Lim Hng Kiang
Singapore
“The company has made commitments to recycle the ash, and as for renewable energy, the gasification project is not an energy project, it is not a generation company (genco). It is to produce hydrogen and carbon monoxide or, essentially, carbon. Because as feedstock to the petrochemical sector, you need more C and more H2.”
“The Government will continue to recover the IIA awarded if the company fails any conditions or breaches the legislative amendments. I would like to highlight that there are no errant cases in the last five years for IIA and the current amendments are, therefore, not reactionary in nature, but are being made for legislative clarity.”
“In addition, the IIA scheme will be extended till 31 December 2022. Clauses 10 to 13 give legislative effect to this change. The remaining legislative changes arising from our periodic review of the income tax system are either administrative or technical in nature.”
“Data on household and individual savings rates by income groups are not available. However, data on the aggregate level of household financial assets can be obtained from the Household Sector balance sheet compiled by the Department of Statistics.”
“The aggregate level of financial assets owned by Singapore’s household sector6 in each of the past five years is provided in Table 1 below. Data on the amount of financial assets owned by households and individuals in the different income percentiles is not available.”
“The Second Review of the Comprehensive Economic Cooperation Agreement (Second CECA Review) is ongoing. The review is taking some time as both countries have our respective interests to work through, such as in the area of labour mobility. Our agencies regularly engage Indian counterparts to work through issues collaboratively.”
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“For those who are asked to sell their flats within six months, she also asked whether we could extend it. HDB usually exercises flexibility and allows the upgrader to sell beyond the six months, giving a further extension of six months. On applicants who have sold their flats and are debarred from rental flats during the next 30 months, again, HDB will exercise flexibility. If the applicant is in financial difficulties, HDB will consider his case. Mr Kenneth Chen asked for the hand over date to be more carefully projected and if possession is taken earlier than scheduled, that we allow the applicant to sell his flat even though the occupation period is not fulfilled. Again, HDB will exercise flexibility on a case-by-case basis. Let me now turn to the set of questions on upgrading. Just to give Members the overall framework, when we look at the housing estates, we develop an estate renewal strategy for each of the old housing estates. Three of the main programmes in the estate renewal strategy are the Selective En-bloc Redevelopment Scheme (SERS), the Main Upgrading Scheme and the Interim Upgrading Scheme. Wherever possible, we will implement the Selective En-bloc Redevelopment Scheme, but it must be economically and financially viable, ie, the redevelopment potential must be at least twice the existing output of units, because we are literally tearing down the flats. We are demolishing the value of the units, and what we get is just land. So the land must be able to yield at least twice the number of units to compensate for the loss in the building cost.”
“But let me assure the House that HDB will exercise flexibility as far as it can, so long as basic principles are not contravened. Or that in exercising this flexibility, we create more problems in the long run. This is one of the basic problems of HDB. The more flexibility is exercised, the more complicated the rules. I would say that except for the ethnic integration policy where HDB has zero flexibility, on everything else we will consider requests from MPs. Let me first talk about the ethnic integration policy. This was introduced in 1989. When it was first implemented, 35 or 28% out of 125 neighbourhoods in public housing estates had reached at least one of the ethnic limits. After the implementation of the policy, the ethnic balance in HDB estates has improved. As at February 1999, the number of neighbourhoods has increased to 163, but only 29 or 18% of the neighbourhoods have reached one of these ethnic limits, and therefore the ethnic integration policy has achieved its objective in promoting racial integration in public housing estates. And I must tell you that we have achieved this by having zero flexibility. Our neighbourhoods all come in diverse sizes. So I understand Dr Wang Kai Yuen's problems, but I am very reluctant to tinker with the ethnic integration policy just because neighbourhoods are smaller. So, other than the ethnic integration policy, everything else is flexible. Let me now turn to what we can be flexible. Mrs Lim Hwee Hua asked about valuation of flats. The valuation is good for three months, and with that 3-month period, most people should be able to transact their resale flats. Sometimes we do allow extension of the valuation reports, but we do so carefully.”
“And 70% of Singaporean households will continue to afford a 4-room flat. Based on these affordability indices, we track the various sectors of the population to make sure that the HDB flats continue to be affordable to them. Dr Lee Tsao Yuan asked what has happened to the new HDB flats now that resale prices have come down. Basically, the HDB new flats have been adjusted downwards by between 5-8% last year. We did not follow the sharp drop in the resale prices, because the land that HDB buys is pegged to the resale prices. So the land prices have come down from the Land Office. The flat prices have not come down because previously the market subsidy was more than $100,000, which is out of sync with the CPF housing grant. If the CPF housing grant is around $35,000-$40,000, then the market subsidy for a new flat should be around $60,000-$80,000. So the prices of the new HDB flats now reflect this market subsidy. The new HDB flats continue to be heavily subsidised, as we show in the HDB Annual Reports. The overall sale proceeds are not sufficient to cover the total development cost and therefore the Government has to fund the HDB for the development loss incurred by way of an annual grant. In FY97-98, the deficit for the sale of flats amounted to $591 million. What I think is different in this year's debate is the economic situation that we face and therefore what is required of us is to have assistance schemes to help Singaporeans cope with the downturn, and also MPs have requested flexibility by HDB in administering existing policies, so that Singaporeans can better deal with the downturn. I hate to be glib and say flexibility is HDB's middle name.”
“Let me just set the general environment before I go into the specifics. I think Mr Kenneth Chen is right. The waiting list has dropped from 146,000 to 84,000 now, so this is a drop of 42%. Secondly, the resale prices have dropped by 27% since its peak in the fourth quarter in 1996. Third, the resale market has been very active. It was about 40,000 in 1996-1997. Last year, there were 65,000 transactions in the resale market. Fourth, our CPF housing grant has been very successful. To date, we have disbursed more than $1.3 billion on our CPF housing grant. So if you look at this backdrop, basically, the adjustments that we see in the HDB sector can be understood. What are the implications? First, on the building programme, Mr Kenneth Chen asked what we would be building. With the waiting list now more manageable, the HDB building programme will have to come down, but we will adjust it gently. The building programme in 1998 was 28,650 units, comprising 22,000 flats in the non-mature estates, 6,000 flats for SERS and 650 studio apartments for the elderly. This year, HDB plans to build 26,500 units, comprising 20,000 flats in the non-mature estates. So it is only a reduction of 2,000 flats. And we intend to keep the SERS programme at around 5,000-6,000 flats. Similarly, for the studio apartments, we hope the pilot project would work and we can continue to build around 600 studio apartments for the elderly. Over the medium term, we would have to adjust the building programme in line with the waiting list. On pricing, the principles on pricing new HDB flats remain the same. Basically, we want to ensure that HDB flats are affordable to Singaporeans. The benchmarks we use are that 90% of Singaporean households will continue to be able to afford at least a 3-room flat.”
