HOUSING AND DEVELOPMENT (AMENDMENT) BILL

Order for Second Reading read.

2.37 p.m.

The Minister for National Development (Mr Lim Kim San): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill is to fulfil Government's promise to provide opportunities for the middle and lower income group to own homes. The Housing and Development Board's five-year programme calls for the completion of 51,000 housing units by mid 1965. I am sure Members of this House will be glad to hear that we will have the 51,000 units of public housing by that date. The progress of our housing programme, according to schedule, has enabled the Government to give accommodation to the majority of applicants who urgently need houses. We have reached the stage where we can offer accommodation to any citizen of Singapore who is eligible to a house if he is not too choosey. However, there are quite a number of people with low income who want to, and should be encouraged to, own their homes too. Unfortunately the flats and houses built by private developers are priced beyond their means. We have therefore now started a scheme whereby two- and three-room flats are sold on instalment at the subsidized prices of $4,900 and $6,200 respectively. At these prices our citizens can choose between buying a car or a house.

The plan for the sale of low-cost flats was announced in February this year, and the Housing and Development Board, as agent of the Government, prepared a pilot scheme for the sale of 2,068 two- and three-room flats. The response so far has been most encouraging. Up to date about 800 flats have been balloted for. Enough publicity has been given to the scheme and I do not propose to go into details. In putting up this scheme it is our intention to see that no abuse arises out of it. Therefore, certain conditions and regulations have to be made pertaining to the sale of these flats. There are enough provisions in this Bill to prevent these flats which are sold on instalments from falling into the hands of speculators and profiteers. The flats are to be sold only to bona fide purchasers who wish to buy a house for their own occupation. There are also provisions in this Bill to ensure that the flats can be managed properly and economically after they have been sold. Under this Bill, a person is not entitled to purchase more than one flat, and if he does so, he contravenes the Ordinance, and on conviction will be liable to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $2,000, or to both fine and imprisonment. Any flat purchased in contravention of the Ordinance will not be registrable. But, on the other hand, provision is made in the Bill to exempt all bona fide transactions from the legal requirements of the Registration of Deeds Ordinance and the Land Titles Ordinance, as regards the registration of sale, mortgage, and re-mortgage.

There is a restriction on transfers which could only be effected with the consent of the Housing and Development Board, and where the Board refuses such consent, it is bound to buy it up at a price to be determined by the Board. This price is, however, subject to appeal to the Minister, should the owner be dissatisfied with the price offered.

Powers are given to the Board to require the owners of flats to form a management corporation for the purposes of general maintenance of the common property, and where a direction by the Board to this end is not complied with, the Board may authorise any company to undertake the control, management and administration of the property. The Board may, however, exercise these functions where there is no management corporation or where such corporation has been wound up on the order of the Minister. The corporation would subsist by levying con tributions from the owners of the flats in the block.

Powers are given in the Bill to enable the Housing and Development Board to determine the lease under various circumstances, such as non-payment of instalments, securing purchase of a flat on false pretext or the owner has violated the rules for the sale of flats. In order to regulate the sale of flats, the Board will be empowered to make rules for purposes such as methods of sale, qualifications of persons eligible, monthly instalments, period of payments, and so on.

The opportunity is also taken in this Bill to make other amendments to the Housing and Development Ordinance which are considered necessary in the light of experience of the working of the Board since it was formed in February 1960. The repeal and re-enactment of section 12 will enlarge the scope of the Board's functions and enable it to build accommodation for sale and lease as well as for renting, and will also enable it to undertake urban development and to provide loans to enable persons to purchase houses. The Board will also be empowered to promote and float incorporated companies to carry out any of the functions laid down under the Ordinance.

By an amendment to section 24, the procedure for the internal administration of the Board will be simplified by vesting it with powers to make standing orders in regard to the methods of making contracts, the delegation of powers to officers of the Board, the keeping of accounts, conduct and discipline of officers, loans and allowance to officers, and so on.

The procedure for the borrowing of monies from Government will also be simplified by clause 9, which repeals sections 37 and 38 of the Ordinance, and re-enacts section 37. Under the new provision, funds required by the Board for carrying out its functions will be subject to less cumbersome and formal procedures.

The first balloting of the sale of flats took place early in February this year, and it is necessary to bring this Bill into force with retrospective effect from the 11th February, 1964, in order to validate the action of the Board in selling flats to the public.

Sir, I beg to move.

Question proposed.

2.47 p.m.

