URBAN RENEWAL SCHEME (Progress of projects)

Mr Lim Soo Peng asked the Minister for Law and National Development what progress has been made in each of the fourteen projects under the Urban Renewal Scheme.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker, Sir, in keeping with Government's policy of encouraging private participation in urban renewal, 14 sites with designated projects were offered to the public from the 15th June this year. Tenders for the leases of these sites closed on the 16th October this year. The tenders received were processed by a Tenders Sub-Committee comprising officials concerned with the technical and financial aspects of these projects. The Sub-Committee's recommendations were considered by a Ministerial committee of three who decided to accept seven tenders, particulars of which are set out in a table* (* Appendix, cols. 401-2.) which I propose, with your permission, Sir, to distribute to Members of the House.

[Copies of the table handed in to the Clerk] APPENDIX TO ORAL ANSWER TO QUESTION NO.9 (Cols. 372-4) (Cols 0401-0402)

Mr Speaker: Order. Mr Barker, do you anticipate any supplementaries on this?

Mr Barker: I have not finished, Sir, but I will be referring to this table shortly.

Mr Speaker: In that case, I will ask the Clerk to hand copies of the table to Members.

[Copies of the table distributed to hon. Members.]

Mr Barker: Members will see from the table which has been circulated that the total land premium offered is in the region of $8,728,000. The expected total investment in these seven projects will be in the region of $31½million, and the projected employment of persons, when these projects are completed, is expected to be in the region of 3,650 persons.

Mr Speaker, Sir, our first exercise to promote private participation in urban renewal has met with an encouraging response and success. More important, the results have shown that investors have confidence and faith in the stability of the economy of our island Republic.

Mr Lim Soo Peng (Havelock): What does the Minister intend to do with the remaining seven projects?

Mr Barker: Sir, some of these projects, for example, the three projects along the Golden Mile, attracted no tenders. We think the main reason is that these projects require capital in the region of $10 million to $15 million. Our plans for some of these projects are to get a group of - if I may call them - small investors together so that they can combine and perhaps take up some of these projects.

I would add that the Government itself would be happy to share and take part with any group of investors who may be prepared to group together to undertake these projects.

Mr Lim Cheng Lock (River Valley): Can the Minister inform the House how many tenders were received for all the projects, and how many tenders were received for each project?

Mr Barker: In all, there were 14 sites which attracted 14 tenders altogether. The 14 tenders were only for 8 sites. In respect of the other 6 sites, not even one tender was received. Shortly, for the 8 sites which were tendered for, a few received just one tender, a few others two tenders, and a few others three tenders.

Mr Yeoh Ghim Seng (Joo Chiat): Can the Minister say whether the reclamation of the sea-bed opposite the Golden Mile will affect the popularity and demand of the Golden Mile?

Mr Barker: The Member for Joo Chiat has something in what he says. I have said just now that the main reason, we think, for the lack of tenders for the Golden Mile projects is the huge capital required. But another reason is the one put forward by the Member for Joo Chiat. We have a scheme to reclaim the sea off the Esplanade, and perhaps this scheme is frightening away some investors who would not like to put up hotels and then find that the sea has gone back by 500 to 600 feet.

Mr Tang See Chim (Choa Chu Kang): Mr Speaker, Sir, is this then not contradictory policy on the part of the Ministry of National Development? And what is the Minister going to do about it?

Mr Barker: I see no contradiction in the policy, Sir. One is reclamation, and the other is an entirely different project. When you reclaim the sea, you get valuable land. And if these sites along the Golden Mile are not taken up after the reclamation, we will probably have better sites along the sea coast. As I have pointed out the other day to a Member here, reclamation does not mean that the sea coast disappears.

Mr Lim Cheng Lock: Does the Minister agree that the incentives were inadequate to attract the public to tender for the other projects?

Mr Barker: I disagree with the Member. In my view, the incentives are more than sufficient to attract investment and, in fact, the incentives that we offer are the best in South-East Asia.