RENTAL RATES FOR HAWKER STALLS

RENTAL RATES FOR HAWKER STALLS: 4.

Mr Hri Kumar Nair asked the Minister for the Environment and Water Resources how his Ministry determines the market rent for hawker stalls and what accounts for the disparity in market rents between stalls in different locations.

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The Minister for the Environment and Water Resources (Assoc. Prof. Dr Yaacob Ibrahim): Mr Speaker, Sir, the NEA engages a professional valuer to assess the market rent for non-subsidised hawker stalls in markets and hawker centres. Other than the prevailing economic conditions and size of the stall, the valuer will also consider the location of the centre as well as factors such as the accessibility and frontage of the stall within the centre when assessing the market rent for the stalls.

Mr Hri Kumar Nair: Supplementary question, Sir. I often get complaints from hawkers who say that they are paying rents higher than a comparable stall elsewhere. May I ask the Minister whether the rents are publicly available and, if not, would he consider publishing them for greater comparison and outcomes?

Assoc. Prof. Dr Yaacob Ibrahim: Sir, as I have mentioned in my reply, even within centres, there could be different market rents depending on the location of the stall in question. The market rents are not made available at this point in time because they are charged directly to the stallholder. Tender rents are available because when the tender goes out, they put in a bid, and we will decide on which bids to accept. I will consider the Member's proposal as to whether we want to make the rental data available. The point is that there will be variations even within centres and across different centres.

Mdm Cynthia Phua (Aljunied): Mr Speaker, Sir, I would like to ask if the Minister takes into account the subletting rent of the stalls in determining the market rent. And does the Minister know there is a difference between the NEA market rent and the subletting rent? Thirdly, if the Minister is aware that there

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is such a difference, is he aware if this difference is affecting the operating costs of the food stall operator?

Assoc. Prof. Dr Yaacob Ibrahim: Mr Speaker, Sir, I assume the Member is referring to legal subletting. Subletting rental is again subjected to market forces and for the person who is prepared to take the stall to decide. As I mentioned in my reply, for any stall that is to be rented out at market rate, it is given to a valuer to assess for us. He will take all the available information into account. As to whether or not he takes into account the prevailing subletting rentals, this is best left to the professional valuer to decide.

Assoc. Prof. Paulin Tay Straughan (Nominated Member): Supplementary question, Sir. Under what conditions will the Ministry allow for subletting? I think we should not allow an individual to profit. If you rent the stall from the Ministry, then you should run the stall and not use it as leverage for higher profits, through subletting.

Assoc. Prof. Dr Yaacob Ibrahim: Subletting is not allowed for subsidised stalls.

2.47 pm

Mr Speaker: Order. End of Question time. I propose to take the break now. I suspend the sitting and will take the Chair again at 3.30 pm.

Sitting accordingly suspended

at 2.47 pm until 3.30 pm.