“I think we will leave it to the court to decide on these two issues first and, if necessary, my Ministry will talk to the various participants to resolve this issue. But to intervene now when there is a court case, I think, would not be wise. Mr Simon Tay asked for more consultation so as not to diminish the reservoir of goodwill. I agree with him. I think we would try to present our plans. We do that regularly. For example, our Development Guide Plans plus any changes in land use, we do it in a very systematic way. But in specific instances, whether it is water tank in the nature reserves, I think such issues ought to be explained more, so that we can convince the public that it is a necessary decision.”
“URA also carries out field visits to confirm whether properties are actually occupied for doubtful cases. Mr Rai asked for HDB to join with private developers. I think HDB is quite tied up, with its hands full, with its own programme, without having to dabble in the private property market. He asked for HDB flats to be privatised. I have answered before that this is not something that we rule out, but it is not something in the foreseeable future. Dr Lee Tsao Yuan asked us to make sure Government policies do not contribute to the property volatility. I think we will be more careful in future Government policies. We try to be as wise as possible. I will refer to the pricing of new HDB flats later on when there is a segment on HDB flat price. Mr Inderjit Singh asked how industrial land is priced. I will refer him to MTI. Industrial land pricing policy is set by MTI. Mr Sinnakaruppan asked for a land sales review committee, much like the NWC. I think we have enough processes of dialogues with the various players. We can look at whether such a review committee is workable. I can tell you that it is not very difficult. We just set X number of units to be sold every year and we try not to deviate from that number, unless there is a major change in the environment. Mr Lew Syn Pau asked the Government to intervene to standardise the use of terms and also stipulate the legal liabilities of buyers. I think the two instances he referred to are presently in court, because there are differences in interpretation of the sales and purchase agreement and also there is no standard definition of "built-in" area or "built-up" area.”
“We take into account what is in the current stock, what is the projected demand and the supply in the pipeline. And we will announce this in September for the next year within a multi-tier framework. So it is fairly transparent and rational. Mr Inderjit Singh suggested that the Government set a 10-year land sales programme and do not deviate from it in good times or bad. This is too inflexible, because conditions affecting demand and supply of properties can change substantially over such a long period. I think the last 10 years is a case in point. It would not have been possible for the Government to totally ignore the speculative froth in 1995 and 1996 or the regional economic crisis in 1997 and 1998. Therefore, it is prudent that the Government continue with its current practice of reviewing the land sales programme every year, but within the medium-term framework. The third element of the Government's property policies is to make sure the information flow is timely and comprehensive and to encourage market transparency. We do so by having the URA to release comprehensive and timely data. This is very important to make sure that the market works efficiently, and the URA will continue to improve the quality and timeliness of these data. Mr Sinnakaruppan asked how the occupancy rates are computed. This the URA does with a standard survey method. For commercial and industrial properties, URA ascertains the occupancy through quarterly surveys of the property owners and their agents, as well as site visits. For private residential properties, the URA infers the occupancy from the consumption levels of water and electricity on Power Supply's records, ie, if the house does not record a certain level of water or electricity, we deem the house to be not occupied.”
“There are three key elements: First, we want to maintain prudential measures in the property market. Second, we want to release sufficient land to meet the medium-term demand through the Government land sales programme. And, third, we want to encourage greater transparency by providing timely and comprehensive real estate information. So let me take the various suggestions of the MPs in these areas. On prudential measures, the demand is there, especially from the HDB upgraders. The core measures like the 80% financing limit on mortgage loans will therefore remain. I agree with the views of many of the Members that we do not want to encourage another speculative bubble and therefore we should not allow easy credit to fill a new speculative boom. On the Government land sales programme, I have heard both views, for and against the resumption of the sale. Our policy remains the same. First, our property prices must remain affordable and competitive in order to retain and attract talent. Therefore, the Government has set aside sufficient land to meet the housing aspirations of Singaporeans and to ensure competitive housing for foreign talent. And we will release these lands at a steady pace to meet the demand over the longer term. The Government has suspended land sales in 1998 and 1999 in view of the regional economic crisis. We will resume land sales as soon as practicable in tandem with the medium-term demand. As I have announced earlier, the land sales decision for year 2000 would be made in September this year. We will review the demand and supply situation. In response to Mr Sinnakaruppan, let me assure him that the land sales process is fairly transparent and logical.”
“Sir, I would like to take these proceedings with the time constraint in mind. In case Members do not realise, we are all given four minutes per cut. So this segment should have taken 32 minutes, but since Members have taken 30 minutes, you will get a 2-minute response from the Minister. You have all made very eloquent speeches. Mr Simon Tay has asked the Government to listen and explain. Since I have two minutes, it shall be largely listening, and not very much explanation. Anyway, I will just take the key points. First, the correction in the property market has progressed reasonably well. These adjustments in the property values and rentals, like the reduction in wages, have ensured that we remain competitive, vis-a-vis the other international cities. The correction in the property market has been achieved without posing any systemic risk to the financial sector. This is very important because since we introduced the anti-speculation measures in May 1996, our banks have taken prudent steps to reduce their exposure to the property market. The banks are also well capitalised with capital adequacy ratios well above the BIS' guidelines. They have also made prudent provisions for their non-performing loans. Therefore, our banks are in a strong position to meet the uncertainties ahead. 1.30 pm Since we have this firewall between the property market and the financial sector, we can expect to let the property market continue its current consolidation process. The Government will therefore let the existing property market measures run the full course and there is no need to introduce any new measures at this point in time. Looking ahead, I want to stress that we will continue to stick to our long-term policies on the property market.”
“ENV and PUB have confirmed that the water quality of run-off from the golf courses located within the water catchment areas is closely and regularly monitored. PUB's monitoring so far has shown that the use of pesticides and chemical fertilisers in the golf courses has not affected the water quality in the water catchment areas, and therefore, it has not resulted in any increase in cost for treating the water. In addition, PUB regulates the use of pesticides and chemical fertilisers to golf courses to prevent pollution. Examples of some of the technical measures imposed by PUB and ENV on these golf courses are: (a) The fertilisers, pesticides and other chemicals used on the golf course must be of the non-toxic and biodegradable types approved by PUB/ENV. A monthly summary of the types and quantities of chemicals used must be forwarded to PUB for information. (b) All sewerage and sullage water from clubhouses and all other facilities must be discharged into public sewers. (c) Ponds within golf courses must be properly maintained to ensure that the water is not polluted. (d) Stringent pollution control measures must be incorporated in the design of the golf course and approved by the relevant authorities such as PUB and PCD (ENV). RISE IN ABUSE AND DISTRIBUTION OF SYNTHETIC DRUGS 35. Mr Zulkifli bin Baharudin asked the Minister for Home Affairs whether there has been a rise in the abuse and distribution of synthetic drugs and whether this is consistent with the general trend overseas involving increasing numbers of younger persons from more affluent backgrounds.”
