FIRE INSURANCE FOR STALLHOLDERS

FIRE INSURANCE FOR STALLHOLDERS: 10.

Mr Inderjit Singh asked the Minister for the Environment and Water Resources

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in light of the recent market fire at Ang Mo Kio Street 61 whether the Ministry will consider (i) making fire insurance compulsory for all stallholders who rent stalls from the National Environment Agency; and (ii) building the insurance premium into the rental which stallholders pay for renting their stalls.

The Minister for the Environment and Water Resources (Assoc. Prof. Dr Yaacob Ibrahim): Mr Speaker, Sir, as landlord, HDB and MEWR will reinstate a market or hawker centre, including the stall structures and all fittings provided by the landlord to tenantable condition in the event of a fire. Stallholders, as tenants, therefore, do not have to take up insurance to cover their rental stalls.

On the other hand, stallholders may decide to buy insurance to cover their own personal belongings, business goods or fixtures installed by them at the stalls. As the subject to be insured concerns the personal belongings of the individual stall tenants, it would not be appropriate for the Government to take out such insurance.

In fact, it is best for each stallholder to decide on the extent of insurance coverage he deems sufficient to cover the value of his goods and belongings. Besides fire insurance for his goods and belongings, a stallholder may consider insuring himself against business loss that may arise from a fire incident.

The Government will not make it compulsory for stallholders to buy their own insurance. However, stallholders are encouraged to be prudent and take up the necessary insurance to cover their own goods, fixtures and belongings against fire.

Sir, the centre at Block 628 Ang Mo Kio Avenue 4 will be rebuilt and is expected to be ready by 2009. I would

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like to commend the good work of the Advisors, Mr Seng Han Thong, Mr Wee Siew Kim and Mr Inderjit Singh, the NEA, HDB and the Ang Mo Kio-Yio Chu Kang Town Council in rendering all possible assistance to the affected stallholders at the market and hawker centre. This includes setting up the transitional market within a week of the fire, allocating alternative stalls in other markets and hawker centres, and constructing a temporary market/hawker centre which is expected to be ready by February 2008, so that stallholders can continue to conduct their businesses while the market/hawker centre is being rebuilt.

Mr Inderjit Singh: Sir, I have two supplementary questions and I have vested interests in these because, in the last few years, we have had four market fires in Ang Mo Kio. Each time, we have tried our best to encourage the hawkers to insure. They started off insuring and, then, over the years, they stopped doing it. In this case, about 20% insured. So the question I would like to ask is that, first of all, while they are insured for rebuilding of the new market, they are not insured for building of the temporary market, so the hawkers are going to have to pay for that market. Can the Minister consider insuring at least that portion where we have enough money paid out to build up the temporary market? If the Minister is not willing to consider compulsory insurance, can he maybe consider a scheme where we only renew hawker or market licences if the market stallholders have some basic minimum insurance, just as we do for some other licences that we renew? Perhaps, that may force the hawkers to take up at least basic insurance and then the hardship may be reduced in this manner.

Assoc. Prof. Dr Yaacob Ibrahim: Sir, I think the Member would know that the answer to the second question is no, because we do not renew on the basis of whether or not he has bought insurance.

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We renew on the basis of whether he wants to renew his licence and whether he is a first or second generation hawker. As to the temporary market, the policy has always been for a temporary market to be provided by the hawkers themselves, not by the Government. Even under HUP, we do not provide for the temporary market. But in this particular instance, I think NEA has been working very closely with the HDB and the Town Councils to see where we can provide and assist the hawkers in providing the temporary market.

Mr Speaker: Mr Sin, last question.

Mr Sin Boon Ann (Tampines): Sir, would the Minister be so kind as to enlighten us why the Ministry is not prepared to provide the funds for the temporary market?

Assoc. Prof. Dr Yaacob Ibrahim: Sir, under the HUP, our responsibility is to build and upgrade the existing market. Between the period of the centre being closed and the new centre being built, it is up to the hawkers to decide. This arrangement has been going on for the last few years and most of the hawker centres and markets are able to fend for themselves in providing for temporary centres. In fact, they have done so without any loss of business. So we have done the analysis and we think it is adequate as far as the current arrangements are concerned.