HOUSING AND DEVELOPMENT BOARD (Validity of Consent Fee)

[Mr Speaker in the Chair]

Mr Ong Teng Cheong asked the Minister for Law and National Development if he will ascertain from the Housing and Development Board the reasons and justification for imposing a Consent Fee of 2% based on the total estimated cost of proposed renovation or alteration works to be carried out to leased Housing and Development Board properties; and whether such levy is legally valid.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker, Sir, a 2% fee was levied, where Housing and Development Board land is leased to industries, for extensions or alterations to their premises. The fees were collected more as an increase in the premium because of the more intensive usage of the land rather than to defray processing costs. The charge is valid as it is provided for in a clause of the lease. The fees are not charged for shop premises which are on rental nor do they apply to extensions to residential properties sold. These fees have been waived for industries for this year in view of the present economic conditions.