“HDB flat sizes are reviewed regularly and adjusted to meet housing demand. In our small country, it is important that the land use is optimised. Compared to the 70s and 80s, we now have smaller family units. Hence, while we try to provide larger flats to meet the aspirations of flat applicants, the floor area of the flats must take into consideration the smaller household size of the 90s. Based on the current 5-room flat of 110 sm and the average of 4 persons per household, the living space per person for Singapore is about 27.5 sm. Even for the smallest 4-room flat of 85 sm, the living space per person is 21 sm. This is larger than most apartments in other Asian countries and comparable to many private apartments in Singapore. For example, the average living space per person in Hong Kong, Seoul and Tokyo is about 7 sm, 13 sm and 15 sm respectively. With continuous improvements in the quality and design of our HDB flats, the newer flats have better finishes and design. These flats are therefore just as functional and are of even better quality than those built previously. HDB will continue to review the design and finishes of our new flats to meet the preferences and needs of the majority of flat applicants. DEVELOPMENT OF GOLF COURSES IN WATER CATCHMENT AREAS 34. Mr Simon S C Tay asked the Minister for National Development whether the development of golf courses in water catchment areas near reservoirs results in increased chemical and other pollution that adversely affects the quality, and increases the cost, of our drinking water.”
“Town Councils are empowered under the Town Councils Act to levy conservancy and service charges (S&CC) at such rates as they may determine. Each Town Council has the power to adjust the charges to fit the standard and cost of services it provides to the residents. It should manage its own financial affairs prudently according to the desired level of services and the most effective way of allocating resources. The Town Councils have responded appropriately to the economic downturn. They have maintained the level of services as far as possible without raising S&CC. The last increase was in October 1997 and the Town Councils have pledged not to increase S&CC this year. SMALLER NEW HOUSING AND DEVELOPMENT BOARD FLATS 33. Dr Lee Tsao Yuan asked the Minister for National Development whether the new 4- and 5-room Housing and Development Board flats are smaller than the older versions and, if so, what are the reasons for the reduction in the respective areas.”
“The number of first-timers who dropped out of the Registration for Flat System queue per month has increased from about 950 in 4Q97 to about 3,000 in 4Q98. With the softening of resale HDB flat prices, about 45% of the first-timers who dropped out of the Registration for Flat System queue have switched to buy resale flats with CPF Housing Grant, instead of queuing up for new flats. Some first-timers could also have bought private residential properties. It is also likely that some rushed in and applied for the new flats when they saw the queue growing in 1996 and 1997. When they are now called up to select their flat, they do not require the flat so urgently and so prefer to drop out. REDUCTION OF CONSERVANCY AND SERVICE CHARGES LEVIED BY TOWN COUNCILS 32. Mr Tay Beng Chuan asked the Minister for National Development if his Ministry will request town councils to consider a reduction of the conservancy and service charges levied on flat dwellers and shopkeepers in Housing and Development Board estates.”
“A survey on the CIP was conducted in October 1998, one year after implementation. There was agreement amongst schools that the programme has brought about a better awareness of volunteerism, helped in character development of pupils and also enabled pupils to pick up important skills like communication and care-giving skills. Pupils have developed a stronger sense of belonging and bonding to the community. Overall, our objective in starting CIP is being achieved. The CIP coupled with other community service activities conducted by schools provides our young with good exposure to community service and involvement. As the Programme is relatively new, it should be allowed to run for a few years before we assess whether there is a need to make any changes to the number of hours required.”
“These teachers also act as counsellors to the pupils. These additional teachers help the HI pupils in their academic work as well as in their social and emotional adjustment in mainstream schools. As part of our continual effort to help HI pupils, we are studying how IT can facilitate their learning. In mainstream schools, the HI pupils receive the same resources as other pupils. We are looking into additional IT help for HI schools run by Voluntary Welfare Groups. We are also looking into the feasibility of providing FM equipment for HI pupils who can benefit from the system. We are studying the range of FM equipment that are available before we decide on the most appropriate system for our school centres. My Ministry is committed to providing the most conducive environment for our hearing impaired pupils in our schools and is constantly looking into ways to support them with resources. COMMUNITY SERVICE OF STUDENTS 13. Mdm Claire Chiang See Ngoh asked the Minister for Education if he will give an evaluation of the effectiveness of the mandatory six-hour community service rendered by secondary school students to instil in our young the value of community caring and sharing; and if his Ministry intends to increase the number of hours. RAdm Teo Chee Hean: The Community Involvement Programme (CIP) was introduced to all schools in October 1997. All pupils, from Primary One upwards, are involved in the CIP. The objective of CIP is for schools to be involved in the life of the community to foster a strong sense of belonging and bonding between the school and the community. CIP is about preparation for active citizenship. We want schools to develop meaningful relationships with the community on a sustained basis.”
“According to available statistics for 1996-1998, the number of hearing impaired pupils who enter junior colleges and pre-university centres as well as other post secondary institutions has been on the rise. Between 1996-1998, the number of HI pupils attending secondary schools averages 186 per year. The number in junior colleges and pre-university centres rose from 7 to 17 pupils, while those in post-secondary institutions increased from 34 to 85 over the same period. Training Teachers Teachers who are teaching hearing-impaired pupils in the special schools and designated school centres must have the basic Certificate of Education which is awarded by the NIE. In addition, they must undergo in-service training in NIE or in-house training which is conducted by the Singapore Association for the Deaf. The NIE also conducts Certificate in Special Education and the Diploma in Special Education for teachers who are teaching hearing-impaired pupils. Currently, 81% of teachers are trained, 6% are undergoing training and the rest are newly recruited teachers who will be sent for training. School and Remedial Centres Hearing impaired pupils who communicate through sign language attend 2 designated secondary schools (Boon Lay Secondary School and Upper Serangoon Secondary School). Resource teachers in these 2 schools use sign language to interpret lessons for the special pupils. Hearing-impaired pupils who are auditory oral attend mainstream schools and are given remedial help after school hours. From February 1999, they will be provided an appropriate remedial programme by resource teachers from MOE in 3 designated remedial centres - two primary schools (Ang Mo Kio North Primary and New Town Primary) and 1 secondary school (Delta Secondary).”
