MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE - FOR THE FINANCIAL YEAR 1ST APRIL 1984 TO 31ST MARCH 1985
He said that the Government should accept the responsibility to resettle everybody in that resettlement area. Sir, by "everybody", he means any person with two hands and two legs in that area. So that must include work permit holders, non-citizens and perhaps even illegal immigrants. So we must have a set of rules and only those citizens who are qualified to be resettled will be offered alternative accommodation for resettlement. As regards the Craig Road case of people sleeping on the five-foot-way, I just want to inform the House of the position. When the Government acquires land, compensation will be based on two different situations. One is vacant possession. This means that the owner of the property is able to deliver his property without encumbrance, which means there are no tenants, and the owner will be entitled to a higher compensation. The other one is encumbered land, which means there are tenants. Usually encumbered lands are rent-controlled properties with tenants. But at times the owner of a rent-controlled property manages to get the tenants out and therefore he is able to deliver the property with vacant possession to the Government and claim for a higher compensation. In this particular case in Craig Road, the owner was able to go to the court to evict his tenants on some legal grounds. The owner was able to obtain a court order to show that the occupants of the property are not legal tenants. Therefore, the owner, in fact, was able under the law to deliver the property with vacant possession to the HDB, although the tenants claimed that they had been tricked by the owner's lawyers or representative into signing a certain agreement to vacate the property. But Government is not involved with that. That is a matter between the property owner and the tenants. Since the court has given the order that there is no legal tenant on the property, the owner is entitled to compensation for his property with vacant possession. And since the owner is getting an enhanced compensa- tion, there is no obligation on the part of the Resettlement Department to offer any alternative accommodation to anybody because the property is unencumbered. 3.15 pm The Member for Nee Soon raised several points. Normally, clearance cases are offered resettlement facilities within a period of six to 12 months after the occupants of the land have been served with notices to quit. However, sometimes they may have to wait for a longer period because the particular type of alternative accommodation requested by the resettlement cases are not available. For example, we have a lot of 3-room flats available but the reseftlement cases want only 4-room and 5-room flats. But 4-room and 5-room flats are under construction and are not yet available. Therefore, they have to wait. At other times the alternative accommodation is available but not in an area that they want. The flats are some distance away. They will say, "No, I will wait for a longer time because I want that particular locality." For this reason, the clearance has to be delayed for a longer period. But if the people affected by clearance really want to get accommodation quickly and are not so choosy and accept the alternative accommodation offered by the HDB, then the resettlement process can be speeded up. On the question of acquisition of land where the Government develops a whole area for a new town, for example, Yishun. To develop the whole Yishun New Town, Government has to acquire a very large chunk of the land comprehensively for the whole new town and has to avoid piece-meal acquisition. This is essential because this will simplify the administration of planning procedures and also avoid creating uncenainties on the part of the landowners. If we acquire it piece by piece, then the landowner in that area may get a bit worried. He might wonder whether his land will be acquired or not. So we acquire the whole ares in a single exercise. Then everybody knows that the whole area is acquired, and those pieces of land not acquired are not likely to be acquired. Because the Government acquires a huge area of the land, it is not possible for the Government to clear the whole area at once. Again, the clearance has to go by phases according to the priority of development. If a certain locality is needed for urgent development, then the clearance in that locality will be given priority. But for areas where development will take place later, then we delay the clearance. As regards TOL, those tenants who stay on the land awaiting resettlement pay the same TOL fee. Just for argument's sake, if a tenant had paid the former landowner a rent of $100 per month, he will continue to pay HDB $100 per month. There is no change of rate for the TOL fee. As for the property owner, if his property has been acquired by the Government, the HDB at present charges him a TOL fee of 10% of the acquisition cost. This fee is only payable when the Board takes possession of the propeqy and when the full quantum of compensation has been duly paid to the land-owner. But since the ho n. Member for Nee Soon has appealed on their behalf that the 10% TOL fee is rather high, I have decided to ask HDB to reduce the fee to 6%, effective from 1st April 1984. On the question of priority for the allocation of alternative commercial accommodation, this in fact is a very difficult problem. I appreciate this because this actually amounts to an adjustment of a life-style. Unfortunately, because of the shonage of land in Singapore, farming cannot continue to be a way of life for the farmers because the areas under farming are required for various developments. So our farming area will continue to be reduced and farmers will continue to be affected by resettlement and they will have to change their life-style and their profession. On the question of farmers asking for hawker stalls, yesterday there was already a long discussion on that. So there is no point for me to repeat it here. As for shops, I understand that in the Nee Soon Constituency the farmers and also the shopkeepers insist on having shops within Nee Soon itself. Unfortunately, the first lot of 30 shops was only completed at the end of last year. Therefore, those farmers who want shops there could not get the shops because there are too few shops available for allocation. The hon. Member for Nee Soon has suggested that we set up a unit to help farmers to adapt to the change of livelihood. In fact, the same suggestion has also been made by another hon. Member. On this question of HDB sening up a unit to guide the farmers, let us be very candid about this. Singaporeans in general, and businessmen and farmers in particular, are very adaptable and very enterprising. Those who are affected by resettlement generally adjust themselves very well and can find alternative means of livelihood. We have experienced this for the last 25 years. More than 100,000 resettlement cases have been dealt with by the HDB. Somehow these resettled people have adapted themselves quite well. I personally do not believe that civil servants are able to give the farmers better and more practical advice on what they should do than the farmers themselves. So to set up the unit would be just a waste of effort and money. However, if there is any genuine case of hardship, that