HAWKER STALLS UNDER TENDER SCHEME

HAWKER STALLS UNDER TENDER SCHEME: 13.

Mdm Cynthia Phua asked the Minister for the Environment and Water Resources (a) for the past five years, what is (i) the number of hawker stalls let out under the Tender Scheme and Walk-in Scheme; (ii) the average percentage above the reserve price that were bidded for stalls under the Tender Scheme; and (iii) the number of tenancy assignments; (b) whether his Ministry keeps track of the assignment fee paid for such stalls; (c) what is the number of vacant hawker stalls, average period of vacancy and reasons for the vacancies; (d) whether some vacant stalls in each market can be set aside for deserving hardship cases at subsidised rental.

The Minister for the Environment and Water Resources (Assoc. Prof. Dr Yaacob Ibrahim): Mr Speaker, Sir, over the past five years, NEA let out an average of 250 stalls through the Tender Scheme and 130 stalls through the Walk-in Scheme every year. The successful bid prices for market and cooked food stalls are about 32% and 56% above their reserve prices, respectively.

Stallholders may assign their stalls to another party. On average, there are about 360 stall assignments a year. However, NEA does not keep track of the assignment fees as these are private transactions.

There are currently 228 vacant stalls in the markets and hawker centres managed by the NEA. The stalls typically fall vacant when the stallholders decide to exit from the trade or when it is no longer financially viable for them to carry on operating, for instance, due to competition or decline in patronage. The duration in which these stalls remain vacant varies according to their demand.

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Sir, the practice of allocating vacant stalls at subsidised rent to hardship cases was discontinued in 1990. It was observed that many of those who applied for these stalls did not appear to be in urgent need of assistance. Moreover, Sir, there are currently several job and financial assistance schemes administered by the five CDCs for hardship cases, and these schemes, Sir, are less risky than the hawking trade. NEA therefore has no plans to reinstate this practice.

Mdm Cynthia Phua (Aljunied): Thank you, Mr Speaker. I have two supplementary questions. Currently, the high assignment cost from one tenant to a new tenant is very high. In view of that, I am wondering if NEA could keep a tab as well as a cap on this. Just like the HDB, they have imposed the resale levy. He may want to consider an assignment levy so that the cost of it will not be borne by the consumer.

Mr Speaker: Just ask your question, Mdm Phua.

* *Mdm Cynthia Phua: I just want the Minister to consider keeping tab on the assignment cost of these Tender Scheme stalls.

Question two. The Tender Scheme pricing is at least 50% higher than the walk-in Scheme. This means the entry level for those who need the stalls is very high. I would urge Minister to consider setting aside 10% to 20% of the stalls for low-income families and some of the elderly residents who do not have the skill set and are unable to upskill their skill set.

Assoc. Prof. Dr Yaacob Ibrahim: Sir, the answers to both questions asked by the Member are in my first answer. The assignment process is a private transaction between two interested parties. As to whether we can keep a tab, if you mean

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monitoring the numbers, we can do that. But in terms of the assignment fee, it is going to be very difficult to track, because of our inability to verify if the assigned value is true or not. So it is very difficult for us to do the verification, because it is a private transaction. But her point about the fact that the fee is very high, I think is worth noting, and I hope the public will also understand that this is a private arrangement. Therefore, they have to go in with their eyes open to see whether they can afford it or not. But it will not be passed on, because the person who takes the assigned stall will be charged market rent and he knows what the market rent is. The market rent is irrespective of the assignment fee.

On her second point, the better alternative for those who are really in need of a job or any form of assistance is to go to the CDCs or find other forms of assistance. The hawking trade is very risky. If you do not have the skills set to cook and your food is not that great, you may not be able to get the patronage. If you go to the market stalls, you need to have the ability to garner supplies for the things that you are trading in. So there are a lot of hurdles for them in order to enter the trade. But if they were to go to the CDCs, they have a lot of opportunities for training or even alternative employment, and that is a lot more stable. So for those reasons, we decided that it is not best for us to continue with this practice.