Matthias Yao Chih
Singapore
“Madam, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $247,297,100 for Head U ordered to stand part of the Main Estimates. The sum of $43,646,300 for Head U ordered to stand part of the Development Estimates. Head P – Ministry of Home Affairs”
“Individual neighbourhoods or large areas of Singapore may have to be cordoned off during the election time affecting the smooth movement of candidates, election agents, officials and voters, and the conduct of election activities.”
“South East CDC would work with the voluntary welfare organisations and grassroots bodies to develop and implement the building blocks that could help families from different parts of the needs spectrum become self-reliant. In designing new initiatives, our emphasis would be "maximum flexibility, minimum complexity�?.”
“Since its formation, NTUC Thrift has consistently given an interest rate on the small savings higher than what the banks give on their savings accounts.”
“In fact, in the new era of rapid changes in our global and domestic economies, workers need stronger social safety nets that will cushion them more effectively from adverse outcomes. This is a subject my NTUC colleagues have dealt with in the Budget debate and will continue to take up in the Committee of Supply.”
“While we should range freely to capture all good ideas, we must be extremely careful in choosing what to implement and how to do it. Like a good bus driver, we must not turn a corner too sharply as the passengers will surely be flung off their seats if we do so.”
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“If an application for such a project surfaces at the CIPC, the secretariat will evaluate the proposal, whether it links between two points that are frequently used by residents, how much the proposal is going to cost, whether it is ostentatious, using tiles that are unnecessarily expensive. All these things will be evaluated. So I cannot tell him whether a linkway will be approved at all.”
“Sir, we have not given any instruction to any CCC on how to process these applications.”
“Sir, if he is asking a question on how the CCC decides on matters pertaining to the constituency, I think this is the wrong Ministry to ask.”
“I do not know exactly what he means. But I think the grassroots leaders will decide according to the priorities of the residents in the estate and the constituency.”
“Sir, I have answered all his questions, including the one on whether any money was given to Opposition Town Councils. His Question is: how much money was disbursed, plus the composition of the CIPC and other details. I have answered all of them. If he asked whether I knew what happened between the Potong Pasir Town Council and the Potong Pasir CCC, I would have found out. But he did not ask, so I did not find out.”
“Sir, I am not aware of what transpired between Potong Pasir Town Council and Potong Pasir CCC.”
“Sir, as far as I know, the Potong Pasir CCC has not applied for any funds. Therefore, they have not been given any funds.”
“Sir, I did not evade his question. No money was given to any Town Council, PAP or otherwise. Mr Chiam See Tong: Thank you. So no money has been given at all. The next question I want to ask is: is it the policy to refuse grants for CIPC projects to Opposition-held constituencies?”
“Mr Speaker, Sir, there are 659 units of 3- and 4-room HDB flats in Blocks 1 to 7 in Sembawang Road Estate. Over the years, 220 units have been sold by the lessees back to HDB. The estate is not popular so HDB did not re-sell the units. However, HDB will be letting out these flats on fixed term tenancies under HDB's various rental housing schemes. SMALL FAMILIES IMPROVEMENT SCHEME (Progress of implementation) 3. Dr S. Vasoo asked the Acting Minister for Community Development what is the progress of the implementation of the Small Families Improvement Scheme. The Acting Minister for Community Development (Mr Abdullah Tarmugi): Sir, the Small Families Improvement Scheme was implemented on 1st January this year. Prior to the implementation, from as early as September 1993, a series of briefings and talks were held to explain the scheme to organisations. The assistance of community self-help groups, voluntary welfare organisations dealing with low income families, NTUC affiliated unions, grassroots organisations and Government agencies was sought to propagate the scheme to eligible families with whom they come into contact. My Ministry also held a press conference on 20th December 1993 to announce the implementation of the scheme and to invite eligible families to apply. As at 15th July 1994, 124 applications have been approved. ADVISOR TO COMMUNITY CENTRE (Political affiliation) 4. Mr Cheo Chai Chen asked the Acting Minister for Community Development whether there is any stipulation that an advisor to a community centre must have no political party affiliation and, if not, whether he will consider the automatic appointment of the elected Member of Parliament for the constituency as the advisor.”
