HOUSING LOANS TO CIVIL SERVANTS (Particulars)

Mr N. Govindasamy asked the Minister for Finance (a) how many applications have been received from, civil servants for loans to purchase houses built by private developers from 1st January, 1964, up to the latest convenient date, and the total amount of the loans applied for; (b) how many of the applications have been approved, and what is the total amount of the loans granted; (c) what are the reasons or grounds for rejecting an application; and (d) whether he will consider relaxing the rules governing applications for housing loans by granting loans to civil servants who are already living in their own houses and who wish to exchange their existing houses for bigger ones.

Mr Tang See Chim (for the Minister for Finance): Mr Speaker, Sir, the answer is as follows:

(a) Up to 30th September, 1969, 992 applications for loans amounting to $22,721,460 were received.

(b) A total of 771 applications for loans amounting to $16,775,770 were approved. Ninety-two applications for loans amounting to $2,013,400 were withdrawn. Thirty-five applications for loans amounting to $810,180 are under consideration.

(c) Applications are rejected where the applicant is ineligible under the Government Officers' Housing Loan Scheme, e.g. where the applicant already owns a house, and has previously been granted a loan to purchase a house.

(d) Each case is considered on its merits. As a general rule, because the interest rates are low and the Scheme is intended to assist those who do not own houses, the exchanging of houses for bigger ones is not allowed, unless there are exceptional circumstances.

Mr N. Govindasamy (Telok Blangah): Sir, it is not a question of exchanging a house. What would be the answer in the case of an officer who having had a housing loan now sells the house with the intention of buying another?

Mr Tang See Chim: As I said, Mr Speaker, Sir, the interest rates for housing loans are very low. Also, these loans are primarily meant to help Government officers who do not own houses. If they already had housing loans, normally their applications would not be approved unless there were special circumstances.

Mr N. Govindasamy: Sir, can the Parliamentary Secretary enlighten. me on what the "special circumstances" are before an officer is entitled to a second loan?

Mr Tang See Chim: Mr Speaker, Sir, each application will be considered on its merits. Unless the applicant lists his special circumstances, I will not be able to tell the Member whether or not the application will be approved. But if he has any particular application in mind, perhaps he will send it to the appropriate authority who will no doubt consider it.

Mr Low Yong Nguan (Crawford): Sir, can the Parliamentary Secretary inform the House of any example of "special circumstances" that has been applied in such a case?

Mr Tang See Chim: Mr Speaker, Sir, all cases will be considered on their merits. Unless the Member can give a particular case, I cannot really answer his question. To do so would, in fact, just be an academic exercise.

Mr P. Govindaswamy (Anson): Sir, is there any discrimination between lowly-paid and highly-paid Government officers in the consideration of housing loans?

Mr Tang See Chim: I do not think so, Sir.