.
Furthermore, in reply to a Parliamentary Question in April 2013, Deputy Prime Minister Teo stated that for judicial and statutory appointment holders, the proposed gratuity plan is essentially of the same value as the pension and is taken into account in the overall salary levels when carrying out salary comparisons. It would, therefore, appear that there is a lack of consistency in the Government's approach towards the concept of a clean wage, if, indeed, a gratuity is seen to replace a pension.
In principle, because of the competitive salaries already received by civil servants, I seek the Minister's clarification about the current rationale behind paying certain civil servants a gratuity and why it would it not have been just simpler and more consistent to have a clean wage. Mdm Speaker, I oppose the Bill.
Page: 60
Madam, I will focus my speech on the amendments relating to the Supreme Court. These amendments appear innocuous but, in fact, seriously impact some fundamental aspects of judicial power and judicial independence in Singapore.
Our Westminster system of governance separates state power into three functional and sovereign domains – the Executive, the Legislature and the Judiciary. And as the Constitution is the supreme law of the land, the final interpreters of the Constitution are the courts. To ensure that they decide without fear or favour, judicial independence is ensured through security of tenure and remuneration. Article 98 of the Constitution provides that a judge shall hold office till he reaches 65 years of age and he cannot be removed from office except under very limited circumstances of misbehaviour or ill-health. Neither can a Judge's remuneration and other terms of office be altered to his disadvantage after his appointment. These safeguards are designed to ensure neither of the other two branches of Government can influence our Judges.
Even before this Bill came before the House, the Constitution already had two Judicial Offices that are exceptions in this sense: contract Judges and Judicial Commissioners. The current Article 94(3) provides for the appointment of Chief Justice and other Judges beyond their retirement age of 65, while Article 94(4) provides for the appointment of Judicial Commissioners. More worrying is Article 94(5) which empowers the President to appoint a person qualified for appointment as a Judge of the Supreme Court to be a Judicial Commissioner to hear and determine a specified case only. These provisions leave Judges and Judicial Commissioners open to possible interference by the other two branches of Government.
Thankfully, this has not happened. But there is no guarantee that it will never happen. We should remove this risk. Instead, the present Bill re-organises and re-enacts these problematic provisions and even creates a new term of Senior Judges for Judges appointed on contracts beyond the retirement age.
Madam, the Workers' Party is opposed to such temporary Judges. These Judges are appointed for short terms, and whether they get their contracts renewed would depend on whether the renewal is recommended by the Prime Minister and concurred with by the President. The uncertainty of the appointment also carries a risk that short-term Judges would be wary of making decisions that put the Government or ruling-party politicians in a bad light and might make safe decisions so as not to jeopardise their reappointment. I am not saying that this has in fact happened, nor am I impugning the integrity of the President or the Prime Minister. But if we are to improve the design of our constitutional institutions for the long term, these provisions do not help instil the highest public confidence in the
Page: 61
independence of the Courts.
One aspect of the Bill that we have no issue with is the creation of International Judges. Though these are also short-term appointments, the International Judges will sit only in the new Singapore International Commercial Court and their expertise may be necessary to boost SICC's standing and to encourage parties overseas to submit their disputes to the SICC for decision. As these International Judges will only hear disputes of an international commercial nature, the risk of such judges worrying about not being reappointed due to the judgments they deliver is, in my view, negligible. However, the continued policy of having Singaporean Judges on short terms, or even to hear particular cases, is not acceptable to us.
However, one issue that Singapore has faced is that many of our Judges, upon reaching 65 years, still have much to contribute on the Bench. They are a wasted resource if forced to retire at age 65. To be fair, 65 years as a compulsory retirement age for a Judge is very early, considering that Singaporeans are living much longer and we are already encouraging people, in general, to work till 67. In other countries, such as the United Kingdom and Australia, Judges retire at age 70. In the United States' Supreme Court, Judges are appointed for life and many of them are still issuing very lucid judgments well into their 80s. It is timely to relook at whether the Constitution should be amended to postpone the retirement age of our Supreme Court Judges from the current 65 years to, say, 70 years, so that the country can continue to benefit from their rich experience and wisdom.