“Sir, this is a question on privatisation of HDB as a company. SUICIDE OF FULL-TIME NATIONAL SERVICEMAN (Terms of reference of Committee of Inquiry) 14. Mr Low Thia Khiang asked the Minister for Defence (a) what are the terms of reference of the Committee of Inquiry to be convened by his Ministry into the suicide of full-time National Servicemen Gordon Khor Chun Keat aged 20 in Jurong Camp on 1st July 1994; and (b) whether he is aware of any prevalence of excessive punishment for relatively minor offences in the camp of the deceased and unfocused attitude of the High Command to suicidal tendencies in its rank and file and, if so, whether his Ministry will include questions concerning these matters in the terms of reference of the Committee of Inquiry.”
“Sir, that can be considered, but HDB is already doing as much as it can to actually privatise part of the operations. So we will look for more ways of doing so, and at the same time providing good public housing to the public.”
“Mr Speaker, Sir, privatisation of Government agencies or statutory boards allows self-financing organisations greater autonomy and incentive to streamline, improve productivity and expand their scope of operations. HDB has not been identified in the list of statutory boards suitable for privatisation, as it clearly does not fall under such a category. HDB incurs very large operating losses in its public housing programme, and has to be heavily subsidised by the Government. In FY 92, for example, the subsidy given by HDB in its sale of flats activity was $624 million, while the total subsidy in HDB's housing activities (which include its rental flats activity, for example) was $819 million. HDB is not a suitable candidate for privatisation. However, I can assure the hon. Member that HDB has already divested itself of many of its functions which can be privatised. For example, its estate maintenance services have been privatised with the formation of two companies, and HDB's building programme is tendered out to private contractors. Some of its new neighbourhood and town centres are being developed by the private sector. HDB's design-and-build scheme involves private architects and contractors in the design and construction of HDB flats. In the Main Upgrading Programme, the design of some of the upgrading precincts is farmed out to the private sector. The formation of Town Councils is also a divestment exercise in which the management of the new towns and the estates has been passed to those in closer contact with the people on the ground. HDB is constantly reviewing its operations and identifying further operations and functions that can be divested or privatised if appropriate.”
“In principle, yes. LABOUR WASTAGE AND UNDEREMPLOYMENT 12. Mr Chia Shi Teck asked the Minister for Trade and Industry whether labour wastage and underemployment are a problem and whether he will set up a committee to deal with the problem.”
“We are looking at the demand. So far, there is a good demand for design-and-build flats, so is there a good demand for HDB design-and-build flats. We will look at the balance and see what is a better formula. At the moment, it is 10%. The flats have not been completed. Nobody has moved into any of them yet. So we still do not know.”
“Relatively speaking, yes. Because the private sector architects will incorporate better finishes, more elaborate designs and therefore the cost of these flats will be higher.”
“Sir, certainly, we will consider this suggestion. What will happen is that when we tender land like URA parcels being tendered out and developers develop the pieces of land into condominiums and price them according to private sector prices, then that would not be public housing any more. The choice will still be between HDB-designed flats and condominiums.”
“I do not understand. Is the hon. Member suggesting that we abolish the design-and-build scheme?”
“Sir, we will look at the scheme as we go along. The design-and-build flats are, on average, more expensive than the flats designed and built by the HDB. Therefore, we would like to continue to give a choice of good, functional and affordable flats built by public sector architects. And for those who wish to have more elaborate designs built closer to private sector standards, they can choose the design-and-build flats. HDB intends to have 10% of such flats under this scheme. But if there is demand, HDB can always increase it to a higher percentage. Mr Chng Hee Kok: Sir, the Senior Parliamentary Secretary misunderstood me. I said that in view of the fact that we are already tendering out land to the private sector, maybe we should abolish this scheme completely. There is really no need to increase the percentage of flats built under this scheme.”
“Sir, this is a new scheme and the designers and contractors are learning how to work within HDB's requirements and framework. There are private sector practices which differ from public sector practices. As the hon. Member knows, there is a long waiting list for HDB flats and naturally, HDB would like the flats to be completed fast so that all the applicants can get their flats early.”