“While there are no standards at the moment, HDB has been adopting internal guidelines, which are similar to known standards such as those used in Australia, to ensure that there is proper noise insulation between flats. For each dwelling unit, the party wall and floor slabs are designed to comply with the structural and fire code. These solid masonry walls and slabs also have good sound insulation values. This is sufficient to reduce normal noise levels acceptable under ENV's standards. Mandatory standards are not without cost implications. I will nonetheless ask my officials to evaluate carefully with the Ministry of the Environment whether there is a case for such standards. HEARING-IMPAIRED SINGAPOREANS 12. Mdm Claire Chiang See Ngoh asked the Minister for Education (a) how many hearing-impaired children passed Primary School Leaving Examination and progressed to secondary school, pre-university and tertiary education from 1989 to 1998; (b) what kind of training and qualifications must teachers have to teach the hearing-impaired; and (c) what measures are adopted by his Ministry to provide the most conducive environment for our intelligent, deaf Singaporeans to lead an independent and meaningful life. RAdm Teo Chee Hean: Children who have mild hearing impairment, and are able to cope in mainstream education study in mainstream schools. They are taught together with their peers. In addition, they are provided with help from resource teachers. Those who have severe hearing impairment attend special education schools where they receive an education customised to their specific disabilities.”
“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 Lim Hng Kiang]. Bill considered in Committee. [Mr Deputy Speaker in the Chair]”
“There is no intention for BCA to be directly involved in the construction research. As for awarding of diplomas, we have the Construction Industry Training Centre (CITC) under the current CIDB. They are upgrading their courses and working with the various polytechnics. They will be in a position to award certain specialised diplomas for certain specific skills in the construction industry. So again there is no overlap with the polytechnics. Dr Teo also asked under what circumstances would BCA go into partnership for profit, etc. This is in a very confined area. For example, the old CIDB undertakes the construction exhibition every year and this is a private construction exhibition which involves a private contract and they do make profits. This is to enable them to continue to do such joint ventures. I have listened to Mr Chuang's very passionate comments about using buildability and to raise the professional standards. I fully agree with his comments. It is part of the mission of the BCA to raise the professional standards of the industry. We have tried to encourage the use of design-and-build so that consultants and contractors get together early to design and build something that is buildable and aesthetic and competitively priced. Over time, the use of design-and-build has taken on in the industry but we will continue to promote this method of construction. Overall, I would like to thank the Members for their inputs. We thank Members for the confidence that BCA would try to do all things for all people. We will try our best but, as Members realise, the construction industry is a very complex industry. It involves many, many players and I am sure we will have to do a better coordination job overall. Question put, and agreed to.”
“It is not possible to standardise the contract in the private sector because it is among contracting parties. It is between you and the other party. On private consultant panels, this will continue to be administered by BCA once PWD is corporatised. PWD would be a private consultant, just like any private consultant in the market. The body administering the private consultant panels for the Government would be transferred to BCA. Let me take the other issues raised by Dr Teo. I think the role of the BCA would also be to promote information technology, environmental protection, etc. This comes under the catch-all term of advanced technologies. Many of the issues that Dr Teo has raised about safety and structural requirements are covered under the Building Control Act. So the aim of this Bill is not to replace the Building Control Act. I endorse the comments of both Mr Chuang and Dr Teo about standardisation. One of the key features in this Bill is to put in place the legislation for buildability in two to three years' time. To be fair to the construction industry, we ought to give all the players advance notice that this is how we would want to take the industry, and we want to set certain buildability scores as the requirement to be legislated. The industry has been given due notice and we will put the legislation to have buildability scores and the methods in place over the next two to three years. In this, we will work with the industry. This is in line with Mr Lew Syn Pau's point about better communication within the construction industry. There is no conflict with the research. BCA will promote research in conjunction with NSTB and PSB. The research itself will be done by the universities or other agencies.”
“First, let me thank Members for their inputs and support of the Bill. We try in this creation of a new statutory board to undertake both the regulatory and promotion functions in a balanced manner. I thank them for their high aspirations of what the authority would do, but I must dampen all expectations. We are not intending this statutory board to undertake the centralisation of all regulatory functions over the construction industry. There are many other functions undertaken by other Ministries, whether it is the Fire Safety Bureau or the Ministry of the Environment. There are so many other technical specialities. It is not the intention of the BCA to be responsible for every speciality under regulation. What the BCA would continue to do is to coordinate the requirements of the various agencies and, where there are conflicts, try to get the government agencies to resolve these conflicts expeditiously. That I pledge the BCA would continue its functions. We have gone through this debate on whether we should centralise with a one-stop service or we should decentralise. This is a never ending debate. If I centralise, you will accuse me of being too powerful and too dogmatic, a dictator over the construction industry, and that was what happened in 1986 when we decentralised. Now that we decentralise, you say, "You are not helping us enough. Can you now undertake all the functions together?" I think we stay with the present arrangement. It has worked quite well. BCA will continue to help, coordinate the requirements and if you find conflicting requirements, we will lend our strength to get the agencies to sort out the conflicting requirements. On procurement methods, we have tried to standardise the contract at least in the public sector.”
“It is thus timely that the Building and Construction Authority be established to look into strengthening Singapore's long-term competitiveness in the construction industry. Sir, I beg to move. Question proposed.”
“Under clause 26, all persons employed immediately before 1st April 1999 by CIDB and BCD shall be transferred to BCA. The terms will be no less favourable than those enjoyed by the officers immediately prior to their transfer. The pension rights of Government employees would also be preserved under clause 27 of the Bill. Clause 36 provides for the repeal of the Construction Industry Development Board Act. This is necessary as CIDB will cease to exist with the formation of BCA. Clause 36(4)(b) will amend the name of "Building Authority" in the Building Control Act to "Commissioner of Building Control", unless otherwise provided in the Schedule to the Bill. This is to avoid confusion between the name of "Building Authority" and the new Building and Construction Authority. The same clause 36 also repeals the moribund Land Improvement Act, which was enacted in 1901. PWD currently administers sections 10 and 12 of the Land Improvement Act. The Schedule to the Bill provides for the necessary consequential amendments to some of the existing legislation. Amendments will be made to the Foreshores Act to transfer some of the functions presently under PWD to URA. References made to the "Building Authority" and "Deputy Director-General of Public Works" in the Railways Act will be amended to that of the "Land Transport Authority". The Sand and Granite Quarries Act will also be amended to allow statutory board officers to administer the relevant portions of the Act. Conclusion Mr Deputy Speaker, Sir, the construction industry will always remain an important component of the economy. The present respite from the heady days of past years allows us to refocus our efforts to upgrade the construction industry.”