Madam, as far as the other aspects of the Bill are concerned, my colleague Mr Pritam Singh has sought some clarifications about the post of Deputy Attorney-General and the gratuity scheme. I wish to reiterate again that we have no objections to the set-up of the Singapore International Commercial Court and to the creation of the post of International Judges, as proposed in the Bill. However, we have grave concerns and object to the re-enactment and further entrenchment of Singapore Judges of temporary nature, either Judicial Commissioners, Senior Judges or the Chief Justice. Because of these concerns which are fundamental in nature, the Workers' Party opposes the Constitution amendment Bill.
Mdm Speaker, the Constitution is the supreme law of our country. It contains various provisions delineating the powers and functions of the various Organs of State, including the Legislature, the Executive and the Judiciary. The provisions of the Constitution may only be amended by the votes of two-thirds of the total number of elected Members of Parliament. Hence, any amendments to the Constitution should be scrutinised carefully to ensure that such amendments are, indeed, necessary and
Page: 62
required.
Looking at the Bill before the House today, I would like to seek the following clarifications from the Minister.
The Attorney-General's Chambers recently announced some organisational changes to its own internal structure. There are now three divisions with different senior AGC officers appointed to helm the divisions. We have the Financial and Technology Crime Division, the Criminal Justice Division and the Legislation Division. In addition, we have, currently, the Solicitor-General, Mr Lionel Yee, who is a former Judicial Commissioner.
If the AGC is able to organise itself internally, why is there a need to have the appointment of Deputy Attorney-General institutionalised into the Constitution? I recognise the Bill states the intent for the Deputy Attorney-General to perform such duties of the Attorney-General as may be assigned to him or her by the Attorney-General. But is there really a need for such an office to be specifically provided for and protected under the Constitution? Surely, the Attorney-General can appoint a Deputy Attorney-General within the ambit of the office of the AGC without the need to amend the Constitution. Perhaps, the Minister can clarify on the role of the Solicitor-General as well.
Next, it is a fundamental principle of the Constitution that the Judiciary is independent so that the Government will not be able to influence any decision of the Judiciary.
Clause 8 of the Bill amends Article 95 of the Constitution to provide for the appointment of a Judicial Commissioner, a Senior Judge and an International Judge of the Supreme Court. Article 95(5) provides that the Judicial Commissioner, a Senior Judge or an International Judge of the Supreme Court may be appointed for a specified period only.
I would like to seek the assurance of the Minister as to the intent of such a provision. We should not depart from the fundamental principle that Judges should have security of tenure so that they can exercise their judicial independence without fear that their tenure of office will be affected. I acknowledge that in the appointment of a Senior Judge, the Prime Minister must consult the Chief Justice who will give his input as to the appointment. I also recognise that a Senior Judge is expected to be a person who had ceased to be a Judge of the Supreme Court. So, perhaps, the Minister could clarify as to the intent of the limited term of appointment.
Finally, may I ask the Minister whether the usual qualifications of a Judge under Article 96 of the Constitution would apply to the appointment of an International Judge of the Supreme Court? Whilst I applaud the intent of MinLaw to promote Singapore as a leading
Page: 63
venue for dispute resolution, I certainly hope that we will allow sufficient opportunity for our local senior lawyers, Senior Counsels, retired Judges to be also considered for appointment as an International Judge of the Supreme Court. We should be mindful about appointing foreign senior lawyers as International Judges of the Supreme Court without giving proper consideration as to whether any of our own local lawyers or retired Judges would be suitable.
I will speak more about the gratuity payable to judicial officers at the Second Reading of the Judges' Remuneration (Amendment) Bill. Subject to the above clarifications, I support the proposed amendments to the Constitution.
Mdm Speaker, thank you for allowing me to join in the debate. This Bill seeks, among other things, to create the office of Senior Judges and International Judges for our Supreme Court.
The backdrop for these changes is the innovative introduction of the Singapore International Commercial Court (SICC). This is going to be a new division of the Supreme Court designed to hear international cases, that is, disputes with little or no connection to Singapore other than the parties choosing to litigate here. If the SICC succeeds in its goal to attract international court based disputes, this will cement Singapore's position as a paramount centre for dispute resolution in nature; in the same way that London is the pre-eminent centre in Europe. It will build on the success of our Singapore International Arbitration Centre and enhance the choices available to parties who have disputes to resolve. They can choose litigation, arbitration or even mediation, all in a neutral, modern and cosmopolitan setting, which is designed to make international entities feel they can get justice in Singapore.
