LOWER SHOP RENTALS UNDER RESETTLEMENT SCHEME

Mr S. Vasoo asked the Minister for National Development whether his Ministry will consider lowering the rentals of shops allocated under the resettlement scheme.

Mr Teh Cheang Wan: Shop rentals for resettlement cases are already lower than those paid by public applicants. The resettlement rental is based on 90% of the rental payable by the lowest successful tenderer. Resettled shopkeepers need pay only 50% of the resettlement rental in the first year. The rental is increased by 10% each year. The full resettlement rental is paid only from the 6th year.

Besides the lower rentals, concessions offered to HDB shopkeepers to help them tide over the current difficult conditions are also extended to resettlement cases. These include:

(a) a 15% rent rebate from Apr 85 to Mar 86 for shops allocated between 1.1.80 and 27.3.85.

(b) a 1-year deferment of the 3rd stage rental increase for shops affected by the 1983 Rental Increase Exercise.

(c) a 30% property tax rebate from Jul 85 to Dec 86.

The HDB also monitors the resettlement rentals for shops in its commercial complexes. Where the rentals are assessed to be too high,they are adjusted downward to reflect prevailing market conditions. Such adjustments have been made for the shops in Tanjong Katong Complex,Cheng Yan Court, Blk 55 Upper Changi Road and Pasir Panjang Wholesale Centre.

The rentals of shops allocated under the resettlement scheme are therefore already very reasonable. There is no need for the HDB to consider lowering the rentals further at present.