OASIS BUILDING

OASIS BUILDING:

(Outline of plans): 8.

Mr Seah Kian Peng asked the Minister for Community Development, Youth and Sports in light of the delay in the completion of the Sports Hub and the reopening of the National Stadium for use, whether he can outline the plans for the nearby Oasis building which has been hoarded up since it was acquired by the Government.

Dr Vivian Balakrishnan: The Oasis building was acquired by the Government so that a public Water Sports Centre could be incorporated into the Sports Hub project. Prior to the acquisition, it was leased out to commercial food and beverage operators. Reopening the building at this point would require much work and significant cost. As the preparatory ground work may start quickly once an agreement has been reached with the Singapore Sports Hub Consortium, the Singapore Sports Council (SSC) does not have any immediate plans to lease out the Oasis building or use it for any alternative purposes in the interim.

Column: 3639

Mr Seah Kian Peng (Marine Parade): I just want to ask the Minister notwithstanding that the Sports Hub could be activated soon, whether it is possible to make better use of the current premises by letting it out on a temporary basis, and to let the market decide whether tenants are prepared to take up the site based on market rates.

Dr Vivian Balakrishnan: The challenge is that businesses would require some predictability and some certainty that the space would be available in order for them to put in the investment to restart their business plans at that point in time. So from now while the negotiations are ongoing – and frankly, once those are settled, we will begin immediately – it is better not to raise false hopes or to reopen up a place, only to shut it down again at very short notice.

Mr Speaker: Last question, Mr Seah.

Mr Seah Kian Peng: I thank the Minister for the answer. Could the Minister just update us in the case of the Sports Hub, what is the current status with respect to its opening?

Dr Vivian Balakrishnan: I think Members would recall that I previously updated the House that the Consortium which was selected to build the Sports Hub had prepared its business plans at a time when the liquidity was much more abundant. Right now in the midst of the downturn and, in particular, the financial crisis, their plans which were predicated on the availability of significant sums of capital, obviously need to be reworked. We are still waiting for them to return to us with either new conditions or vary certain parameters of the bid in order for us to decide whether we can proceed. These are technical and complicated negotiations that are still ongoing and, hence, I do not want to make any specific commitments now to settle these negotiations by a particular date. I think

Column: 3640

Members will appreciate that putting artificial deadlines will weaken our negotiating position. Nevertheless, it is in all our interest to settle this matter as soon as possible and to commence construction of the Sports Hub.