SALE OF OCCUPIED HDB FLATS AT CURRENT MARKET PRICES

Mr J.B. Jeyaretnam asked the Minister for National Development whether, in view of the decision of the Ministry of Finance to offer for re-sale flats in Neptune Court and Lagoon View at their original cost prices, his Ministry will refer the decision of the Housing and Development Board to sell occupied flats at current market prices, departing from the policy of the Ministry of Finance, to the Cabinet for a policy ruling whether the Board's decision is the right one.

Mr Teh Cheang Wan: Mr Speaker, Sir, in making the comparison as contained in the question, the Member for Anson appears confused that the Ministry of Finance and the Housing and Development Board are administering the same housing scheme, when in fact they are totally different schemes.

Neither the Ministry of Finance nor the HDB is changing the rules for their respective housing schemes. The re-sale of vacant flats at Neptune Court and Lagoon View to public officers at low prices is consistent with the Government's policy of offering cheap staff housing as an incentive for civil servants to remain in the service. Civil servants who buy these flats have to serve Government for at least 10 years. Since 1978, 30 flats in Neptune Court and Lagoon View have been returned to Government from those who did not serve out the 10-year period. These were resold to other civil servants at the original prices. In view of the Member for Anson's question, the Ministry of Finance may review the resale price in future.

There is no reason for the HDB to discriminate in favour of sitting tenants who wish to buy over their flats as against other public applicants, by according the sitting tenants lower selling prices. Since 1968, the HDB has been selling flats to sitting tenants and other applicants, including resettlement cases, at uniform prices. This is a fair policy as everybody is treated equally. 20,345 units of flats have been sold on this basis under the Sale of Flats to Sitting Tenants Scheme. The very small number of flats not taken up by sitting tenants have been sold to other public applicants and resettlement cases at the same prices paid by sitting tenants.

Nevertheless, to help as many sitting tenants as possible to buy over their flats, the HDB grants several concessions under the Scheme. To help those who do not have sufficient balances in their CPF accounts or who are self-employed, the Board waives the 20% down-payment for sitting tenants. On the other hand, sitting tenants who have done well and whose incomes have exceeded the eligibility ceiling are also permitted to buy their flats, as income ceiling is waived under the Scheme.

From the HDB's experience since 1968, the overwhelming majority of sitting tenants know the Scheme is fair. There is, therefore, no justification to revise the present policy which is sound and hence widely accepted.

Mr Jeyaretnam: Mr Speaker, Sir, I am again indebted to the Minister for his lengthy statement. But my question was whether he would refer this disparity between the Ministry of Finance and his Ministry to the Cabinet, and if he will not, why. The other question is: the Mihister says that the policy of the HDB is accepted by the majority of the sitting tenants. Has the Minister taken a census of the views of all these people?

Mr Teh Cheang Wan: Mr Speaker, Sir, as regards the first supplementary question of the Member for Anson, I have already given an answer. I do not consider it necessary to refer the matter to the Cabinet because these two housing schemes are entirely different and the only person who is confused about the scheme is the Member for Anson.

As regards his second supplementary question on whether a census has been taken on the sale of flats, the answer is yes. The HDB has taken a census.

Mr Jeyaretnam: On the views?

Mr Teh Cheang Wan: On the views, yes, The HDB has asked the sitting tenants whether they wish to buy the flats in which they are now staying. We have stated the prices. We have conducted a survey, and since the overwhelming majority opted for it, that is, the sitting tenants wished to purchase their flats, then the HDB offered the flats for sale.