The last point is vital. International users feel that they will get fair and equal treatment in Singapore even if they have no connections here. It is thus important that we do not overlook the "I" in SICC, which stands for international. Users must feel that this is an international court situated in Singapore, rather than a domestic forum with limited understanding of transnational issues. To that end, the Judges who hear these cases must not exclusively be Singaporeans, notwithstanding the deservedly high reputation of our Singapore Judges. It will assure the Singapore community and the international community if well-known jurists from other countries sit on occasion to hear such cases, as the SICC will benefit from the experience and knowledge of cases with international features. It will also send a strong signal that SICC is truly an international forum for the parties to litigate here
Page: 64
and the foreign counsels who argue their cases here and the foreign Judges who hear these arguments, together with our Singapore Judges.
It is thus a necessary and welcome step to permit the appointment of suitable persons who, in the words of the Bill, have the necessary qualifications, experience and professional standing to be International Judges. But can I ask the Minister to clarify these rather general criteria or, at least, specify the sort of qualifications and experience being looked for? Otherwise, it does seem a very wide brief to be given to the Chief Justice to recommend candidates for International Judges.
The appointment of International Judges will be for specific cases for specified periods, so there is little danger of creating a surfeit of Judges. On the contrary, the increased workload of the Supreme Court, if it starts to hear more international cases, will put a strain on our judicial resources. This is where the appointment of retired Judges as Senior Judges again or specific cases for specified periods will help to plug the gap. Our Judges have judicial tenure up to age 65, but many of them still have the energy and commitment to contribute to the legal landscape. It would be a great pity to lose the benefit of their collective wisdom and experience. The appointment of Senior Judges on an ad hoc basis is thus an efficient manner in which we tap on the qualities of our retired Judges.
It thus puzzles me to hear opposition from the Workers' Party to these changes, to argue that this weakens one of the pillars of the rule of law by undermining the security of tenure of Judges. We currently have security of tenure of Judges up to age 65. This Bill does not to seek to change that. In many countries which do have security of tenure, there are mandatory retirement ages. For instance, in the United Kingdom, there is a retirement age of 70. In United States, there is life-long tenure for Supreme Court Judges, but this has been criticised by many commentators as, in a sense, giving a Judge a licence to go on for longer than his shelf life. Currently, we do have the provision to extend Judges who reach the age of 65. One example is the ex-Chief Justice, whose sage words Mr Pritam Singh quoted. So, I fail to understand how appointing retired Judges for specific cases for specified periods in some way undermines the protective wall around the independence of our Judiciary.
Ms Sylvia Lim also thought that appointing Judges for short terms might have them worrying about being reappointed. But the Senior Judges we are talking about are retired High Court Judges. They are not short-term Judges. They have already been selected and appointed as High Court Judges and served a full career as a High Court Judge, with security of tenure up to age 65. To be able to tap on them, either for a specific period or specific cases, to me, is a cost-efficient way to be able to address shortages in judicial resources when the caseload of the High Court gets too heavy, and to be able to tap on their collective wisdom and qualities for specific cases. I do not see in that any danger that they will suddenly
Page: 65
become short-term in their thinking and this somehow undermines their independence.
So, far from breaching the protective wall around the independence of the Judiciary, I see these changes as strengthening our Judiciary and, thus, upholding the rule of law. Mdm Speaker, I support the Bill.
Minister Shanmugam.
Mdm Speaker, I thank the Members for supporting the Constitution Bill and will address the concerns that they have raised.
Mr Vikram Nair raised a query as to how many Deputy Attorneys-General will be appointed, at least at the start, and how this appointment impacts on the role of the Solicitor-General.
On the question as to how many DAGs will be appointed and what their duties will be, our intention is to largely leave this to the Attorney-General to determine according to the organisational needs of the Attorney-General's Chambers. At the beginning, we think there will be one.
How does the DAG interact vis-a-vis the Solicitor-General? The Solicitor-General will be the Permanent Secretary-equivalent for the Attorney-General's Chambers.
I thank Mr Nair for his suggestion that the appointment process for Judicial Commissioners, International Judges and Senior Judges could be made simpler. We will consider his suggestion. But this is what we think works now.
