HOUSING AND DEVELOPMENT (AMENDMENT) BILL

Order for Second Reading read. 5.29 p.m.

The Minister for National Development (Mr Teh Cheang Wan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Under the existing rules, applicants and purchasers of Housing and Development Board (HDB) flats, including their spouses and other authorised occupiers, are not allowed to own other properties. The HDB may compulsorily acquire the flats of existing flat owners if this condition is breached. Those who wish to purchase commercial properties for their own business are thereby penalised as well.

This Bill proposes to allow applicants and purchasers of HDB flats to own commercial properties for their own business provided the HDB's written consent has been obtained and the property value does not exceed $250,000 or any higher value that may be decided.

The other aspect of the Bill is to prescribe penalty fees for infringements of the conditions covering application, sale and usage of HDB flats. At present, the HDB can only resort to compulsory acquisition of the flats for such infringements. The fees will be imposed for cases which do not warrant compulsory acquisition. This will enable the HDB to be more effective and flexible in its enforcement.

Sir, I beg to move.

Question proposed.

Dr Ang Kok Peng (Buona Vista): Mr Speaker, Sir, on 27th May, 1977, I first touched on the question of an amendment to subsection (1) of section 48A of the Housing and Development Act to allow an owner or lessee of a Housing and Development Board flat to purchase a commercial property for conducting his own business. I am gratified that the Amendment Bill before the House has incorporated such an amendment.

However, I would like to seek clarification from the Hon, Minister on subsection (1 A) of section 48A regarding this amendment. There is no mention of joint ownership of a commercial property, In this connection may I ask whether any owner or occupier of an HDB flat can purchase jointly with others a commercial property of any value so long as his share of the commercial property does not have a value exceeding the amount regulated by this subsection.

Mr Teh Cheang Wan: Yes, the joint ownership will be allowed.

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 Teh Cheang Wan].

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