“The BCA will adopt a two-pronged approach towards buildable design - developmental as well as regulatory. More details will be given separately by the BCA when the details are firmed up. Main Features of the Bill Mr Deputy Speaker, Sir, I will now elaborate on the main features of the Bill. Part I of the Bill gives the short title and interpretation of the Bill. Part II provides for the establishment, incorporation and constitution of the Authority. Part III addresses the functions and powers of the Authority. In particular, clause 9 of the Bill defines the functions of the Authority. The functions are drawn from those of the current CIDB Act and Building Control Act. Some amendments are made to make them more up-to-date. The powers of the BCA are laid down in clause 10 of the Bill. Additional powers need to be given to BCA, as compared to CIDB. This is to enable BCA to carry out its functions as both a regulator and a promoter. For example, under clause 10(a), BCA would be able to prescribe the standards for the construction industry in relation to design, processes, construction techniques, products and materials. The clauses in Parts IV and V of the Bill relate to staff and financial matters. These are based on existing provisions that the current CIDB has to comply with. In particular, clause 13 will provide for the appointment of the Chief Executive of the Authority. Clause 24 will require the accounts, financial statements and auditor's report of the statutory board to be sent to the Auditor-General, Minister and Parliament. Clauses 25 to 31 of the Bill provide for the transfer of property, assets, liabilities and employees from CIDB and BCD to BCA.”
“The prevailing economic situation, therefore, allows us a very good opportunity to restructure the industry. Arising from a fundamental review of the various Government agencies dealing with the construction industry, we came to two conclusions. One, as previously announced, the non-regulatory functions of the Public Works Department should be corporatised. Two, there would be synergy arising from the merging of BCD of the PWD with the present CIDB. Unlike other industries, the construction industry operates within a well-defined regulatory framework - this is necessary because of the strong public interests at stake. While CIDB's development efforts have borne fruit in several areas, its progress has been moderated by the fact that it is not directly involved in the regulatory framework. Putting both the regulatory and the development efforts under one body will allow the new statutory board to co-ordinate the efforts of these two arms better. The new board will be able to leverage on the expertise and experience of both BCD and CIDB, and take an integrated approach towards restructuring the industry. We have taken the opportunity to make an amendment to allow the new BCA to make new regulations pertaining to the improvement of efficiency and standardisation of design, processes, construction techniques, products and materials. This will pave the way for the BCA to require mandatory minimum buildable scores for new buildings in a few years' time. The objective is to hasten the adoption of more buildable designs which allow the buildings to be built using more productive construction methods. Although CIDB has promoted buildable designs for several years, the adoption of such designs has been slow.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Objective The Construction Industry Development Board and the Building Control Division of the Public Works Department will be merged to form a new statutory board on 1st April 1999. The proposed Building and Construction Authority Bill 1999 will provide the required legislative framework for the formation of the new statutory board. The new statutory board will be called the Building and Construction Authority, BCA. Its mission will be to facilitate the development of a professional and technologically advanced construction industry that is capable of delivering world-class buildings and infrastructure at competitive prices. Rationale Mr Deputy Speaker, Sir, let me now share with this House the rationale behind the Government's decision to merge the Construction Industry Development Board (CIDB) and the Building Control Division (BCD) to form a new statutory board. CIDB was formed in 1984 to promote the development of technology and manpower in the construction industry. It has achieved much over the last fifteen years in terms of skill upgrading, quality, productivity and advanced technologies. Skill levels have increased from about 2% in 1984 to 27% in 1998. A comprehensive quality assessment system CONQUAS has been introduced and quality scores have increased steadily since its introduction in 1988. More than 4,000 contractors and suppliers are now registered with CIDB with more than 70 local contractors in the top-most category. However, in recent years, before the economic downturn, the industry had expanded too rapidly. Productivity has slackened significantly as the industry resorted to short-term unproductive measures.”
“Sir, I want to assure the Member that the PPD will continue to allow the existing practices during the Haj period, namely, to get the supply from an approved source - that is the most important - so that the animals are not contaminated. And when they arrive in Singapore, to have the proper provisions, and allow the slaughter in the mosques under controlled conditions. Question put, and agreed to. 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 Lim Hng Kiang]. Bill considered in Committee. [Mr Deputy Speaker in the Chair]”
“To protect the consumers, clauses 6(5), 17(3), 20(3) and 23(3) have therefore been included to allow the person charged to show that he had taken reasonable precautions to prevent the commission of the offence, and that the offending act was done by someone else beyond his control. Conclusion With the enactment of the new Act, the Slaughter-houses and Meat Processing Factories Act and relevant parts of the Fisheries Act will concurrently be repealed. In summary, the Wholesome Meat and Fish Bill will consolidate, update and strengthen existing regulations on the import, export and transhipment of meat and fish products; slaughter of animals; processing of meat and fish products and wholesale of fish. In addition, it will introduce regulation of wholesale of meat and animals intended for food. Powers of investigation and enforcement have also been strengthened to ensure that the provisions of the Bill are complied with, while the high penalties would act as a deterrent to anyone contemplating committing an offence under the Bill. This will ensure that meat and fish products continue to be safe for all Singaporeans to eat. Sir, I beg to move. Question proposed.”
“Such items are deemed to be forfeited and may be disposed of as the Director thinks fit. This provision, however, does not prevent legal proceedings from being instituted against the owner of the items. Enhancement of financial and custodial penalties Penalties of $500 to $2,000 fine and one-year imprisonment provided in the Slaughter-houses and Meat Processing Factories Act are grossly inadequate in today's context. Penalties should be commensurate with the value of the goods involved and the seriousness and impact of the offence. The penalties under this Bill therefore range from $1,000 to $100,000 for fines and 1 to 3 years for jail terms. These high penalties have been set to reflect the amount and value of the imported products, which may be in the order of hundreds of thousands of dollars. If such quantity of goods were contaminated and distributed to consumers, the impact on public health would be far-reaching. These high penalties are therefore necessary. There is also provision for offences to be compounded. The maximum sum for the composition of offences is $1,000. This would allow relatively minor offences under the Bill to be dealt with expeditiously without the need for instituting criminal proceedings against the offender. "Presumption" clauses Under the existing legislation, a person found with illegally imported or processed meat or fish products can get off free from prosecution if he denies carrying out the import or processing. On average, PPD encounters about 2 to 3 such cases per year. This is not satisfactory as the consequences of distribution and consumption of large quantities of unwholesome meat or fish can be devastating to the public.”