is, a farmer who cannot find employment, the hon. Member can write to me and I will direct HDB to look into his case. Those who are willing to work, even if they are in their 40s or early 50s and in good physical condition, if they cannot find a job,I suggest that the hon. Member write to me and I will direct HDB to find them a job, if necessary, There are plenty of jobs available in Singapore. Next is the question of pegging the farm licence to the price of the 3-room flats. In fact, the current cash grant for a farming licence is $19,500. At present, the selling price of an HDB 3-room standard flat is $13,600 and that of a 3-room improved flat is $22,000. So $19,500 is very close to that figure. But I would like to say that they are two different things. The current cash grant of $19,500 paid to the farmers is meant to help them to tide over the initial period of adjustment. This has nothing to do with the selling price of the flats. There is no reason for the cash grant to be pegged to the selling price of the 3-room flats. On the rate of resettlement compensation, this has always been reviewed from time to time. The last revision was in March 1982, when most of the compensation rates for the farm houses, the farm structures, the rental rebates and the cash grant had been increased by 50%. These rates will be further reviewed when there is a need for it. At present I do not think there is a need to review the rates because they have just been reviewed only a short time ago. As we know, in the last two years the inflation rate in Singapore is insignificant. So there is really no valid ground for a review. But in future if there is a ground for review, I will review it. The issue of compensation for fruit trees has been discussed at some length in this House. Prior to 1979, there was a ceiling imposed on the compensation of fruit trees. Since 1979 we have removed the ceiling under the new resettlement policy and the compensation has been paid according to the actual number of trees counted on site. As I have said, our farmers in Singapore are very enterprising. As soon as the ceiling was removed, an enormous number of fruit trees were planted. I was told by the resettlement officers that at times they could not even get into the land because the trees were planted so close to one another. It was impossible to walk through. That is the reason why I say there is no point in having a Civil Servants' Committee because the Committee is just no match for the enterprise of the farmers. At that time it was not possible for the civil servants to foresee that the farmers would cash in on this compensation for the planting of fruit trees. So in 1982 the Government found it necessary to re-impose the ceiling because a large number of the squafters had abused the removal of this ceiling by planting an excessive number of trees on their land. Let me just give Members an example. The normal planting standard allowed for durian trees is about 83 sq metres per tree to enable the durians to bear fruit. This is the advice of PPD experts. After we removed the ceiling, some squaners were planting them at less than five sq metres per tree. This will give you some idea of the abuse. It is not possible for durian trees to bear fruit if they are planted so close together. Therefore, the re-imposition of the ceiling was essential. I disagree with the hon. Member for Nee Soon that because our compensation rate is so low the farmers had to reson to this additional planting. I will just give some statistics on the amount of the compensation we paid to the farmers last year. Percentage Compensations Paid of farmers Below $50,000 25.2 $50,000 - $75,000 32.3 $75,000 - $100,000 24.4 $100,000 - $150,000 14.0 $150,000 - $200,000 2.7 Above $200,000 1.4 The claim that the farmers are getting very little compensation and therefore they have no choice but to plant a lot of trees is not true. But I must admit that farmers are very enterprising because whenever there is any possibility of getting additional compensation, they will try to get more. That is why we were forced to re-introduce the ceiling. 3.30 pm I am quite satisfied with the ceiling of $30,000 per hectare. It is very generous. If anybody thinks this is unreasonable, he can just take a short trip to Johore to find out the prices of orchards there. You can ask them, "In your opinion, how much is one hectare of orchard wonh, and what is the value of the land and the value of the trees?" Our compensation of $30,000 per hectare is for the trees alone, not for the land. For the land, we have to compensate the landowner again. The farmers do not own the land. That $30,000 is paid as compensation for the trees. So if they come back and tell me that in Johore the fruit trees alone without the land, are worth more than $30,000 per hectare, then I will be happy to review the policy. I will tell the HDB, "Our policy is wrong. We will review it again." What I would like to stress is that the Government's reseftlement policy has been enforced since 1960 and it is continually being reviewed and revised. The policy at present is fair and reasonable and has generally worked very well. However there may be exceptional cases which require special consideration. I would be happy to consider these special cases. If hon. Members also feel very strongly about these cases, they can write to me or to my Senior Parliamentary Secretary, and I will ask the HDB to look into them. On the point raised by the Member for Kaki Bukit about resettlement in his area, my answer is very similar to that given to the Member for Nee Soon. Generally the scale of clearance is large and we have to take it in phases. Therefore, some of the resettlement cases can be handled early while others are handied later. It is not possible for us to handle all of them at once because the resettlement workload is enormous. Everyone of us in this House knows that Government has a very big housing programme. The Ministry of Education has a very big school development programme, i.e. the junior college programme. The Public Works Department has a very big road construction programme. The Jurong Town Corporation has a large industrial development programme. Then the Ministry of the Environment has its drainage and irrigation programme. I can go on and on with these programmes involving more than a thousand resealement cases every month which the Reseftlement Department has to handle. It is not possible for the Resettlement Depanment to handle clearance beyond a certain number because they just do not have enough manpower to tackle this problem. The suggestion made by the Member for Kaki Bukit is good - that the Resettlement Department should handle everything. But this is not practical because the Resettlement Department simply does not have enough manpower to handle resefflement cases and also, as suggested by the Member, to demolish the structures to prevent the breeding of mosquitoes, to maintain the cleanliness of these resettled areas and to prevent people from going into the resenied sites. It is just beyond their means. The Resettlement Department just does not have so many people to handle the job. I would like to repeat again that if there are any exceptional cases, special cases, and Members of this House feel very strongly that my Ministry has to pay special attention, I would be very happy to receive those cases.