Mr Lim Huan Boon (Bukit Merah): (In Mandarin): Mr Speaker, Sir, I would like to comment on this Bill from my personal understanding and experience. I would like the Minister to explain the points I will ask.

According to clause 4 (new section 12A), when authorized by the Minister, the Board can form a private corporation and can carry out urban and rural development. A green or agricultural belt was formerly not allowed for housing development and prices were low. But according to clause 4 (new section l2A), if the Minister approves of it, such lands can be developed and the landlord will have to pay a certain amount of development charges. The Bill has the purpose of preventing the landlord from exploiting the benefits derived from development. I wonder whether the Government has taken any measures to control land prices. I hope that the Housing Board, before any scheme is carried out, will look into the question of prices for the land and should arrive at a just determination, otherwise land prices will increase, and as a result, the burden of the people will be increased.

According to clause 7 of the amendment Bill, the Board approved by the Minister can make standing orders to provide for certain matters. There is a provision that the Board can give facilities and conveniences to its staff. Maybe one reason is that they are looking after the welfare and housing problem of the public, so that they are given such facilities and conveniences. I wonder whether the staff in other Government departments are also given such facilities and conveniences as provided here. I would like the Minister to give a reply.

2.52 p.m.

Mr Lim Kim San: Mr Speaker, Sir, the House has just passed the Planning (Amendment) Bill. Under that Bill whatever rise there is in land prices due to development, part of that increase in value will go back to Government in development charges.

With regard to the fear of the hon. Member that landlords - I hope I get him right - will benefit unduly by the rise of prices in land because of our development, I can assure him that we will see to it, with every means at our disposal, that there will be no speculation in land. I did mention in my speech in moving the Second Reading of the Planning (Amendment) Bifi that we were quite aware that where planning permission has been given, there are a number of people who having received this permission have hawked it around without any intention of building. Therefore, in the Planning (Amendment) Bill, we have fixed a date - I think it is within two years - within which if no building operation is commenced, the permission lapses.

With regard to his other point - he was referring to clause 7:

'24.-(1) The Board may, with the approval of the Minister, make rules prescribing anything that is to be prescribed and generally for carrying out the provisions of this Ordinance.'

His contention is, why should special facilities be given to officers of the Board to enable them to carry out their duties; whereas officers in other departments do not get the same facilities? I would say this ruling here is - as a result of our previous experience - to cut away as much red tape as possible, to see that what could be done for the public should be done with as little waste of time and with as little red tape as possible.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill.

Bill considered in Committee.

2.55 p.m.

[Mr Speaker in the Chair]

Clause 1 ordered to stand part of the Bill.

Clause 2 -

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

In page 2, line 9, after "the", to insert "developed".

Amendment agreed to.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

In page 2, line 20, to leave out "section" and insert "subsection".

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clauses 3 to 7 inclusive ordered to stand part of the Bill.

3.00 p.m.

Clause 8 -

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

In page 6, to leave out lines 5 to 21 inclusive and insert ---

The Chairman: The Minister does not have to read out the amendment if he is satisfied with the amendment as set out in the Order Paper.

Mr Lim Kim San: Yes, Mr Speaker, Sir, I beg to move the amendment* as set out in the Order Paper.

The amendments read as follows: -

• (l) In page 6, to leave out lines 5 to 21 inclusive and insert - " "(2) Where a person purchases a flat, house or other living accommodation in contravention of the provisions of subsection (1) of this section, such person shall not present for registration under the provisions of the Cap 255 Registration of Deeds Ordinance or the Land Titles Ordinance, 1956, the Ord 21 assurance of such flat, house or other living accommodation. The Board of 1956 shall, within three months of the date of the discovery of such purchase, serve a written notice upon the purchaser of such flat, house or other living accommodation of its intention to lodge with the Registrar of Deeds or the Registrar of Titles, as the case may be, an instrument under the provisions of subsection (3) of this section. Such purchaser may, within fourteen days of the service of such notice, appeal to the Minister whose decision thereon shall be final and shall not be called into question in any Court.".

Amendment agreed to.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move the amendment (2)+ as set out in the notice of amendment.

• (2) In page 6, to leave out line 32 to line 4 in page 7 and insert -

"(4) The Registrar of Deeds or the Registrar of Titles shall -

(a) not be concerned to inquire into the regularity or validity of any instrument, lodged under the provisions of subsection (3) of this section; and

(b) register such instrument and upon such registration the title to or the estate or interest in such flat, house or other living accommodation shall vest in the Board without further assurance free from all incumbrances (save such subsisting covenants, conditions or restrictions, if any, as may be binding on the Board) for such title, estate or interest as the Board would have had on the date of the registration of such instrument, if there had been no sale of such flat, house or other living accommodation.".

