PURCHASE OF HDB/HUDC FLATS (Priority for owner-occupiers of land acquired and compensated at higher vacant possession values)

Mr Ng Kah Ting asked the Minister for National Development whether he is aware that, in compulsory acquisition of land for public development, some owner-occupiers of small plots of land offer vacant possession in order to get higher compensation than the compensation they would got for encumbered land, and if the relevant authority will consider giving priority to such persons to purchase Housing and Development Board or Housing and Urban Development Company flats as the compensation they receive is hardly enough for them to purchase a private housing unit.

Mr Teh Cheang Wan: Sir, owners of land who can offer vacant possession on acquisition are compensated at a higher value than encumbered land because the Government does not have to shoulder the financial burden of resettlement compensation and give priority to purchase HDB flats. The value of compensation for encumbered land is therefore lower, Owner-occupiers, however, cannot have it both ways. If they are in need of housing, they should opt for compensation based on encumbered land values so that they can get resettlement benefits including priority for the purchase of HDB flats.

There is no priority allocation for HUDC flats to resettlement cases.

Encik Mansor Haji Sukaimi (Kampong Kembangan): Sir, is the Minister aware that in cases where landlords have leased out or rented out their premises to tenants, the problem of getting alternative housing following acquisition of the land by Government does not fall on the landlord but on the tenant? Is there any way by which Government can be of any assistance to such tenants?

Mr Teh Cheang Wan: Sir, tenants generally fall into two groups. The first group is protected by the Control of Rent Act. These tenants do not have to move out because under the Control of Rent Act, the land-owners cannot sell their land to the Government as unencumbered land. Therefore, the tenants are eligible for alternative HDB accommodation. But the second group of tenants is not protected by the Control of Rent Act and the landowner has the right to sell the land to the Government as unencumbered land. If he does so, the tenant has to move out. These unprotected tenants are not eligible for alternative accommodation by the HDB.

Encik Mansor Haji Sukaimi: It is true that they have no right in the eyes of the law but, as a social problem, they lose both ways. On the one hand, the landlord gets the money from rentals and also tom compensation. On the other hand, the tenant does not get assistance from anybody and the landlord does not have any obligation on his part to provide for alternative accommodation for the tenant. I wonder if the Ministry could look into such problems and see whether some form of assistance could be rendered to such tenants.

Mr Teh Cheang Wan: I think the law has to be followed, and the Government cannot grant special consideration to these tenants, Otherwise people who have been served with notices to quit from their luxurious flats or bungalows will also come to the Government and say, "My landlord has thrown me out, so please give me alternative accommodation."