S.I.T. RENTALS (Reduction)

Mr Lee Choon Eng asked the Minister for Local Government, Lands and Housing what steps the Government have taken to reduce the rentals of S.I.T. houses.

Inche Abdul Hamid Bin Haji Jumat: Mr Speaker, Sir, the question of reduction of rentals of S.I.T. houses is closely connected with the reduction of interest on S.I.T. loans. Government has given its fullest consideration to the matter, and I am happy to state that, subject to the approval of this Assembly, Government has decided that as from the 1st of April this year all interest on loans to the Singapore Improvement Trust will be reduced to two per cent. The Trust will be asked to submit a scheme to indicate the manner in which this saving can be utilised. This will mean a saving of approximately $1,200,000 this year and greater savings thereafter.

Mr Lee Kuan Yew: What would that mean in terms of lowering of rent?

Inche Abdul Hamid Bin Haji Jumat: Mr Speaker, Sir, I have just mentioned that we will ask the Trust to submit a scheme and, subject to our receiving it, I am not in a position to say how this will affect the reduction of rentals of the present Improvement Trust flats.

Mr Lee Choon Eng: If there is such a reduction, would that affect buildings previously built?

Inche Abdul Hamid Bin Haji Jumat: Mr Speaker, Sir, it may well be that part of such savings may go towards the reduction of rentals of the cheapest houses.