Amendment agreed to.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move amendment (3),

In page 7, to leave out lines 5 to 37 inclusive and insert the words* as set out in the notice of amendment.

The amendments read as follows: - * (3) In page 7, to leave out lines 5 to 37 inclusive and insert - "(5) Upon the registration of such an instrument - (a) in the case of a flat, house or other living accommodation, registered under the provisions of the Registration of Deeds Ordinance, the Registrar of, Deeds shall make an entry in the books of the Registry that such flat. house or other living accommodation has vested in the Board in accordance with the provisions of subsection (4) of this section, and upon such entry being made, such flat, house, or other living accommodation shall vest in the Board free from all incumbrances, subject to such subsisting covenants, conditions or restrictions, if any, as may be binding on the Board; or (b) in the case of a flat, house or other living accommodation, registered under the provisions of the Land Titles Ordinance, 1956, such flat, house or other living accommodation shall vest in the Board free from all incumbrances, subject to such subsisting covenants, conditions or restrictions, if any, as may be binding on the Board, and the Registrar of Titles shall cancel the registration of any mortgage, charge, or lease thereby overreached.".

Amendment agreed to.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move,

In page 10, to leave out lines 1 to 8 inclusive and insert the words+ as set out in the notice of amendment.

• (4) In page 10, to leave out lines 1 to 8 inclusive and insert - "Establishment 36G.-(1) The owners of flats in any building of the of a Board shall, as soon as possible after they are corporation. directed by the Board in writing, establish a body corporate under the name of "The Management Corporation for flat numbers . . . of the Housing and Development Board building situate in Lot number . . . in Town Sub-Division or Mukim . . .".".

Amendment agreed to.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move, In page 14, to leave out lines 8 to 15 inclusive.

Mr Speaker, this amendment has been suggested by the Registrar of Titles and Deeds and is considered to be essential from an administrative point of view. I am advised that the amendment sug gested is sound and may be accepted as it will enable the Registrar to carry out the provisions contained in the amending Bill.

Amendment agreed to.

The Chairman: The attention of Members is drawn to the note on the Order Paper, which reads:

In page 13, line 13, to leave out " -- (1)" consequent on the deletion of sub-clause (2).

Clause 8, as amended, ordered to stand part of the Bill.

Clause 9 ordered to stand part of the Bill. New Clause - "Amendment Section 30 of the principal Ordinance is hereby of section 30. amended by deleting subsection (2) thereof and substituting therefor the following:- "(2) Subject to the provisions of this section - (a) appointments and promotions of all employees shall be made by the Board; and (b) determination of an appointment, dismissal and disciplinary control of the employees of the Board shall be vested in the Board. (3) The Minister may, with the consent of the Public Service Commission, declare by notification in the Gazette that the appointment or appointments and promotion or promotions of an officer or class of officers as he deems fit, and determination of an appointment, dismissal and disciplinary control of persons appointed as such officers, shall be vested in the Board acting on the advice of the Public Service Commission, and upon such declaration, the Board shall exercise such functions on the advice of the Public Service Commission. (4) Notwithstanding the provisions of this section, the Chief Executive Officer may appointpersons temporarily for a period not exceeding two months. (5) The Board shall, with the approval of the Minister, prescribe the rates of remuneration payable to persons employed by the Board, and no persons so employed shall be paid otherwise than in accordance with such rates.".- [Mr Lim Kim San].

Brought up, and read the First time.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move, "That the clause be read a Second time."

Mr Speaker, Sir, the purpose of this new clause is to make provision in the Ordinance to regulate the appointments and promotions and determination of appointments, dismissal and disciplinary control of officers of the Board. Under this new clause the Minister may declare that the appointment, dismissal and disciplinary control of certain classes of officers can only be carried out by the Board acting on the advice of the Public Service Commission. The rates of remuneration payable to persons employed by the Board will also be subject to the approval of the Minister. The provisions of this new clause will bring the Housing and Development Board into line with the practice of other statutory bodies like the Public Utilities Board and the Port of Singapore Authority.

Question put, and agreed to.

Clause read a Second time and added to the Bill.

Bill reported with amendments; read a Third time and passed.