AGRICULTURAL LEASES BILL

Order for Second Reading read.

3.25 p.m.

The Prime Minister (Mr Lee Kuan Yew): Mr Speaker, Sir, I have His Excellency the Yang di-Pertuan Negara's recommendation to proceed with the Bill.

I beg to move, "That the Bill be now read a Second time."

This Bill has been drafted in pursuance of the People's Action Party's programme on Rural Development as outlined in "The Tasks Ahead", Part 2, page 33. Therein we stated:

`We shall take the requisite powers to grant long term leases to squatter farmers on lands which they now occupy and on farming lands which are either uncultivated or which are being cultivated on a mere maintenance basis with a view to future speculation. Under these arrangements rents due on such leases which farmers can afford will be paid to the owners and it shall be made a condition that no such lands may be alienated to persons other than farmers.

The position of all agricultural lands at present in the occupation of squatter farmers which have been zoned in the Master Plan as sites for satellite towns or potential industrial estates will be reviewed and the fullest consideration will be given to the representation of the members of the farming community before any decisions are made as to the future use to which such lands shall be put.'

Sir, this Bill recognises the position of farmers in our society and aims at giving them a greater security of tenure, and helping them to make the best use of our available agricultural land. By providing these necessary preconditions of certainty and stability, a more intensive and scientific cultivation of agricultural land will result.

This Bill creates statutory rights of an exceptional character and directly interferes with the ordinary rights of private ownership of property by giving special treatment to farmers. However, such inroads into the original concept of the sanctity of private ownership of property are inevitable in our society. The State has to reconcile - in this particular case - the competing needs of different sections of the community between farmers and landowners, and between the competing demands for growing foodstuffs, or for industrial, housing and other purposes in the uses of land. It is our intention to refer both this Bill and the complementary Control of Rent (Amendment No. 3) Bill to a Select Committee for careful study, and to enable the people, particularly landlords and farmers who are affected, an opportunity to make representations on them.

With land to meet our requirements strictly limited, it is essential that all available land be put to the most economic use. The Master Plan has set aside approximately 18.5 per cent of the total area of the Island for agricultural purposes. A total area of approximately 38.8 square miles out of a total of 209.5 square miles (not counting the areas subject to tidal waters) is zoned off as "agricultural" in the Master Plan. The 1958 Revised Land Use Survey showed that out of this area of 38.8 square miles, approximately only half (about 19.4 square miles) was being used for agriculture. It is clear therefore that not all the lands set aside for agriculture have been put to full and intensive use. Encouragement and assistance by way of granting security of tenure as well as by active assistance by the Primary Production Department in technical and scientific advice can improve the position of our farmers and increase the supply of pigs, poultry and vegetables for the people as a whole.

These two Bills, the Control of Rent (Amendment No. 3) Bill, which I shall be moving after this Bill, together with this one, will provide a positive protection for farmers which was lacking hitherto.

In a way, Mr Speaker, Sir, the Agricultural Leases Bill is a logical follow-up to the intentions of the Master Plan, as it seeks to provide the farmers within the agricultural zone the necessary security of tenure to encourage efficient farming. Farmers will now be eligible for leases up to 12 years and can go ahead and plan for farming improvements, secure in the knowledge that they have complete security for the period of the leases, provided they fulfil their normal obligations as lessees. The landlord, on the other hand, will be able to obtain an economic rent subject to a maximum over the present rents for the lease which he will be required to grant to the farmers.

This Bill will benefit farmers primarily within the areas zoned as "agricultural" in the Master Plan. However, the definition of "agricultural land" is being widened to include "lands designated by the Minister by notification in the Gazette as agricultural land". It will thereby be possible to extend the benefits of long leases to farmers in those areas of good agricultural land which are not at present zoned as "agricultural" in the Master Plan for there are pockets of good agricultural land, for example, in the Potong Pasir and the Braddell Road farms at present zoned as "green belt" areas in the Master Plan. We are prepared to consider designating such lands as "agricultural" for the purposes of this Ordinance.

By the definitions of "farmers" and "tenancy", the benefits of leases will also be extended to bona fide farmers who have been occupying and using agricultural land for a period of not less than four years immediately preceding the coming into operation of the Bill, provided such farmer has tendered to the landlord rent in respect of the land, whether or not such tender has been accepted by the landlord. This is a departure from the normal theory of freedom of contract and the House will appreciate that it is a necessary departure aimed at achieving certain economic objectives.

