JTC EXECUTIVE FLATS (Use of CPF contributions to purchase)

Mr Ho Kah Leong asked the Minister for Labour if he will consider the utilisation of Central Provident Fund contributions by contributors to purchase "Executive Flats" built by the Jurong Town Corporation.

The Minister for Labour (Mr Ong Pang Boon): Mr Speaker, Sir, this is not the first time that the Member for Jurong has raised this question, and I am afraid I have to disappoint him again.

The Central Provident Fund is established to provide compulsory savings for workers for their old age or when they become permanently disabled. The Government has, however, allowed members of the Fund to use their CPF savings and contributions to buy publicly built flats. Under the Central Provident Fund (Approved Housing Scheme) Regulations, 1968, members of the Fund are allowed to use their CPF contributions to buy flats built by the Housing and Development Board and the Jurong Town Corporation for the lower income group. Members of the Fund in the middle income group on the other hand are allowed under the Central Provident Fund (Approved Middle Income Housing Scheme) Regulations, 1975, to use their share of the CPF contributions to buy flats built by the Housing and Urban Development Co. (Pte) Ltd. These two housing schemes go a long way to assist a great majority of citizens in purchasing a flat. In view of this, it has been decided not to extend the use of CPF contributions for the purchase of other properties. I therefore regret to inform the Member for Jurong that CPF contributions will not be allowed to be used for the purchase of executive flats built by the Jurong Town Corporation.

Mr Ho Kah Leong (Jurong): (In Mandarin): Sir, if you will recall, when I raised this question some time ago the situation was quite different. At that time the HUDC had not yet been established. But today the HUDC is in existence and its object is to provide housing for the middle income group. Those in the middle income group are allowed to use their share of the CPF contributions to purchase flats built by the HUDC. What is the difference between the flats built by the JTC and the HUDC? The flats are almost the same. And since CPF contributions can be used for the purchase of HUDC flats, why is it that CPF contributions cannot be similarly used to purchase flats built by the JTC? Es this not some sort of discrimination against flats built by JTC for people living in JTC estates? I think that we should not deny people living in Jurong Town the opportunity to -

Mr Speaker: Mr Ho, what is your supplementary question?

Mr Ho Kah Leong: (In Mandarin): Mr Speaker, Sir, I am coming to it. My supplementary question is this. On the assumption that the Government has no intention to allow members of the Fund to use their contributions for the purchase of executive flats built by the JTC, does the Government then intend to allot a piece of land for HUDC to build flats for the middle-income group in Jurong Town?

Mr Ong Pang Boon: Mr Speaker, Sir, I am not in charge of the allocation of land to the Jurong Town Corporation. The Member for Jurong should direct his question to the appropriate authority.

The same point has been raised by the Member for Jurong at the time of the last Budget debate and I think the Finance Minister had already answered his point. The position has not changed very much. In fact, I would say the position has improved with the HUDC scheme. So I do not think the Government is prepared to deviate further from the objectives of the Central Provident Fund.