LAND ACQUISITION (AMENDMENT) BILL

Order for Second Reading read.

3.21 p.m.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, various measures need to be taken to curb speculation in land and to keep prices of houses for our citizens within reasonable limits. Quite apart from the continuing need to acquire more land for housing as well as for other public projects, it will also be necessary to acquire properties left undeveloped by owners who are obviously speculating in land - land which the public interest dictates should be better utilized.

Sir, the Land Acquisition (Amendment) Bill before this House provides specifically for the following basic changes in the existing law relating to the compulsory acquisition of land: -

(a) It freezes prices payable on acquisition of land under the Act to the base of market value as at 30th November, 1973, or at the dates of the appropriate Gazette notification under the Land Acquisition Act, whichever is the least.

(b) The market value of acquired land shall be deemed not to exceed the price which a bona fide purchaser may reasonably be expected to pay for the land on the basis of its existing use and in anticipation of the continued use for the purpose designated in the Master Plan. Zoning, density requirements and other restrictions imposed under the Planning Act as well as any restrictive covenant in the title of the acquired land shall be taken into account in determining market value, but no account will be taken of any potential value of the land for any other more intensive use. This will obviate the argument that is sometimes made where land has been zoned for a restrictive use, as for example, "public open space", that the land has got considerable potential for development for residential or other purposes. In future, such arguments based on the hypothetical consideration that a future change of zoning or use will be granted by the Planning Department will not be taken into consideration in determining the compensation payable upon acquisition. Thus, land zoned "Agriculture", "Rural", "Green Belt" or "Unclassified" at the time of acquisition, will be valued as such.

(c) In the acquisition of land used as burial grounds, for the purpose of compensation, consideration in cash or kind already received by the owner of the acquired land by the sale of grave plots, will be taken into account. Again, any potential value of such land on the basis that it could be put to more intensive use will be disregarded.

(d) Other amendments tighten existing provisions to discourage speculation and fictitious transactions aimed at securing a higher value for such land, or are redrafts of existing provisions to make intentions more explicit.

Sir, clause 2 of the Bill amends the definition of "person interested" to provide that a statutory tenant, under the Control of Rent Act, of any acquired land cannot claim any compensation on account of acquisition of land. Attempts have been made before Collectors of Land Revenue to draw a distinction between a "statutory tenant" and a tenant from month to month who, under the existing provision, is not entitled to compensation. Re-defining the section to specifically exclude rent-controlled tenants would make it abundantly clear that such persons are not entitled to compensation, and would therefore reduce the number of claims made to the Collector of Land Revenue.

Clause 3 provides for a hiatus in the law. A notification made under section 3 of the Act (which is a notification that land is "likely to be acquired" for a public purpose) will lapse after a period of one year if not followed by the publication of a declaration of acquisition under section 5 of the Act.

Clause 4 provides for a new Collector of Land Revenue to continue to hold an inquiry which was previously held by another Collector, and enables the new Collector to lodge the grounds of the award on behalf of another Collector who has ceased to hold office. This amendment is administratively desirable as it would obviate the need for inquiries to be held afresh consequent on transfers of officers.

Clause 6 provides for the cost of an appeal to be paid by the appellant if the appeal is withdrawn without any agreement being made by the parties thereto as to costs.

Clause 7 repeals and re-enacts section 33 of the Act which provides for the matters to be considered by the Appeals Board in determining compensation to be awarded for the land acquired under the Act.

In addition to the basic changes I mentioned earlier of freezing land values and of disregarding potential value, the following changes are also made: -

(a) the actual earnings of a person affected by acquisition of his land, shall be disregarded by the Board in assessing compensation for the land acquired;

(b) the Board shall take into account any fees for costs relating to any survey, issue and re-registration of title, stamp duty and other costs.

Clause 8 of the Bill amends section 34 of the Act to provide that the Board in assessing compensation shall disregard the following matters: -

(a) Oral or documentary evidence of any conveyance, assignment, transfer or other disposition affecting the acquired land, unless the instrument has been duly stamped and registered in the Registry of Land Titles and Deeds and filed with the Chief Assessor of Property Tax prior to the date of publication of the declaration under section 5 of the Act. The Appeals Board must be satisfied that the conveyance, assignment, transfer or other disposition affecting the acquired land is made bona fide and not for the purpose of increasing the value of such property artificially and the onus of proving that the instrument was made bona fide is placed on the appellant.

(b) Evidence of sales of comparable properties, unless the Board is satisfied that the sales are made bona fide and not for speculative purposes and the onus of proving that the transactions are made bona fide shall lie with the appellant.

These provisions are designed to discourage speculative transactions and to prevent persons from making claims for higher compensation of acquired land by making use of bogus land transactions.

Clause 9 enables the Collector of Land Revenue to serve any notice under the Act on any agent authorised to receive service on behalf of the person named in the notice.

Clause 10 redrafts the section empowering the Government to withdraw from the acquisition of any land or part thereof, of which possession has not been taken.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. -[Mr Barker].

Bill considered in Committee; reported without amendment; read a Third time and passed.