Let me now turn to Mr Lim Biow Chuan's comments. Mr Lim noted that the internal organisational changes in the Attorney-General's Chambers were made public recently and queried the need to make amendments to the Constitution to appoint the Deputy Attorney-General. The internal organisational changes are meant to streamline the internal processes. The amendments to the Constitution are required because the Deputy Attorney-General will enjoy the same security of tenure as the Attorney-General.
Mr Lim also made some comments in respect of the independence of Judges. I will take those comments when I deal with Ms Lim's and Mr Pritam Singh's comments.
Page: 66
I welcome Mr Alvin Yeo's points. As regards the discretion that is given to the Chief Justice on International Judges, the intention is that we want the Bench to be of an outstanding quality. It is difficult to prescribe, through legislation, who they are or where they will be from. But there are a number of checks and balances. It has ultimately got to be on the advice of the Prime Minister and agreed to by the President. And our intention is that this will be a Bench that will attract international work. If you do not appoint people of that quality, you simply would not get work. So, I think we have to look at how the process goes, but I take the point.
Moving to the points made by Ms Lim and Mr Singh, in a sense, their speeches relate to amendments which are not being made. It is not so much that they oppose the amendments that are being made. They are saying that this is an opportunity, since we are amending the Constitution, why do we not change parts to make sure that there is no possibility of appointing Judges or Judicial Commissioners for the short term. I take it that, specifically, and I heard them say that for the SICC and the related amendments, there are no objections. The objections are in relation to the appointment of Judicial Commissioners and Senior Judges, which is, in fact, a continuation of the existing practice, except that we are introducing the category of Senior Judges.
Now, let me take that at two levels. The first is the broader philosophical issue. Of course, security of tenure is important, and that relates to independence. We now guarantee Puisne Judges up to the age of 65. Should we make it absolute to age 70 or such other age and should we not make the practical adjustments that we have made in respect of having appointments like that of the Judicial Commissioners?
In an ideal world, that, I think, is an approach that should be considered and, fundamentally, we do not disagree. But the point is, you have to take the profession as you find it and then you have to try and fit the rules as best you can. If you are too theoretical or too dogmatic about this, in the end, you will not have the Judiciary that we have had with the outstanding reputation that it has. It has that reputation. It is highly ranked by the World Bank and other such institutions precisely because of the approach we have taken.
What is the balance between giving them security and the practicality? The practicality is that we have a small Bar, a small pool and an even smaller pool of talent of the quality to become High Court Judges and Chief Justices. If you approach a lawyer from the private sector, many of them – as Mr Lee Kuan Yew explained to this House long ago when he was dealing with Judicial Commissioners – have indicated and continue to indicate that they do not want the appointment as Puisne Judges immediately. They would rather come in as Judicial Commissioners (JCs) – take a short-term appointment, take it for three years and then decide whether they want to continue or whether they want to go back into practice.
Page: 67
Some have stayed, some have gone back.
If you do not give that flexibility and if you are like some other countries where perhaps you have 100 people who can become High Court Judges, yes, then you have a wealth of talent. But if you have very few, then you need to make that adjustment and we have, therefore, provided for the appointment of JCs which has worked very well. Outstanding Judges, some of them started out as JCs – Chan Sek Keong, for example, possibly the greatest jurist of his generation, decided he would stay on and then he became the Chief Justice.
In the context of the point made by Mr Singh about independence, I do not think anyone questioned his independence, even though he was renewed for short terms after he turned 65.
I do not disagree with the fundamental point. I am just saying that those fundamental points sometimes have to be leavened with a practicality of a small Bar, which is what we have. And it is a very small talent pool. So, really, what we should be looking at is appointment of persons of the right timbre. At the end, that is your best guarantee. And judgments are public – we have a highly educated public, they can look at the judgments and decide whether the Bench is or is not of the quality that we want.
Now, the other points, and I do want to emphasise, this is not really about the amendments we are making, it is about the amendments that they wish we were making. But I will deal with it in this broad way anyway. Two other points that were made by Mr Singh is, first of all, the Deputy Attorney-General – why? I think there was a gratuitous point about taxpayer's money, the suggestion being that we are wasting taxpayer's money. Really, let us just be quite fair about this without being theatrical. Of course, the Attorney-General's Chambers is strengthening its middle sector. It has expanded substantially in the last few years. It has taken on a lot of officers.