“The wholesale trade of animals meant for food is also regulated to prevent the spread of diseases among the animals, and to control the handling of the animals which can have an impact on the safety and quality of the meat subsequently derived from these animals. Improving PPD's operational effectiveness To allow PPD to overcome resource constraints and focus its limited manpower on the critical areas, clause 3 provides PPD the flexibility to outsource less critical operations to the private sector, such as the inspection of animals before and after slaughter at licensed slaughter-houses. However, to ensure that a high standard of food safety is maintained, PPD will specify the qualifications, training and experience required for authorised examiners. Enhancement of investigation and enforcement powers Clauses 24 to 27 strengthen the powers of investigation and enforcement. Clause 25 allows the Director to detain the confiscated items in the premises in which they were found. It also requires the owner or occupier of the premises to provide reasonable assistance to the Director or veterinary public health officer in the investigation. These powers are required as the meat or fish products under investigation may be in large quantities and due to their perishable nature, can only be practically detained in the place where they were found such as refrigerated containers or cold stores. Under the existing legislation, only the court can order forfeiture of items seized under the Acts. As this often results in prolonged detention of the items and incurring expensive storage charges, clause 32(9) has therefore been included to allow the owner of the seized items to consent to their disposal.”
“The requirement for permits for individual consignments will give PPD the flexibility to impose and enforce sanitary conditions on each consignment so as to prevent the introduction of animal diseases of public health significance such as anthrax or mad-cow disease into Singapore. Provisions have also been included to enhance the transparency of licensing procedures. This also allows Singapore to fulfil its WTO obligations. Clause 8 enables the Director of Primary Production to deny anyone an import licence, or to impose restrictions on the trade if he considers it necessary to safeguard public health. It, however, also requires the Director to provide the applicant with written reasons if he refuses to issue or renew the licence or permit applied for under the Act. Clause 9 allows any person aggrieved by the decision of the Director regarding the grant, renewal, suspension or revocation of a licence or permit, to appeal to the Minister. Licensing of slaughter-houses, processing establishments and cold stores Clauses 11 and 12 require the slaughter-houses, meat and fish processing establishments and cold stores to be licensed. These provisions are largely based on the Slaughter-houses and Meat Processing Factories Act and the regulations on fish processing establishments under the Fisheries Act. These establishments will be required to meet standards set by the Director to ensure that slaughter, processing and storage conditions maintain the wholesomeness of the meat or fish products. The Director may also close any of these establishments if their condition poses a danger to health. Sale of meat and fish products Clause 22 strengthens the regulation of the handling of meat and fish in wholesale markets.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Meat and fish are highly perishable products. Unsatisfactory handling or processing can cause rapid spoilage and serious food poisoning. Currently, there are two Acts which regulate the meat and fish industries to ensure that their products are safe for human consumption. These Acts, which were enacted in the 1960s, are: (a) The Slaughter-houses and Meat Processing Factories Act; and (b) The Fisheries Act. The provisions of these Acts are no longer adequate and need to be updated. Rather than amend the relevant sections of the two Acts, it is now more logical to promulgate a new Act to regulate solely the processing and sales of meat and fish meant for human consumption. Mr Deputy Speaker, Sir, a comprehensive new Wholesome Meat and Fish Bill has therefore been drawn up. The main features of the Bill comprise four areas: (1) Regulating the import, export and transhipment of meat and fish products; (2) Licensing of slaughter-houses, processing establishments and cold stores; (3) Regulating the sale of meat and fish products; and (4) Improving PPD's operational effectiveness. I shall now go through and explain the rationale of the main features of the Bill. Regulating the trade in meat and fish products Currently, the Fisheries Act adopts a two-tiered control system of licences and permits for traders wishing to import, export or tranship fish products. However, meat traders are not licensed. Provisions have therefore been included in the Bill to harmonise the requirements for the fish and meat trade. Under clauses 5 and 6 respectively, trading licences and permits for individual consignments will now be required. All meat and fish traders will have to be licensed.”
“Mr Speaker, Sir, the Government would rather leave the setting of prices for properties to the market. Our job is just to ensure that there is an adequate supply to meet the demand as many market analysts have indicated, there is no lack of supply in the private property market. Today, we have more than 6,000 units which have been launched but still unsold. There are another 10,000 units not launched but with all the prerequisites for sale. So the developers are waiting for the right timing to launch these units. There are also another 10,000 units under planning without the prerequisites for sale. All in all, we have about 26,000 to 27,000 units in the pipeline. So there is no sense of urgency to release land for this year. We will again consider releasing land for next year towards the end of 1999. SINGAPORE TOURISM BOARD (Special allowance for hotel refurbishment scheme) 5. Mr Low Thia Khiang asked the Minister for Trade and Industry whether he will disclose the details of the Singapore Tourism Board's special allowance for hotel refurbishment scheme.”
“Mr Speaker, Sir, as announced in June last year, Government land sales for private residential, Executive Condominium and commercial development will remain suspended in 1999, except for a site at Clark Quay MRT station. We will review the demand and supply situation again towards the end of 1999 before deciding on the land sales programme for Year 2000. There is currently no change in the Government's plan.”
“The rates of change of public housing cost from 1987 to 1997 are shown in the table below. Year Total Development Cost Index (including cost of improvement) 1987 90 1988 91 1989 93 1990 120 1991 163 1992 167 1993 182 1994 198 1995 204 1996 228 1997 234 Average annual % increase 1987-1997 10.0 % The average rate of increase for the unit development cost is about 10% p.a. (compounded) between 1987 and 1997. NAGORE DURGHA 14. Mr Shriniwas Rai asked the Minister for Community Development and Minister-in-charge of Muslim Affairs whether the Government has any plan (i) to restore the Nagore Durgha; and (ii) to change the name to its proper spelling of Nagore Dargah as the name presently spelt causes confusion.”
“The statistics for September 1998 are not available yet. Based on August 1998 figures, 10,837 mortgagors (2.4% of total mortgagors) were in arrears of three months or more as compared to 6,740 mortgagors (1.6%) in August 1997 and 5,904 mortgagors (1.5%) in August 1996. For rental flats, 2,224 tenants (4.1% of total tenants) were in arrears of three months or more for the month of August 1998 as compared to 2,113 tenants (3.6%) in August 1997 and 1,568 tenants (2.6%) in August 1996. The details by flat types are appended below :- Sold flats instalment arrears > = 3 months Flat Type As at Aug 96 As at Aug 97 As at Aug 98 1 Room 13 10 16 2 Room 75 79 128 3 Room 2,206 2,271 3,600 4 Room 2,295 2,754 4,491 5 Room 894 1,152 1,838 Executive 421 474 764 Total 5,904 6,740 10,837 % in Arrears >= 1.5 1.6 2.4 3 months Units with 398,377 419,861 450,676 outstanding loan Rental flats instalment arrears > = 3 months Flat Type As at Aug 96 As at Aug 97 As at Aug 98 1 Room 524 671 662 2 Room 774 1,185 1,293 3 Room 250 244 263 4 Room 20 13 6 5 Room 0 0 0 Total 1,568 2,113 2,224 % in Arrears> = 2.6 3.6 4.1 3 months Units managed 59,687 58,127 53,741 SPECIAL FUND FOR FINANCIAL ASSISTANCE TO FAMILIES 11. Mr Gerard Ee asked the Minister for Community Development whether his Ministry will set up a Special Fund to provide financial assistance to families who have fallen on bad times, and whether such a Fund will be administered by CDCs.”
