VALUATION LIST FOR 1960 (Variation of)

Mr A. P. Rajah asked the Minister for National Development whether, in view of the present position of the law that, in the matter of fixing the annual value of premises in Singapore the rents of which are controlled under the Control of Rent Ordinance (Chapter 242), such annual value must be assessed on the basis of rents permitted under the said Ordinance, he will take appropriate steps to have the Valuation List for 1960 in respect of such premises varied to conform with the law.

Mr Ong Eng Guan: Mr Speaker, Sir, due to the corruption in the City Council in the past ten years, we found in Singapore that assessment of the annual values of properties had not been properly done and not on an equitable basis. The result has been that a considerable number of property owners have benefited over a period of years from the undervaluation of their properties while others less fortunate have had their properties valued correctly.

Due to the correct valuation taken by the City Council since the new Government came into existence, many millions of dollars of revenue which were lost hitherto have been recovered and which can be used for the benefit of the poor classes in erecting more standpipes, providing more electricity, constructing parks and playgrounds, kampong roads and many other amenities.

The revaluation of properties has been done in certain areas which we believe have many vested interests connected with the City Council in the past ten years and there were many areas where many properties were not valued properly. At the same time, in our revaluation of such properties, the Assessment Department also touched on rent-controlled houses in which certain anomalies in the payment of assessment had been created due to rent control. Because of the existence of rent control, there are some people, mostly chief tenants, who are now reaping rich profits from such rent-controlled houses. We think it is high time that the chief tenants of these houses should be made to bear a part of the cost of maintaining the essential services and providing better amenities to the poor. The revaluation for assessment purposes of rent-controlled houses has been done in some States of the Federation of Malaya. During the past few weeks, after the valuation list has been published, we found out that some landlords and chief tenants tried to exploit the situation by threatening to increase the rents of sub-tenants who are mainly the poor people.

Mr Speaker, I am quite aware, as is pointed out in the question tabled by the Member for Farrer Park, that rent-controlled premises are in a special position in that the annual value must be assessed on the basis of the rents permitted to be charged under the Control of Rent Ordinance. The special position of rent-controlled premises is receiving consideration by the Government and an announcement will be made as soon as a decision has been made on the appropriate action to be taken with regard to these premises.

Mr Rajah: Does the Minister then accept the position that the proposed increase in so far as rent-controlled properties are concerned is illegal?

Mr Ong Eng Guan: Mr Speaker, I have said just now that the special position of rent-controlled premises is receiving consideration by the Government and I repeat that an announcement will be made as soon as a decision has been reached on the appropriate action to be taken with regard to these premises.

According to the Local Government Ordinance, the valuation list is published each year before 31st August. In the short time that the P.A.P. Government came into power before the month of August, we had to publish the valuation list. We shall, however, soon consider all the legal matters which arose when we were pressing for the completion of the valuation list.

Mr Rajah: Does the Minister realise that no amendment to the Rent Control Ordinance will now rectify the position insofar as assessments on rent-controlled properties are concerned for the year 1960?

Mr Ong Eng Guan: Mr Speaker, the Ministers have discussed among themselves the full legal position and they are not prepared to reveal what they have in mind now. As I said just now, a statement will be issued in due course.

Mr Speaker: Mr Rajah, Question No. 2.

Mr Rajah: Mr Speaker, Sir, in view of the-

Mr Speaker: Question No. 2.