At the same time, the Attorney-General spoke with us and said that he felt the need for someone at the Deputy Attorney-General's level. We are people who take the views of our Chief Justice and Attorney-General very seriously. How does he interact vis-a-vis the Solicitor-General? The Deputy Attorney-General will be the equivalent of a High Court Judge and that is why we are making the Constitutional amendments. He will be between the Attorney-General and the Solicitor-General. And the Attorney-General needs a person of the calibre of a High Court Judge who is constitutionally protected and has his salary paid from the Consolidated Fund, to do the duties that the Attorney-General may give to him to do to help the Attorney-General manage AGC. There is a need for that, and also to deal with a substantial increase in other aspects of work, including criminal work.
Page: 68
Now, as regards clean wage, there is no inconsistency at all in the position that is being taken. Deputy Prime Minister Teo said to this House that the Judges' salaries were at about the right level, as determined by the committee that was appointed. He said last year that the outcome of the PSD's review was the appointment holders are paid at about the right level in order to recruit and retain persons of high ability, integrity and commitment to hold such key appointments, which included pensions. So, pensions were computed and that was part of the package.
Salaries of Judges were delinked from salaries of political officeholders. Political officeholders do not get pensions. But Judges continue to get pensions and we have been very careful. By way of a Constitutional amendment, for example, you could have removed pensions of current Judges, but we do not want to do that.
This amendment relates to future Judges who will be appointed and we want to move them from the pension system to a gratuity system. The main difference is two-fold. One, they will not get monthly payments; and, second, there will be no post-retirement medical benefits. They will get a lump sum at the end of their tenure. And that is the way that most of the Public Service has moved.
The amounts were at the right level. The way you quantify that amount, we are trying to make sure that it is consistent with the rest of the Public Service. And this is the opportunity to make the Constitutional amendments without impacting on the current Judges because we do not want any suggestion that we are making changes to their income in a way that is detrimental to them. We are being quite careful about the way we are making this amendment. I think I have dealt with the questions that have been raised. Thank you, Madam.
I have one clarification to make and two clarifications for Minister. First, the Minister mentioned that Mr Pritam Singh and myself were speaking more on the changes which we wish the Government was making rather than the changes that it is making. But the point is that in this Bill the Government does reorganise those provisions that allowed for temporary Judges so we have to take a stand on the Bill because of this.
Second, I would like to ask Minister whether I heard him correctly that he says that as a matter of principle, he does not disagree that having Judges of short tenure actually undermines the principle of judicial independence. I would like him to clarify because that was the sense which I have got from him.
Page: 69
And the second clarification for Minister is that he mentioned that we have a small Bar and the practical matter was that it may not be so easy to find people who are willing to take on the judicial appointment. But I do notice that in the current High Court Bench, for example, although many of them, if not most of them, started as JCs, quite a number of them continued on to be confirmed as Judges without taking a break at all to go back to practice. So, is it a question of just finding the people who see taking on judgeship as a vocation and are willing to go into it without thinking about practice?
I will deal with the two questions. The first is an observation which I do not think requires a response. Do I agree or did I say that, as a matter of principle, the short-term appointments undermine the principle of judicial independence? I think maybe Ms Lim and, perhaps, Mr Singh, will be the only two people in the House who might have gotten that impression. It is the very opposite of what I said.
What I was saying is that, as a matter of principle, I agree that we should try and look at giving security of tenure and, we do, for Puisne Judges, up to the age of 65. But you also make adjustments and, in the context of a small Bar, the difficulty of getting people and the need for people to come in for a short term and go off. You make your adjustments. It will not undermine judicial independence. Indeed, our Judiciary already has all these structures, and the only change that is being made here is the appointment of Senior Judges. Other than that, everything is the same. With all that existing structure of Judges after 65 being appointed for short terms, even the Chief Justice was reappointed – Chief Justice Yong Pung How and Chief Justice Chan Sek Keong had more than one short-term tenure extended a number of times. The independence of our Judiciary is something I do not think you challenge, I do not think anybody else challenges it, and we are very highly regarded and ranked. So, I believe that the current structure does not undermine the principle of judicial independence or integrity. And, indeed, we rank very highly. But I do agree also that, where possible, we should move towards greater security of tenure. So, there is a slight difference in emphasis.
As regards the third point – I am not quite sure. Can I ask Ms Lim to repeat the third point so that I can respond?