“Like any other private company, all Government-linked companies are required to comply with the provisions and requirements of the Planning Act, the Building Control Act, and the rules and regulations made under these Acts. ILLEGAL SUBLET OF JURONG TOWN CORPORATION FLATS AS WORKERS' DORMITORIES 46. Mr R. Ravindran asked the Minister for Trade and Industry what steps his Ministry has taken to prevent the Jurong Town Corporation flats located along Yuan Ching Road from being illegally sublet as workers' dormitories.”
“Any ideas or suggestions from Dr Teo will be welcomed and looked into by the Committee. REPLACEMENT OF ELECTRICAL GENERATORS AT CONSTRUCTION SITES WITH PUBLIC UTILITIES BOARD'S ELECTRICAL SUPPLY 39. Mr Chuang Shaw Peng asked the Minister for the Environment (a) what is the rationale for implementing the measure to replace electrical generators at construction sites with Public Utilities Board's electrical supply; (b) why it was implemented without notice given to the construction industry; and (c) whether he will consider postponing the implementation of the said measure for the industry to adjust without having to bear extraordinary costs.”
“(i) Number of construction workers (both local and foreign) trained, tested and certified as skilled by CITI The number of construction workers (both local and foreign) trained has gone up from about 4,300 in FY96 to about 8,900 in FY97. The figure for the first quarter of this FY is 3,330. Similarly, the number of workers tested and workers certified has also gone up significantly. In FY96, about 22,000 workers were tested and out of which, about 11,000 were certified as skilled workers. In FY97, the number of workers tested and workers certified are about 28,000 and 17,000 respectively. The figures for the first quarter of this FY are 18,385 for workers tested and 10,385 for workers certified. (ii) Incentives/schemes to attract Singaporeans to join the construction workforce The foreign worker levy makes the employment of Singaporeans more competitive while the dependency ceiling requires employers to engage Singaporeans before they can employ foreigners. There are currently also incentives for Singaporeans to receive training in construction trades. Singaporeans pay lower test fees at CITI for most of the main trades. They also enjoy further SDF subsidies of between 50% and 80% on the fees of some courses. Some of the courses offered by CITI are also recognised under the Skills Redevelopment Programme set up by the NTUC and MOM to aid the training of local workers. The Construction Brigade Scheme was also put in place to help to build up a pool of local construction workers. (iii) Monetary and non-monetary incentives for local construction firms to employ skilled Singaporean construction workers This is being considered and will be looked into by the MOM-MND Construction 21 Committee formed to review the construction industry.”
“In view of the current economic downturn and the weak property market, the Government has implemented various measures to avoid exacerbating the oversupply situation and to stabilise the property market. It has stopped land sales for 1998 and 1999, suspended the premium for the extension of the project completion period, and allowed re-assignment of land sale sites. Without compromising financial prudence, the Government has also relaxed or suspended some of the curbs on the property market implemented in May 1996. These include suspending the sellers' stamp duty for sale of housing units within 3 years of sale, and deferring the stamp duty payment for purchasers of uncompleted properties until Temporary Occupation Permit stage. The other measures have been retained for financial prudence and to prevent speculation. The Government will continue to monitor the property market closely and make adjustments to property market policies when necessary. PIRACY IN NEIGHBOURING SEAS 34. Mr Chiam See Tong asked the Minister for Communications, in view of the increasing incidents of piracy in the neighbouring seas, whether Singapore can play a more meaningful role in international efforts to control piracy in the region.”
“A total of 146,217 and 158 shop tenants terminated their tenancies in 1996, 1997 and 1998 (up to August 1998) respectively. These figures do not include those affected by redevelopment/clearance programmes. With about two-thirds of the shops eligible for sale already sold, the market rentals for HDB shops are largely determined by the shop owners and their tenants. HDB is no longer the main deciding factor for shop rentals. In reviewing market evidence of the going rent, HDB follows the market trend and does not lead it. To help shopkeepers during this period of economic slowdown, HDB has introduced a package of rent concessions in November 1996 and December 1997, eg, moderating rental adjustments at 3rd renewal, granting up to 10% rental concession for those paying above market rent and staggering increases in rent for subletting and assignment cases. In July 1998, additional concessions in the form of 10% rental rebates and passing on of the full savings of 55% property tax rebates, were introduced for a period of one year, from 1st July 1998 to 30th June 1999. Thus, various measures have already been implemented to help shop tenants reduce business costs. Nevertheless, HDB will monitor the market rent closely and make adjustments as and when necessary. CURBS ON PRIVATE RESIDENTIAL PROPERTY MARKET 33. Mr Chng Hee Kok asked the Minister for National Development if he will review and deregulate the curbs on the private residential property market in view of the changing situation.”
“Dr Teo Ho Pin asked the Minister for National Development (a) how many Housing and Development Board (HDB) shop tenants terminated their leases in 1996, 1997 and 1998; and (b) whether the HDB will consider further reducing the rental of HDB shops so as to enable shop tenants to lower the prices of their goods and services, thus benefiting consumers.”
“Under the Main Upgrading Programme (MUP), the amount lessees have to contribute depends on the cost of the upgrading works and not on property prices. The lessees co-pay a percentage of the actual construction cost for the upgrading works carried out in their precinct. The actual construction cost depends on the scope and extent of the improvement works. As construction cost has come down for precincts that were tendered recently, the lessees for these precincts would be expected to pay less for the same package of improvements. Lessees are not required to contribute to the Interim Upgrading Programme (IUP). I informed the House early this year that for 1998, the MUP has been scaled down from 15 precincts to 10 precincts and the IUP from 24 precincts to between 16 and 20 precincts in view of the economic conditions. HDB already announced 5 MUP precincts in April 1998. It will announce another 5 precincts before the end of the year. HDB also announced 18 IUP precincts in April 1998. As for the upgrading programme in 1999, I informed the House in the previous sitting that MND was preparing its FY99 budget plan for submission to the Ministry of Finance. Given the budgetary constraints that we will be facing, we have to manage our limited financial resources carefully according to the country's priorities. These priorities will take into account, amongst other things, what are the most effective measures to stimulate the economy, and will be co-ordinated across the various ministries in a concerted effort to achieve maximum impact. Whether there would be a slow down in the upgrading of HDB flats next year depends ultimately on the budget allocated to MND. HOUSING AND DEVELOPMENT BOARD SHOP TENANTS 29.”