“Mr Speaker, Sir, the design-and-build scheme was launched in 1991 to provide a greater variety in housing design. Under the scheme, the HDB sets aside land within its new towns for private architects, engineers and contractors to design and build public housing. To-date, HDB has awarded seven design-and-build contracts to the private sector. Five of these have already been offered for booking. Two are located in Tampines, two in Chua Chu Kang and the latest offered in the July booking exercise is situated in Jurong West. The response to the design-and-build flats has been very good. For example, the ratio for applications to the flats available for Chua Chu Kang in the April exercise was nine times. The seven design-and-build contracts awarded so far are now at various stages of construction. The earliest to be completed is the first contract in Tampines which will be ready by the end of this year. When all the seven contracts are completed, they will yield a total of 4,643 flats. HDB plans to build 10% of its new flats under this design-and-build scheme.”
“Projections or studies by CPF Board show that apart from providing for the worker's housing and medical needs, his CPF balance at age 60, after the 5% reduction, would still be sufficient to provide him with a monthly annuity of between 20% and 40% of his last take-home pay. In view of the recent 5% adjustment, my Ministry feels that there is no need to make further adjustments to the employers' or employees' CPF contribution rate for the older employees.”
“Sir, indeed that would be the case if HDB chose the system where every first-time applicant will get his flat straightaway when he applies. I do not think that is a good solution. We are looking at the various formulas and reviewing what we should do and, in due course, we will announce the new system. CENTRAL PROVIDENT FUND (Employer's contribution for employees above 55 years) 8. Mr Goh Choon Kang asked the Minister for Labour whether he will review the employer's Central Provident Fund contribution rates for employees above 55 years of age in view of the fact that the retirement age is now 60 years. Dr Lee Boon Yang: Mr Speaker, Sir, the employers' CPF contribution rates for employees aged above 55 were reviewed last year when the retirement age was raised to 60. As a result of the review, the employers' CPF contribution rate for employees aged 55 to 60 was reduced from 12.5% to 7.5%. The employers' contribution rates for employees aged 60 to 65 remain at 7.5% and for those above the age of 65, they remain at 5% unchanged. The 5% adjustment for those aged between 55 and 60 was made to address concerns that raising the retirement age would result in higher labour costs as the wage scales were and still are very much seniority-based. It helped to reduce the cost of retaining employees beyond the age of 55. Employers were also urged to make use of the saving resulting from the 5% adjustment to upgrade the skills of their older workers through re-training. Sir, the 5% adjustment would have minimal effect on most workers' ability to meet their retirement, housing and medical needs.”
“Sir, HDB is reviewing the balloting system. We want to try to change the system in such a way that there is greater assurance to such first-time buyers so that they will be getting a flat within a certain time frame.”
“Sir, under the existing balloting system, first-time applicants are favoured in that within four to five ballotings, they will be given a number whereby they can come to HDB and select a flat. They may not actually select a flat, but they will be asked to select one within four to five ballotings. Mr Chng Hee Kok: But due to the big gap between the supply and demand in any balloting exercise, there is no assurance that first-time house owners, no matter how many times he ballots and if he is very unfortunate, he will not get his flat. How does the Government ensure that he will get his flat at some point in time?”
“Sir, the differences are in the finishes. The contract prices are open for inspection. The successful tenderers have offered certain prices and HDB chooses the best offer for coloured tiles, the best offer for better grilles and therefore, it puts all these things into calculation. HDB then calculates the subsidy to be given for each of these flats and puts up the listed price. I do not see what is the problem that Mr Low has in wanting to have details as to how much a toilet bowl costs. 1.30 pm”
“Sir, indeed there is a great demand for flats at Bukit Batok and Jurong West and many other parts of Singapore. We will try to keep the prices affordable. We will maintain the ratio of what they have to pay in instalments to the household income at 23%, which is well within their CPF contributions, and what they can pay out of their CPF accounts. The demand is there. People are willing to pay much higher prices on the resale market. Anyone who gets a Bukit Batok flat today, and he puts it on the market immediately the next day, he will probably command a far higher resale value. Therefore, to answer Mr Chng's point, indeed there is a demand and people are willing to pay those prices.”