I was referring to Minister's earlier explanation that because we have a small Bar, there was a limited pool of people whom you could tap on. So, some people wanted to go back to practice after trying it out and so on. But what I was saying is that in the current Supreme Court Judiciary, I do note that, I think all of them started off as JCs, but some of them never took a break to go back to practice – as in, they probably went into the JC-ship, well, with the intention, hopefully, to make the Judiciary post a career in that sense.
Page: 70
Yes. I understand. By definition, those who became Judges obviously did not go back. That is why they remained as Judges. There are those who have left. And we believe that they contributed. We believe that having such a system where they come in for a two- or three-year appointment, and then let them make the choice, and also the Chief Justice sometimes will recommend that they are very good lawyers but they may not have the right judicial temperament. So, that has allowed us to have the flexibility, without really, I think, anyone questioning their independence or integrity. Therefore, we have not sought to change that system.
And up to now, I can tell Ms Lim that when practitioners are approached, often, their preference is to come in as Judicial Commissioners, and then decide. They often say to us, "We do not know whether this is something that we can do." It is not a question of aptitude. It is not a question of wanting to contribute. It is not a question of taking a salary cut. Even when they are prepared to do all that, they do not know whether they would be cut out for it. It is a very harsh isolated life and it is very hard work. So, combine the two, some people have told us they would prefer to go back. So, I think it has worked well. With the touchstone that, as far as possible, as our Bar increases in size, in depth, in quality, we should try and move towards greater rather than lesser security. With that caveat, I think, at this point in time, these changes would greatly enhance the reputation of our Judiciary. Thank you.
The Question is, "That the Bill be now read a Second time." Pursuant to Article 5(2) of the Constitution, a division is taken to ascertain that the Second Reading of the Bill is supported by the votes of not less than two-thirds of the total number of elected Members of Parliament, which is 58 Members. Clerk, ring the division bells.
After two minutes –
Serjeant-at-Arms, lock the doors. Before we proceed to start the electronic voting, Members are advised to read the voting instructions, which are found in the left compartment of your seats, where the ear-pieces are placed.
Question put, "That the Bill be now read a Second time."
Take a division. Members may now begin to vote.
Are we involved?
Nominated Members of Parliament and Non-constituency Members of Parliament are not involved.
Page: 71
Page: 72
There are 68 "Ayes", seven "Noes", zero "Abstention". The Second Reading of the Bill has been carried by the votes of not less than two-thirds of the total number of elected Members of Parliament.
Bill accordingly read a Second time and committed to a Committee of the whole House.
The House immediately resolved itself into a Committee on the Bill. – [Mr K Shanmugam].
Bill considered in Committee; reported without amendment.
Third Reading
Third Reading, what day?
Now, Madam. I beg to move, "That the Bill be now read a Third time."
The Question is, "That the Bill be now read a Third time." Pursuant to Article 5(2) of the Constitution, a division is taken to ascertain that the Third Reading of the Bill is supported by the votes of not less than two-thirds of the total number of elected Members of Parliament, which is 58 Members. Clerk, ring the Division Bells.
After one minute –
Serjeant-at-Arms, lock the doors.
Question put, "That the Bill be now read a Third time."
Take a Division. You may now begin to vote.
Page: 73
Page: 74
Yes, Mr de Souza.
Mdm Speaker, a point of clarification. I have voted "Yes" the first time round but it may not have been registered. So, I think I am the reason for the "extra" one. If I could be recorded as "Yes" for both the Second and Third Readings. Thank you.
So, you wish to be recorded "Yes" for both the votings?
Yes, indeed.
Mr de Souza, we do have a problem because you did not press "Present". So, our system did not record your vote. We have already announced the votes. We know that your heart and mind are on supporting it. It will be reflected in the proceedings but we cannot go back on the votes
Very well, Madam. Thank you. I did press "Present". I did. Thank you.
Yes, Ms Foo Mee Har, you have a problem, too?
Madam, I would like to be the witness that Mr de Souza pressed "Present" many times and pressed "Yes", and I tried to help him as well. I think we just want to put on record that he did take the necessary action. I think Madam may want to check the system. Thank you.
We have checked the system many times but we take your word for it and will reflect it in the notes of proceedings. Thank you.
There are 69 "Ayes", seven "Noes", zero "Abstention". The Third Reading of the Bill has been carried by the votes of not less than two-thirds of the total number of elected Members of Parliament.
Bill accordingly read a Third time and passed.
Page: 75