CENTRAL PROVIDENT FUND DEPOSITS (Payment of property tax on Housing Board flats)

Mr Cheong Yuen Chee asked the Minister for Foreign Affairs and Minister for Labour if he will consider introducing amending legislation to allow owner-occupiers of Housing and Development Board flats who are unemployed or in straitened circumstances to utilise their Central Provident Fund deposits for the payment of property tax on their flats.

Mr S. Rajaratnam: Mr Speaker, Sir, owner-occupiers of Housing and Development Board flats are already favourably treated in that they are allowed to use their Central Provident Fund deposits towards an initial down payment and monthly instalments on their flats. It would defeat the essential purpose of the Central Provident Fund - which is savings - were this advantage to be extended further to enable contributors to use their C.P.F, deposits towards payment of property tax. To allow them to withdraw money for this purpose would be conceding to Housing and Development Board flat owners an advantage not enjoyed by other property owners who may be equally hard pressed in regard to payment of property tax.

Mr Cheong Yuen Chee (Toa Payoh): Mr Speaker, Sir, my question is framed in such a way that I am asking whether this facility can be extended only to owner-occupiers who are unemployed or in straitened circumstances. I agree with the Minister that it should not be done for all owner-occupiers. In my meet-the-people sessions, I have come across people who had utilised their C.P.F, deposits to purchase a Housing Board flat and, after a year or so, they found themselves out of a job, and because of age and other circumstances, they were unable to obtain any alternative employment and so were in no position to pay the property tax.

Mr Rajaratnam: Mr Speaker, I repeat that the principle of the Central Provident Fund is saving. Buying a house is another way of saving - providing for yourself. But to allow the C.P.F, deposits to be used either to pay property tax or to sustain yourself conflicts with the principle of the C.P.F.