“The price difference is based on the tender prices by the different contractors. It is not set by the HDB or the Ministry.”
“Sir, I have here [indicating] a better design, Design A, and the next page, Design B, which is not so nice, but very comfortable and functional. As for other differences, HDB has changed from white tiles for the kitchen, toilets and bathrooms to coloured tiles. Better grilles and a better type of doors are provided. I cannot categorise for each item how much the increase is justifiable because they vary from contract to contract. But from the second quarter to the third quarter, for the flats in Bukit Batok, the finishes, the facade, facilities, are indeed better, and the prices are justified.”
“Sir, HDB flats are priced under the Differential Pricing Policy, whereby flat prices vary according to differences in size, location, design, finishes and storey height, among many other factors. Flats offered for booking in different quarters are therefore not priced similarly, even for the same type of flats in the same new towns, because of variations in floor areas, features, designs and finishes. Such differences make a simple comparison of the average selling prices between quarters misleading. For instance, the 4-room and 5-room flats offered for booking at Bukit Batok in the third quarter come with better design and finishes than those offered in the second quarter. Hence, the average price differences ranging from $3,300 for 4-room flats to $12,000 for 5-room flats. As for the Executive flats at Jurong West, those offered for booking in the second quarter were flats which were not selected in previous booking exercises more than a year ago. The third quarter flats are also bigger and of better design and finishes. HDB flats remain highly affordable to the average Singaporean. Based on the average selling prices for the third quarter, the ratio of monthly mortgage instalments to median household income of the applicants for 4-room flats is only 23%. This is the same level as two years ago.”
“Sir, many citizens who fulfil the criteria can put in their applications for a new flat. I do not think we should try to restrict people from wanting to upgrade or to move from one estate to another because of their job location. Everyone is free to apply for a flat and we will deal with it in the best way we can. HOUSING AND DEVELOPMENT BOARD FLATS (Increase in sale price in third quarter of 1994) 13. Mr Low Thia Khiang asked the Acting Minister for National Development whether the following increases in the sale price of Housing and Development Board flats for booking in the third quarter of 1994 as compared with the second quarter were justified: (a) an increase of $3,300 for a four-room flat in Bukit Batok; (b) an increase of $12,000 for a five-room flat in Bukit Batok; and (c) an increase of $44,600 for an executive apartment in Jurong West.”
“Sir, I do not have the data for this question about the design-and-build scheme. When the Question comes up, I will answer it.”
“Sir, if the Member proposes that for one year we give all the new flats to new households, we can solve the problem in one year.”
“Sir, the number of new households being formed each year is about 26,000. If you take the birth rate of 40,000-50,000 and divide it by two, and they get married, you will have about 25,000 to 26,000 marriages in a year. Our building programme of 30,000 flats will, in fact, cater to the entire group of newly-formed households in one year. However, we will also have to look at upgraders and people who, for various reasons, want to shift from one estate to another for work, etc. Therefore, the building programme for newly-formed households will take care of the demand from them. The HDB and the Ministry are looking at the allocation policy to see how best we can solve this problem for new households.”
“Sir, the targets are set from year to year to accommodate the increasing demand. It is true that when prices increase, both in the private sector and public sector housing, the desire to quickly own a flat is there. For those who think they can upgrade to a bigger flat of higher value, they want to do that sooner. The key issue is whether every new household, new family, newly married couple, will have a flat soon enough to start a family in. The Ministry is addressing this issue. The building programme and the allocation programme will address this issue primarily. Whether or not we can supply executive flats for everyone who desires one is a separate issue.”
“Sir, the number is determined on the basis of various factors: (1) demand; (2) ability to clear the land and acquire it for such purpose; and (3) whether the infrastructure can support such a building programme. For example, sewerage plants will have to be built if suddenly we build a huge estate in some part of Singapore that does not have such a plant, roads, etc. Therefore, while we wish to build more flats to accommodate demand, we will have to take into account the other factors as well.”
