LAND ACQUISITION (Differences in valuations and rates of compensation)

[Mr Speaker in the Chair]

Mr Yeo Toon Chia asked the Minister for Law and the Environment what is the reason for the difference in the rates of compensation and valuation in respect of land in the same locality acquired by different Government departments and statutory boards; how land to be acquired is valued, and why some of the cases have been referred to the courts resulting in an increase in compensation; and if his Ministry will consider setting up a committee to regularise the valuation of land to be acquired by Government departments and statutory boards.

The Minister for Law and the Environment (Mr E. W. Barker): Mr Speaker, Sir, differences in valuations and the rates of compensation payable in respect of lands in the same locality, arise mainly because no two parcels of land are identical in all respects. Each parcel of land has its own characteristics depending on the tenure, Master Plan zoning, state of encumbrances, physical characteristics, the improvements thereon and accessibility to services. All these factors affect market value. Moreover, valuation is not an exact science and there is considerable scope for variations in opinions between valuers.

Under the provisions of section 23 of the Land Acquisition Act, a claimant is entitled to appeal to the Appeals Board, which is presided over by a High Court Judge, against the Collector's award, if he feels that the compensation is inadequate. Under section 35 of the Act, the Appeals Board shall not reduce the amount awarded by the Collector, but may increase it.

Centralising valuations has been considered and rejected. The Management Services Department of the Ministry of Finance considered that setting up a central Acquisition Division to conduct compulsory land acquisitions in contradiction to the present practice of close consultation between valuers serving in Government or statutory boards would, on balance, be a retrogressive step.

The Member will be aware of the provisions of sections 33 to 34 of the Land Acquisition Act (Cap. 272), which sets out the matters to be considered as well as those to be disregarded in determining compensation payable for lands compulsorily acquired. The concept of market value is used as the basis for compensation. When assessing the amount of compensation, Collectors are required to take into consideration the market value of the land as at the date of publication of the declaration of acquisition, or the 30th day of November, 1973, whichever is the lower.