PLANNING (AMENDMENT) BILL

Order for Second Reading read. 7.30 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."

There has been no comprehensive revision of the Planning Act since it first came into force in February 1960. A thorough review of the Act has, therefore, been carried out to weed out obsolete provisions and to update requirements and procedures so as to facilitate and control physical development in Singapore. The Amendment Bill is intended to clarify ambiguities in the existing Act and to streamline planning practices to cater for our rapid pace of development.

A major amendment is to empower the Competent Authority to require developers to retain at least 30% of the floor area of any development project under a single owner for a period of 10 years from the date of the latest grant of a temporary occupation licence. During the 10 years, developers will only be allowed to sell this portion en bloc: to a single buyer so that there will be a substantial owner to ensure the proper maintenance and management of the building. This requirement is not expected to cause any hardship to developers but will assist in upgrading the standard of building maintenance.

This is not a new requirement as the URA has imposed it as a condition for its sale of land for commercial development. The condition will be applied to large commercial buildings, which are those with total office and shopping floor areas of 5,000 sq metres and above. These include shopping complexes, office buildings, mixed shopping and office buildings and hotel buildings with shops. For mixed office/shopping/residential complexes, the condition will apply to the shops and office units, but not the residential units. For hotel buildings with shops, the condition will apply to the shopping units only if the shopping area exceeds 5,000 sq. metres.

Developers or owners will be allowed to indicate, within two years of building plan approval, the areas to be designated under the 30% floor area to be held under one title. Even areas not contiguous to one another can be included under the required 30% floor space for retention under one title.

The Amendment Bill also seeks to empower the Competent Authority to defer consideration of an application for planning permission to develop land if, as a result of unavoidable circumstances, the decision on the application cannot be made within the specified period. There are occasions when the Competent Authority is unable to make a definite decision on a planning application because the area concerned is still under study to optimize its development. In such cases the authority concerned will speed up its studies to facilitate an early decision.

The Competent Authority will also be empowered to grant planning permission for a limited period only. This is necessary in certain cases where permanent permission cannot be granted. For example, temporary permission is necessary for numerous change of use cases where it is not appropriate to grant permanent permission in view of the type of structures for the proposed use, the nature of usage and future developments affecting the areas concerned.

The existing section 29 of the Act enables the Government to levy a development charge on any appreciation in the value of any land arising from an alteration to the Master Plan made at the request of the developer. The proposed new section 29 (1) (d) is to enable development charges to be collected for alterations to the Master Plan made by the Competent Authority at its five-yearly review of the Master Plan. During the review the Competent Authority may find it necessary to rezone certain areas for more intensive uses, although no applications for such development have yet been received. This would confer a windfall in land appreciation on the land owners unless the Government is able eventually to tax part of the appreciation in the form of development charge. The land owners would be required to pay the development charge only if they subsequently submit applications to develop the land in accordance with the new Master Plan zones.

The proposed section 29 (1) (e) enables development charge to be collected on a modification of the planning permission in respect of an existing development, if such modification permits additional plot ratio or floor area resulting in an appreciation in land value. For example, in the case of a site that has been altered from residential to commercial zone for a development at, say, a plot ratio of 2.5, development charge would have been collected up to the approved plot ratio of 2.5. If the developer subsequently proposes additional floor areas which would bring the plot ratio up to, say, 2.8, additional development charge for the floor areas represented by the further increase in plot ratio of 0.3 would be payable. This is equitable since if the developer had proposed a plot ratio of 2.8 in the first instance, he would also have paid development charge up to this amount.

The proposed section 29 (1) (o is to levy development charge for approved development which is not in conformity with the Master Plan when planning permission is granted but does not require a formal alteration to the Master Plan. An example of such a case would be when ancillary shops or other non-residential uses of commercial value are to be allowed within a residential development on Residential Zone land. Another example is when the commercial or office areas are to be allowed to exceed the level prescribed in the Master Plan for industrial or warehouse developments in Industrial or Warehouse Zones. Without such flexibility in the planning process, the proposed developments would not be permissible.

The amendment to section 28 is to empower the Minister to make rules to provide for the payment of a small deposit for early determination of the development charge and initiation of the rezoning process. This is to ensure that the applicant is serious about proceeding with the project. The deposit will form part of the development charge if the project proceeds but will be forfeited if the applicant subsequently abandons the proposal, making the rezoning exercise an abortive one.

The amendment to section 32 empowers the Minister to make rules to provide for the refund, wholly or in part, of the development charge paid by any person under certain circumstances and to prescribe, by notification in the Gazette, the rate of interest for development charges which are paid by instalments. Under the existing Act, the rate of interest, which is fixed at 6% per annum, does not reflect the present cost of funds.

The Bill also seeks to provide enhanced penalties for contravention of the provisions of the Planning Act. The procedure for serving of enforcement notice is also amended to enable the Competent Authority to serve notices on owners of land or the occupier or the person responsible for any contravention of the Act or all of them. Under the existing provision, action could be taken against the owner or occupier but not both.

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. 7.41 p.m.

[Mr Speaker in the Chair]

Clause 1 -

The Chairman: The citation year will be altered from "1981" to "1982".

Clause 1 ordered to stand part of the Bill.

Clauses 2 to 5 inclusive ordered to stand part of the Bill.

Clause 6 -

The Chairman: The citation year will be altered from "1981" to, "1982".

Clause 6 ordered to stand part of the Bill.

Clauses 7 to 10 inclusive ordered to stand part of the Bill.

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