PROPERTY ACQUISITION (Payment of compensation)

Mr Lee Teck Him asked the Minister for Law and National Development whether he will consider the payment of reasonable compensation when acquiring lands and houses.

The Parliamentary Secretary to the Minister for Law and National Development (National Development Division) (Mr Ho Cheng Choon) (for the Minister for Law and National Development): (In Mandarin): Mr Speaker, Sir, under the Land Acquisition Act, 1966, Government pays reasonable compensation to owners of lands and houses when their property is acquired.

The principles for the determination of compensation are provided in section 33 of the Act. The Member may recall that the provisions of the Act were considered by a Select Committee. The Committee also considered representations from various quarters before the Bill was passed. Owners of lands and houses to be acquired are given reasonable and just compensation in accordance with the Act. Furthermore, under this Act, the owners concerned have the right to appeal if they are not satisfied with the compensation given to them.

Moreover, under this Act, if a person has a temporary house or fruit trees in somebody else's land, he too would get compensation under the rehousing scheme.

Mr Lee Teck Him: (In Mandarin): Sir, the Parliamentary Secretary in his explanation mentioned the Land Acquisition Act, 1966. Of course, I dare not oppose that law. But the Government should give reasonable compensation. It acquires lands at a very low price but sells them at a high price. There is no provision in the Act prohibiting such practice of the Government. The Government does not take into consideration the present market price of lands. There is a great difference in the present market price of land as compared to that in 1961.

Mr Speaker: Order. Mr Lee, what is your supplementary question, please?

Mr Lee Teck Him: (In Mandarin): Sir, I wanted to say that the law on acquisition of lands should have provisions to the effect that the Government must not pay compensation at a low rate when the market price of the land is high. The rate should be dependent upon the prevailing market price of the land.

Mr Speaker: Mr Lee, you can question the Minister or the Parliamentary Secretary on the administration of the Land Acquisition Act. But I do not think you can question them on the provisions in the Act. The Parliamentary Secretary's answer was that compensation is based on the provisions in the Act. Is your supplementary question directed to bring about a change in the law or its administration?

Mr Lee Teck Him: (In Mandarin): Sir, what I meant was that the Government should compensate the landowners according to the prevailing market price of lands.

Mr Ho Cheng Choon: (In Mandarin): Sir, in my answer to the Member for Ulu Pandan, I mentioned that payment of compensation is based on section 33 of the Land Acquisition Act, 1966. If the Member has read section 33 (a), he will see that it is clearly stated that in acquisition, the market value is one of the factors to be taken into consideration in determining compensation. So how can he say that the Government disregards the market price?

Mr Lee Teck Him: (In Mandarin): Sir, I would like to give an example. In the North Bridge Road vicinity, I was told that compensation is paid at the rate of $8 per square foot. But the present market price is $112 per square foot. How can there be such a big difference? Perhaps the assessor was wrong in determining the compensation rate. I would also like to add that further consideration should be given to improve the Land Acquisition Act.

Mr N. Govindasamy: Sir, will the compensation given when Government acquires land be extended to tenants as well as sub-tenants of houses which are affected as a result of acquisition by Government?

Mr Ho Cheng Choon: Sir, compensation for acquisition is paid only to owners of lands and houses.

Mr N. Govindasamy: Sir, will the Ministry look into the possibility of extending compensation to tenants and sub-tenants as well, because they suffer just as much as, if not more than, the owners of the houses?

Mr Ng Yeow Chong rose -

Mr Speaker: Order. Mr Ng, Mr Govindasamy's second supplementary question has yet to be answered, if it is intended to be answered.

Mr Ho Cheng Choon: When Government acquires a piece of land, only the landowner is compensated. But when the Government evicts the tenants on a piece of land, we have a compensation scheme to deal with the tenants and sub-tenants.

Mr Ng Yeow Chong: Sir, will the Land Office accept the valuation report by a licensed valuer or a recognised valuer if the owner presents such a report to support his claim?

Mr Ho Cheng Choon: Yes, we can consider the report submitted by a licensed valuer.

Mr N. Govindasamy: Sir, the question is: will the Land Office accept or just consider the report'?

Mr Ho Cheng Choon: The Land Office will consider whether to accept it or not.