Clause 3 of the Bill provides for a lease of not more than 12 years to be granted to the tenant farmer at his request at an economic rent to be agreed between the tenant and the landlord. The lease would make provision for all the matters set out in the Schedule to the Bill. If no agreement can be reached between the landlord and the tenant on the terms of the lease, the tenant may refer the matter for arbitration under the Bill. Sir, we have put the figure at 12 years. It may well be, after hearing representations from all parties concerned in the Select Committee, that the number of years may be increased to 15, or even slightly more. But we have to weigh the competing interests between the present and future user. If, for instance, we were to tie up the land to a hypothetical 30 years of agricultural use and a lease is granted, it may well be that long before the 30 years, the development of industry in the island would have so progressed as to make it uneconomic for the land to be allowed to be used as a poultry farm. Therefore, we have to weigh the balance between, on the one hand, the present certainty for as long as it can conceivably be planned and, on the other hand, without necessarily tying up the future to a point where we may have cause to regret our having mortgaged the future so far in advance.

Sir, clause 4 provides for a restriction on letting or leasing of agricultural land to any person for other than agricultural purposes without the express written permission of the Commissioner of Lands. This is an important limitation. Also, in further pursuance of the objectives of the Master Plan, it achieves two targets. First, a farmer can only transfer the lease to another farmer. Second, a landlord who has land in an agricultural zone and who is paying assessment on it has two alternatives: either to develop the land as an agricultural piece of land for farming within the definition of the Bill, or to let it out for farming.

Provision is made in clause 7 for a Panel of Arbitrators from which an Arbitrator would be nominated to deal with a particular case. It is envisaged that the Arbitrator will be assisted by officials from a section to be set up in the Land Office to administer the two Ordinances. The Arbitrator will, after hearing both parties, decide on the terms of the lease.

Mr Speaker, Sir, I did mention during the Second Reading of the Control of Rent (Amendment No. 2) Bill that the original intention of putting it before the Rent Conciliation Board was then being considered and it was thought unwieldy because it would, in the initial phase, completely inundate the Rent Conciliation Board as it had not the machinery that would be adequate to deal with and adjudicate between parties in this sort of cases.

Clauses 9 and 10 of the Bill provide an informal procedure for arbitration under the Bill. Clause 11 provides for rules to be made to carry out the purposes of the Bill.

Clause 12 expressly provides that the Bill shall not apply to the Crown and safeguards the rights and powers of the State under the Land Acquisition Ordinance. This is a necessary proviso because. even in the agricultural zone, land shall be required for schools, clinics, parks, installation of electricity units, community centres, and so on. It also provides that the provisions of Parts III and IIIA of the Control of Rent Ordinance will apply to agricultural land comprised in any lease executed under the provisions of this Bill.

Sir, I beg to move.

Question proposed.

3.38 p.m.

Mr Tee Kim Leng (Pasir Panjang): (In Mandarin): Mr Speaker, Sir, when the government machinery of a country is in the hands of those who protect capitalism, they always think of ways and means to pass legislation beneficial to the rich. When they are affected by the tide of anti-exploitation revolution started by the progressive countries, they will pretentiously pass legislation for the so-called protection of labour and welfare in which there are many defects. This is just to bluff the people in another form. They never put the legislation into practice, but they just bluff the people. In the past, although the various strata of our people were under the protection of some legislation, only the farmers had no protection. Therefore, the farmers were doubly oppressed and were left to prosper or die by themselves. Often in the past, they were oppressed by the immoral landlords on the pretext that they wanted to beautify this city. Our existing legislation was passed in days gone by. Therefore, the Judges usually granted the applications of landlords for the possession of land, thus affecting the farmers. But since the P.A.P. Government took office, we have passed temporary legislation to protect the interest of the farmers. At the moment, there are still some unscrupulous landlords who want to make use of the loopholes in the law to intimidate the farmers and to destroy their agricultural land and houses. Therefore, I must warn those unscrupulous landlords that if they still want to make use of mean tactics to disturb the peace of our country, our Government will take legal measures to deal with them.

Mr Speaker, Sir, our agriculture here is quite developed when compared with that of other areas in South-East Asia. Our agricultural products are being sold to the Federation of Malaya and other places. Therefore, the farmers have a place in the economic position of our society. Before it took office, the P.A.P. laid great stress on agriculture and they made promises in this respect to pass legislation to protect the farmers in order that they can live in security and peace to develop their agriculture to the best of their ability. Therefore, after this Bill was read the First time, all the rural people and organisations have expressed their support for it. They welcome this Bill because it specifically provides for their protection and tenure of lease so that they feel that they can have security in earning their livelihood through agriculture.

The land available for agriculture in Singapore is limited, apart from the agricultural lands designated in the Singapore Master Plan. Some people might misunderstand the provisions of this Bill. They might think that whenever there is a dispute, the law will provide for some unfavourable measures detrimental to their interest. This depends on what the Government attitude is. If the Government is for the interest of the capitalists, then, of course, the farmers will be affected. The Bills passed by the previous Government on labour and so on, did not have any practical effect. But the P.A.P. Government represent the people and we are working in their interest. Therefore, the Agricultural Leases Bill is a manifestation of our policy and this Bill can be said to be for the good of the farmers, to protect them and to give hem security of tenure.

