REDUCTION OF S.I.T. RENTALS

Mr Lee Choon Eng asked the Minister for Local Government, Lands and Housing when can S.I.T. tenants expect a reduction of rentals as promised by the Minister early last year.

Inche Abdul Hamid Bin Haji Jumat: Mr Speaker, Sir, the hon. Member presumably refers to a statement which I made in this House on 8th February, 1956, when I said that the savings resulting from the reduction of the interest rate on S.I.T. loans to two per cent might well go towards the reduction of rentals of the cheapest houses. It will be seen, Sir, from the White Paper tabled this morning that the Government has closely examined the question of housing subsidies and has decided not to proceed with the proposal to subsidise housing by reducing the rate of interest on loans. The new method of subsidy proposed will make it possible in due course to undertake a comprehensive survey of all Trust rentals with a view to equalisation of rents. It is a long-term policy of Government, Sir, that ultimately the same rent should be paid for the same type of accommodation in all public housing estates. As an interim measure, certain immediate reliefs are proposed to which reference is made in the White Paper and it is hoped, Sir, that these will be effective from the 1st of February this year. I can also say here, Sir, that the measures to be proposed involve Government to the extent of a little over half a million dollars for 1957.