PLANNING (AMENDMENT) BILL

Order for Second Reading read. 3.16 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."

The present system of levying development charge for rezoning and for increases in plot ratio and density is based on flat rates. These rates were prescribed in 1965 and are now grossly unrealistic. In addition, the fixed-rate system does not accurately reflect the change in land value arising from rezoning since it does not take into account the original zoning and other factors such as location and accessibility which affect land value. Under the system, development charge is payable on rezoning even though there may be no increase in land value.

The Bill seeks to give effect to a new and equitable system of levying development charge. Under the new system, development charge will be at a prescribed percentage of the appreciation in land value or at revised fixed rates, whichever is higher. The percentage to be prescribed, under subsidiary legislation, will be 70%. This valuation method will reflect more accurately the increase in land value. The revised fixed rates are intended to serve as a guide to landowners who wish to submit proposals which require rezoning.

The Bill requires the development charge to be paid only if there is an appreciation in the value of the land. It empowers the Chief Valuer, or such other person as the Minister may appoint, to determine the amount of appreciation in the value of the land arising from the g!ant of planning permission which involves rezoning and increases in plot ratio or density.

The Bill also provides that appeals shall be submitted within 30 days of the notice of the development charge. An appeal fee which will be prescribed must be paid before an appeal can be considered. The appellant will be allowed to proceed with the development without waiting for the outcome of the appeal, if he pays up the development charge. If the appeal succeeds, the difference between the amount paid and the development charge determined by the Minister shall be refunded to the appellant.

The valuation system represents a rational approach to meet the demands for development which require rezoning. It is an equitable system and gives an incentive to the developer who retains 30% of the increase in land value. With the new system, Government will be more flexible when evaluating development proposals which involve rezoning or increases in plot ratio or density, especially in areas which are suitable for rezoning.

Sir, I beg to move.

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.