APPORTIONMENT OF RENTS (AMENDMENT) BILL

Order for Second Reading read.

2.45 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, quit rents are payable to the Government in respect of lands held under State leases as well as Statutory Land Grants which are grants in perpetuity issued under the State Lands Act. In the case of land held under a State lease, the owner may make an application under the Apportionment of Rents Act for apportionment of the rent payable in respect of the land, where there has been a subdivision. The Act does not, however, make it mandatory for the owner to make an application for apportionment and often no such application is made. In such a case, the Collector of Land Revenue can only apportion the rent when the subdivision of the land subsequently comes to his knowledge. This procedure has been found to be unsatisfactory and entails delay in apportionment of the rent. Moreover, land held under a Statutory Land Grant does not at present fall within the ambit of the Apportionment of Rents Act. An apportionment of the rent payable in respect of such land is done administratively.

The Bill now before this House will make it mandatory for the owner of land held either on a State lease or a Statutory Land Grant to inform the Collector of Land Revenue of any approved subdivision of his land by the Competent Authority under the Planning Act, so that the apportionment of the rent may be appropriately made without delay. Under the Bill a penalty not exceeding $500 will be imposed for non-compliance with this requirement.

Sir, I beg to move.

Question proposed.

Mr Ong Teng Cheong (Kim Keat): Mr Speaker, Sir, I would like to request the Minister to explain to this House why it is necessary to make it obligatory for a landowner to inform the Collector of Land Revenue of any approved subdivision. Why not make it obligatory for the relevant authority to inform the Collector of Land Revenue of the subdivision when approving the application? I can understand the situation where if a landowner subdivides his land without Government approval, then it is fair that he must inform the Government.

I find it rather difficult to perceive in this particular situation where the Government approves an application for land subdivision and then requires the landowner to inform the Government that his application has been approved by the Government. I would have thought that this is a simple inter-departmental communication - one arm of the Government telling the other arm what is happening. Why rely on the people to do the transmission work and then penalise them on default?

Mr Barker: Sir, sometimes, as the Member has pointed out in the Budget debate, one Government department does not inform the other department. It usually does, but sometimes one does not catch up with the other. Therefore, the object of the Bill is to put the burden on the applicant, whose application for subdivision has been approved, to in-form the relevant department so that the Collector may apportion the rent. The penalty provided is really not excessive for non-compliance.

Mr Ng Kah Ting (Punggol): Sir, first of all, may I say that I fully support this amendment Bill. I would like to seek clarification from the Minister. 1 note that in the Explanatory Statement to the Bill a penalty not exceeding $500 will be imposed for non-compliance with this new requirement. I think this penalty is far too small a sum to impose. I believe that during the property boom land prices soared up to incredible levels. As a result, quite a number of landowners put up subdivisions of land for eventual sale. If that is the case, then the penalty on them must be heavy enough to deter them from taking the law into their own hands. I hope the Minister would care to clarify this point.

Mr Barker: Sir, there is nothing to clarify. This is a new amendment and, in the light of what the Member for Kim Keat has stated, I would prefer to leave the maximum penalty at $500 rather than to impose a punishment which might be too punitive.

Mr Ong Teng Cheong: Mr Speaker, Sir, the Minister said that the purpose of the Bill is to enable the Collector of Land Revenue to apportion the rent. I am of the view that it is rather premature to inform the Collector within one month from the date of obtaining approval of subdivision from the relevant authority, as the land would still be under the same ownership at that stage. Therefore, the question of apportionment of rent does not arise.

Besides, the owner of the land may decide not to proceed further with the subdivision. He may decide not to obtain separate titles for the subdivided plot through the Registrar of Land Titles and Deeds. The apportionment of rent will only be effected when separate titles for the approved subdivided plots are issued. Would the Minister not agree then that it would be more appropriate for the Collector of Land Revenue to be informed at that stage in order to enable him to apportion the rent?

Mr Barker: No, Sir. The lessee or grantee is asked, after he has obtained written permission from the competent authority to subdivide his land, to inform or make a notification to the Collector in writing within one month from the date of approval. If he changes his mind, he can always inform the Collector again. But the important date is when the subdivision has taken place. Conveyance might be done later. 1 think one month should be ample time for the purposes of this Bill. In any event should the Member be proved right, and if there are teething troubles with this Bill, we will extend this period.

Mr Ong Teng Cheong: Sir, I would like to thank the Minister for his explanation. If the Bill must be passed today as it stands, and I believe it is going to be passed, may I make an appeal on behalf of the ordinary citizen? We know that ordinary citizens are not conversant with the numerous legislations that exist and are usually unaware of the hidden rules and regulations which are introduced from time to time as amendments are made to this or that Act. May I request the Minister, therefore, to assure the House that he will instruct the relevant authority, when approving any subdivision of land, to advise the landowner of his obligation to inform the Collector of Land Revenue of such approval within one month from the date of granting of the written permission.

Mr Barker: Yes, Sir, we will do that.

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 E.W. Barker].

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