Sir, I strongly support this Bill.

3.45 p.m.

Mr Ong Chang Sam (Choa Chu Kang): (In Mandarin): Mr Speaker, Sir, this House feel it an honour to discuss today the Agricultural Leases Bill. The people of Singapore can now see that the P.A.P. Government is fulfilling its election promises. I believe that hon. Members here and all the people outside the House will strongly support this Bill and will feel glad about it.

Past legislation detrimental to the people has been and will be swept out by new legislation. This achievement must be attributed to the people's Government because the people have entrusted this duty to the P.A.P. Government, and the Government have peacefully carried out their task.

Mr Speaker, Sir, just now the Prime Minister mentioned what the P.A.P. promised the people during the elections. Under the Master Plan, in regard to those areas where farmers live which are not designated under the Master Plan, the Government will take proper steps to declare those areas as agricultural lands so as to enable the farmers living there to have the protection of the law. We fully understand that up to now the arable lands which are available for agriculture are limited. The Government have the duty to take care of those valuable lands and put them to better use. Those lands classified as good for the interests of the country and for specific uses will not be declared agricultural lands, unless construction thereon is beneficial to the people as a whole, such as building hospitals schools, markets, and so on. Otherwise, these lands will not be acquired to the detriment of the farmers. Some people may think that the word "agriculture" means only vegetable-growing. It is clearly provided in the Bill that the word "agriculture" includes horticulture, floriculture, rubber, coconut and fruit planting, dairy farming, livestock and poultry breeding and rearing, market and nursery gardening, the use of land as fish-ponds and prawn-ponds, and the use of land for other purposes of agriculture. The Bill will protect the present users of agricultural land. This is very important. Without these strict provisions, this Bill will lose its original intent and purpose.

Mr Speaker, Sir, there are many industries useful to farmers. They were taken to task by some landlords in past legislation. For instance, after the farmers had cultivated the land for a time, the landlord would make use of the old law to drive them out. Some farmers had just started their agricultural work and some landlords thought that they had some bad habits and they tried to drive them out and rob them of their cultivated land for their own use. Therefore, in the past the people were in fear when they carried out their agricultural work because the landlords wanted to take back their land unreasonably. The present Bill will rectify the defects in the old law and try to protect the farmers in this respect. Our Prime Minister has just now clearly explained certain aspects of the Bill.

The Government recognise that statutory tenure of lease is very important to enable the people to carry out their agricultural plans without fear. Clause 3 of the Bill provides that the period of lease for agricultural land will be up to a maximum of 12 years. At the same time, both the landlord and the tenants will agree on an economic rent. If both sides could not agree to that, then the tenant can ask that the issue be put up to an arbitrator to consider. The Bill also provides:

`(a) two hundred per centum of the annual rent thereof paid during the year 1960, in respect of the first five years;

(b) fifty per centum of the annual rent thereof paid during the first five years, in respect of the second five years; and

(c) fifty per centum of the annual rent thereof paid during the second five years, in respect of the remaining two years.'

These are the rentals provided in the Bill. For instance, if a farmer in 1960 pays a rental of $24, then when the Bill comes into effect, the rental for the first five years should not be over $48, and during the second five years, the rent should not exceed $72, and for the last two years, it should not exceed $108.

Mr Speaker, Sir, we think that the maximum of the rent payable is necessary. Without this provision, the landlords will increase the rent and the tenants will not be able to bear this. As to the rent to be paid by the tenant, it is to be that agreed between him and the landlord at an economic rate. The arbitrator will also take into consideration the relevant facts to consider the proper rent to be fixed. We believe that through negotiations, the result achieved will be beneficial to both sides. The Government believes that both sides can co-operate and understand the purpose of Government's intention.

Mr Speaker, Sir, I hope that clause 3 (4) of this Bill will not be made use of in future. But if some landlords despise the meaning of the provisions of the Bill, then the Government will have no alternative but to use this provision to deal with them.

Mr Speaker, Sir, the P.A.P. Government fully understands that in order to improve the livelihood of the farmers, the matter does not depend only on one side. It does not depend on this Agricultural Leases Bill alone. It must also depend on other bases which will help to bring about improvements, namely, the Primary Production Division and others. They have to pay careful attention to these problems. We believe that Government will take immediate necessary steps to protect the livelihood of the farmers. Mr Speaker, Sir, I support this Bill.

Question put, and agreed to.

Bill accordingly read a Second time.

Committed to a Select Committee consisting of Mr Speaker as Chairman and seven other Members to be nominated by the Committee of Selection. -[The Prime Minister].