RESETTLEMENT OF SMALL BUSINESSMEN (Alternative premises)

Mr Ng Kah Ting asked the Minister for National Development (a) if he will give suitable alternative premises to small businessmen and those persons engaged in businesses like boat-building, warehousing and food manufacturing who are affected by resettlement and whether he will consider re-locating them to places close to their residence; and (b) whether he is aware that, in some cases, those affected are not given any alternative sites.

Mr Lee Yock Suan (for the Minister for National Development): Mr Speaker, Sir, businesses and industries affected by public development schemes are given resettlement benefits in accordance with the prevailing Resettlement policy. Eligible cases are allocated alternative office, shop, or industrial premises, depending on the type of activity. The HDB provides industrial premises for the relocation of a wide cross-section of industries affected by resettlement action. These industries include engineering, carpentry, motor-repairing and food manufacturing. However, it is not possible for the HDB to meet the requirements of some industries, a good example of which is boat-building. Boat-builders traditionally make small "sampans" or "tongkangs". As this is a declining trade and as boat-builders require scarce water-frontage land, the HDB is unable to provide alternative accommodation for them. Boat-builders affected by resettlement need to upgrade their activities to qualify for JTC industrial land or change their trades to those which can be conducted in HDB industrial estates.

Large warehouses are usually not eligible for alternative premises because most of them are acquired with vacant possession. Owners of such warehouses can tender for URA sales sites reserved for warehouse construction, if they require alternative premises. Small storage facilities acquired on encumbered basis will be allocated alternative storage premises in HDB industrial estates, if the owners can prove that they qualify for such alternative accommodation.

The relocation of affected businesses and industries depends on the urgency to clear the site and the supply of alternative accommodation. The Resettlement Department takes great pains to resettle businesses, wherever possible, near the residences of their owners. Where shopkeepers are concerned, there is less difficulty as most HDB shop premises have living quarters above the shop. In the case of industries and offices, it is not always possible to allocate premises near owners' homes owing to constraints in supply and the need for certain industries to be located in special areas.

Businesses affected by resettlement action must qualify under certain rules before they can be considered for alternative accommodation. Generally, businesses not eligible for such alternative accommodation fall under the following categories:-

(i) Cases where Business Registration Certificates do not bear the site address.

(ii) Cases registered with the Registrar of Businesses after the cut-off date and where other documentary evidence does not exist to support their claims.

(iii) Cases with Business Registration Certificates but which do not conduct business.

(iv) Cases occupying premises acquired with vacant possession.

Mr Ng Kah Ting: Mr Speaker, Sir, is the Minister of State aware that the term "boat-building" here implies that the boat-builders have upgraded themselves into building fibre-glass boats, like pleasure craft and small fishing craft? If that is the case, would the Minister seek the assistance of the agency, like JTC, in the relocation of such business which is affected by resettlement?

Mr Lee Yock Suan: Mr Speaker, Sir, the answer would be, yes in those cases. Where they have upgraded to that stage, I think they would normally qualify for JTC water-frontage land.

Mr Ho See Beng: Mr Speaker, Sir, I would like to ask the Minister of State whether he is aware that each time re- settlement takes place, the business houses or firms suffer a terrible loss. Although the HDB could provide them with alternative shop premises, they have to rent them from the HDB. Could I ask whether or not the HDB would allow these people to buy the HDB shop premises so that they would not only able to carry on their business but also own the shop which was the case before resettlement?

Mr Lee Yock Suan: Mr Speaker, Sir, the Member may be aware that where a resettlement case is given alternative rental premises, normally they qualify for rental concessions over a period of five years. In the first year, they pay 50% of what is known as the resettlement rental, which is 10% below the average market rate. In the second year they pay 60%; third year, 70%; and so on. So there is a five-year rental concession which is very significant in terms of the actual quantum.

As for the premises, they also get compensation for their premises. Let us say, in a squatter area, the Resettlement Department will measure the size of the facility and pay them according to the standard rates. As to whether the HDB will allow them to buy the premises, I believe the answer would depend on a case-by-case basis.