NORMANTON PARK HOUSING ESTATE (Resale policy)

Mr Chiam See Tong: To ask the First Deputy Prime Minister and Minister for Defence why purchasers of condominium units at Normanton Park, Ayer Rajah Road, after residing there for seven years, are not allowed to sell their units to non-Singapore Armed Forces (SAF) officers when no purchasers can be found among SAF officers at open market prices for those units.

Mr J.B. Jeyaretnam (Anson): Question No. 3, Sir, on behalf of Mr Chiam.

BG Lee Hsien Loong (for the First Deputy Prime Minister and Minister for Defence): Mr Speaker, Sir, Normanton Park Housing Estate was built in 1977 for sale to SAF officers with the following objectives:

Firstly, to attract SAF officers to sign on as regulars.

Secondly, to retain good officers who have decided to make a career of the SAF.

Thirdly, to enable SAF officers to own flats at lower prices.

There were also the additional benefits when SAF personnel live together, of helping to build up the sense of identity, allowing quick mobilization of manpower when needed, and providing for the general welfare of families, especially when the officers are away.

These objectives of building Normanton Park still apply. To further them, the lease for each of the Normanton Park units contains a covenant that seven years after purchase, the owner may, with the prior written consent of the lessor, sell the property, but only to an approved buyer. In order to preserve the SAF character of Normanton Park as long as possible, the Armed Forces Council has decided that approved buyers should be serving SAF officers.

Initial, and no doubt resale, prices of the flats have taken this restriction into account. The point-block units were sold in 1977 at prices ranging from $36,000 to $39,000. Over the last 10 months, 42 of these units have been resold by the original owners at prices ranging from $128,000 to $180,000. A further 11 units are in the process of sale. It would therefore appear that owners have been able to find buyers for Normanton Park flats at acceptable prices.

Mr Jeyaretnam: Mr Speaker, Sir, a supplementary question for the Minister of State.

As I understand him, when these flats were originally sold to these officers, they were told that the flats could only be sold again to MINDEF approved purchasers. Would the Minister of State appreciate that that is much wider than the restriction which I am told has now been brought in - that only SAF officers may buy them?

Mr Speaker: What is your supplementary question, Mr Jeyaretnam?

Mr Jeyaretnam: Does the Ministry realize that they are changing their contract with the officers?

BG Lee Hsien Loong: Sir, the Ministry does not change contracts which it has entered into. In clause 1(g) of the lease of the sale of the flats, there is a covenant. The covenant states:

'Without prejudice to clause 1(e) [which is the bond period] not without the prior consent of the lessor in writing to assign, demise, underlet, divest, part with, dispose of or otherwise deal with (except by will) the title, estate, interest, right to or in the flat, or share or part with the possession, occupation of the flat, or any part thereof.'

Therefore, the rules which MINDEF has made are perfectly within the meaning of this clause.

Mr Jeyaretnam: Does the Minister of State perhaps not realize the import of my question? Does he not realize that the clause in the covenant allows sale to anybody, not just SAF officers, provided the approval of MINDEF is obtained? And does he also not realize that that approval cannot be unreasonably withheld?

BG Lee Hsien Loong: Mr Speaker, Sir, clause 1(g) stands. I am not a lawyer. But I am advised by legal officers that what MINDEF has done is strictly according to the law.