“As I explained, that is entirely up to the advisor and his Working Committee. In the precinct, if the residents are happy and do not want to create new communal facilities, the Minister is the last person who will want to go and disturb them. It is entirely up to the advisor and his Working Committee. We are the last person to want to acquire the flats but if the majority of the residents feel that they want to upgrade and provide more communal facilities and, in so doing, they need to remove the units on the ground floor, we are prepared to offer them SERS compensation, which is very attractive. And I can assure you that the reason why we are able to persuade everyone of those in Mountbatten to give up their flats voluntarily is because the compensation is very attractive. Question put, and agreed to. 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 Lim Hng Kiang]. Bill considered in Committee, reported without amendment, read a Third time and passed. COMPANIES (AMENDMENT) BILL Order for Second Reading read.”
“That is the whole point. When we built these old buildings, we maximised the space and we built flats even on the ground floor. Later on, as we went into Toa Payoh, we tried out this concept of void decks. After 30 years of experience, void decks do provide an added advantage to Singaporeans, not just in making the estate look more spacious, it provides space for communal facilities, etc. That is why void decks have become a standard feature in HDB flats. When we upgrade the old estates, we could just upgrade all the units as they stand, without improving the estate's ambience by creating a new void deck. In some of these old estates, if there is space elsewhere to provide communal facilities, we can do so without disturbing the units on the ground floor, as we have done in Kim Keat and other areas. In some of these housing estates, it is very tight and if you want to provide communal facilities to your senior citizens or kindergartens, there is no space. One option is to remove the units on the ground floor and therefore create a void deck so that you get more spaciousness in your estate. This means you will have to compensate the people who are presently living on the ground floor. That is the whole purpose of the provision.”
“When you walk around Redhill, Queensway and Queenstown, many of the flats were built before HDB undertook to build the satellite towns in a very comprehensive way. We provided flats on the ground floor. Maybe he should walk around, besides Potong Pasir, or his party should do so.”
“Let me summarise: (1) this will be done extremely selectively; (2) the compensation package is undertaken through the SERS model which is fairly well tried out and with enough avenues of appeal; and (3) the advisor has to initiate and sanction the upgrading and make sure that this is for the benefit of the majority in his precinct. I can assure Members that there are enough safeguards and this will not be done except very, very selectively. This whole issue about the criteria for exercising power or the social impact are all covered by the advisor in his Working Committee. He has to deal with the Residents Committee members and residents. In the Main Upgrading Programme, the process takes several iterations. It goes back and forth to the residents several times before they actually take a vote on the package. Let me assure Members that these powers will be used judiciously. Just to add to the comments about the Bankruptcy Act. It is true that was covered when HDB flats were all bought by Singapore citizens. When we liberalised and allowed PRs to buy in 1989, we could have removed that protection then, rather than now. The standard sales and purchase agreement will be fair to both buyer and purchaser. It is the sales and purchase agreement that we are using today in all resale purchases. It is working well. We just want to provide the legislative basis to make sure that everybody uses the same document. We have had estate agents who provide supplements to the standard sales and purchase agreement and try to bypass the provisions. So, this is to prevent such abuses.”
“The advisor has to sell to his residents, including the residents on the ground floor, that there is not enough space and therefore acquisition of the ground floor units is part of the package. The compensation goes to HDB budget for that precinct. So, there are checks and balances. The advisor cannot go round acquiring all the units he wants because he is going to bust his upgrading project. So, the Minister is not an interested party. After the advisor has managed to sell his upgrading package to his residents, and they have taken a vote (75% say yes), they will send the plan to the Ministry and if we think that it is a sensible plan, the Minister would sanction the acquisition. And for the flats to be acquired, we are providing them the same SERS package. When I say SERS package, it means, firstly, the compensation is under the Land Acquisition Act with all its channels for appeal. It is done by an independent valuer on the date of 1st January 1995. We pay them an ex-gratia market supplement to bring the compensation value of 1st January 1995 to the present value, as at the date of the announcement. We offer the lessee whose flat is acquired a new flat in the vicinity with 20% discount in the new flat. If he cannot afford a new flat, we offer him a three-room buy-back flat. If he cannot afford a three-room buy-back flat, we offer him a rental flat. Under the SERS package, the compensation is extremely fair and we do not anticipate many problems from the people whose flats are acquired.”
“Let me explain the problem and how we are tackling it. As you know, in many of our old estates, we have flats on the void deck, on the ground floor. So when we do the upgrading, we are obligated to also upgrade the units on the ground floor. In some of these estates, the open space is very limited. So we find we cannot provide communal space for the units. In areas where we can provide communal space, there is no intention to acquire the ground floor flats in order to create the communal facilities. A good example will be Kim Keat - the first pilot project. There was plenty of space, so you can provide communal space in open space without having to disrupt the ground floor units. In the case of Mountbatten in Old Airport Road, we found the space to be very tight. There was not enough space for us to provide communal facilities. And the way we went about it was to persuade the ground floor units to give up the flats individually, everyone of them. Fortunately, we were able to persuade them and they all gave up their units and as a result, we were able to come out with a very good upgrading package which benefited everybody - the majority as well as the owners on the ground floor units. So we are introducing this amendment to address such situations where the ground floor units are occupied, where the space is very tight and we have no choice but to acquire the units in order to provide communal space. Let me assure Members that there are enough checks and balances. The Minister is not an interested party in this exercise. In fact, the whole exercise is under the charge of the advisor who is the Chairman of the Working Committee which has to work out the upgrading package.”
“First of all, let me thank Members for raising the various points. Let me just address the point on issuing of bonds. Let me assure Members that this idea of issuing bonds is not because Government funds have dried up. We wanted to raise bonds because it makes for a better and more efficient way of raising capital. Today, all housing development bonds are raised from the Government as well as from the banks, including POSB. This is not the most efficient way because HDB's development projects are long term in nature and a better matching of our requirements versus our source of funds can be achieved by having a mixture of bonds and loans. Of course, we will try to raise the bonds at a period where the cost of funds will be most advantageous to us. This will depend on the rating of HDB by external agencies and also on the market conditions at the time that we raised bonds. So, we will try to do so at a time most advantageous to us. Part of the purpose of raising the bonds is to provide the capital market in Singapore with breadth and depth. As you know, we are trying to develop Singapore as a debt centre and we are trying to provide more sources for both institutional and retail investors, a range of bond issues with different tenures and different risk ratings. To develop this market, we recognise that we should provide liquidity and ensure that the secondary market is liquid. And I am sure MAS will take up with CPF the issue of allowing CPF funds for investing in such bonds, including the HDB bonds. Second, let me turn to the issue of acquisition. Perhaps I used too much shorthand in explaining how we are going to go through it. Let me explain in greater detail. When I use shorthand like SERS and all that, I thought it would be easy for most people to follow.”