“Sir, in fact, why we cannot have too many flats being built in a year is precisely for the reason of rising cost. This is because when you have many contractors all competing for the same resource pool of workers or construction materials, there will be a pushing up of building costs. HDB will have to balance the desire to build more flats with the desire to keep the prices affordable. Therefore, the number will have to be very carefully managed. But the assurance is that we will try to meet the demand and keep the prices low and affordable.”
“Sir, I do not know what Hougang Town Council has tried to apply for because the submission was not supported by the CCC and it never came to us. So I do not know whether it has done a good job or put up a bad proposal. It is for him to settle with the CCC.”
“Where there are good projects that benefit residents and they are well chosen projects bringing benefits to a high proportion of residents, well utilised projects that will last a long time, these projects are, of course, supported. But where town councils have applied through the CCCs and the CCCs do not think that the projects are of merit, of course, they are not supported and money is not given. They are saved.”
“Sir, the PAP Government prides itself on saving money, not asking people to spend money.”
“Sir, the allocation is $80,000 a year. Hougang CCC has not applied.”
“Sir, it is true. It is because there is goodwill between the PAP town councils and the CCCs of the constituencies. If Hougang Town Council can develop such a goodwill relationship with Hougang CCC, I am sure it can get funding for not just 75%, but more than 75%.”
“Sir, the funds are not confined to PAP town councils' use at all. There are many CCCs looking after areas that have both public housing estates as well as private housing estates. For example, my neighbouring ward, Joo Chiat, has no HDB estate. It is purely private housing and shophouses. Therefore, the best body to look after the disbursement of this fund is the CCC. It will consider priorities and whether to focus more money on a single big project or have 10 small projects in the year. It is for the CCC to consider and get the views of grassroots leaders, residents and shopkeepers. And they on their own will be able to best determine how to spend the funds. It is not true to say that the funds would be seen to be given only to PAP town councils. Because first of all, they are not given only to town councils and, secondly, nobody sees it that way.”
“Sir, I am neither in the Hougang CCC nor in a position to answer for the Hougang CCC. I think he should speak to the members or the Chairman of the CCC concerned.”
“So that is not said in sarcasm. Thank you. Sir, the funds reflected by the PAP ward town councils were grants obtained by the CCCs of the various constituencies for the improvement of those constituencies. Where the projects happen to fall within town councils' common property areas, the CCCs obtain the approval of the town councils and the HDB to carry out those projects. And in the process, the town councils were in a way acting as an agent to use those funds to carry out those improvement projects. The PAP town councils also put in their own funds to supplement the CIPC funds so that the projects can be realised for the benefit of all the residents.”
“A point of clarification, Sir. I am not a Minister of State.”
“Yes, all town councils. This is to offset the GST on S&C charges for the smaller room flats. As for the $140 million grant, I do not know which one he is referring to. Can he please clarify?”
“Sir, the circumstance is on a case-by-case basis, ie, upon the seriousness of the apron and on a goodwill basis. Sir, Mr Low says that it was the HDB, as a managing agent, which took over the premises. The managing agent is a managing agent. The Council is chaired by Mr Low. It is properly formed under the Town Councils Act. If the Council has failed to take over the premises properly, it is not the HDB's fault, it is theirs.”
“Sir, I have here a copy of the Annual Report and Financial Statements of the Town Council of Hougang 1992-1993. And in this statement, signed by Mr Low Thia Khiang, Chairman, Hougang Town Council, the pages are not numbered, but it is on the sixth page, it says here: `Hougang Town Council was formed on 5 July 1990 under the Town Councils Act (Chapter 329A). The functions of the Town Council are to control, manage, maintain and improve the common property of residential, commercial property and market and food centres in the housing estates of the Housing and Development Board (HDB) within the town.' If Mr Low does not understand what he has signed for, I cannot help him.”
“Sir, we will be guided by the technical experts as to whether a sunken apron is seriously sunken or not. I am sure the experts and professionals know how to deal with these things. If we want to enter into a discussion on how many inches of sunken apron is serious, I think we may not get anywhere.”
“Sir, HDB has acceded to requests from town councils to repair serious cases of sunken aprons due to abnormal soil settlement. This has happened before and it is done. The Member will get his answer in due course.”