LOAN BY GOVERNMENT TO THE SINGAPORE IMPROVEMENT TRUST

Debate resumed.

2.33 p.m.

Mr Lee Kuan Yew: During the luncheon adjournment, Sir, I had the advantage of being enlightened on the Government housing subsidy plans. According to the White Paper as explained by the Minister for Local Government, Lands and Housing, the plan is to fix rentals below the economic rent and the deficit will be made up by a vote in this Assembly annually. Hence that vote will represent the annual subsidy for housing.

Sir, on principle, there is nothing wrong with that plan. I am told also that from the accounting point of view, everything will be clearly disclosed and not concealed. But I think Ministers on the other side must also be aware that this means an annual debate. This means, in effect, the possibility of subsidies going up or down depending upon the play of local political forces year by year, perhaps even month by month. I would ask them seriously to consider some method by which once a subsidy rate has been fixed, it stays there until there is, as a result of major policy changes in the Government, a need to revise the whole subsidy rate, otherwise like the old Emergency Regulations, we will have it up every year. I do not think this is to the advantage of those who reside in houses subsidised by the Government. It appears to me on principle to be not altogether a satisfactory method of subsidising housing.

2.35 p.m.

The Minister for Commerce and Industry (Mr J. M. Jumabhoy): Mr Speaker, Sir, the possibility of the matter of subsidy becoming a subject of political bargaining was foreseen. It was thought that we should act like grown-up men. The Government in power should take the responsibility of acting like men and not pander to the whims and fancies of the electorate if it thinks that the electorate is wrong. If the electorate is right, by all means, yes, but not if it thinks that the electorate is wrong. There is also the possibility that there may be certain irresponsible elements in the Opposition at any time in any year who might try to play up to popular sentiment and feeling by advocating a very low rental and a higher rate of subsidy but it is up to the men who feel that they are responsible to stick to their guns. If the time comes when our elected Government does not behave like grown-up men capable of undertaking responsibility, I would feel sorry for Singapore.

2.36 p.m.

Mr Hart rose-

Mr Speaker: In reply?

Mr Hart: In reply, Sir. I have very little to say in reply. The subsidy policy outlined in the White Paper has been evolved after a great deal of thought. We do not claim that it is perfect. It is possible that there may be better methods of subsidising housing in Singapore. If the Member for Tanjong Pagar can think of any of them, I shall be delighted to have the details. Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Assembly approves of the loan by the Government to the Singapore Improvement Trust of the sum of $44,737,000 at an interest rate of 5¼ per cent per annum repayable over a period of 60 years, the repayments to be made by half yearly instalments based on the annuity method and together with repayments of previous loans to be secured by a legal mortgage of all the immovable properties belonging to and to which the Trust holds legal title and by an equitable charge of all the immovable properties belonging to and to which the Trust holds equitable title for the purposes of enabling the Trust to meet the cost of constructing buildings required for carrying out the purposes of the Singapore Improvement Ordinance.