MASS RAPID TRANSIT SYSTEM (Funds for construction)

Mr Chiam See Tong asked the Minister for Communications and Information whether the Government proposes to fund the construction of the Mass Rapid Transit system out of the sale of land; and, if not, if he will state which sources of funds will be used.

The Minister for Communications and Information (Dr Yeo Ning Hong): Mr Speaker, Sir, the Government has been funding the construction of the MRT in accordance with section 17 of the Mass Rapid Transit Corporation Act enacted in 1983. I will read from the Act:

'For the purpose of enabling the Corporation to carry out its function of constructing and equipping the Mass Rapid Transit System, the Minister for Finance shall, from time to time, provide funds, subject to such conditions as he may impose, to the Corporation out of moneys provided by Parliament.'

Sir, this practice is the same for all Government projects, whether they be for the construction of roads, schools or hospitals. Moneys for development projects come from the Development Fund and allocations from the Development Fund are presented in the Development Estimates each year presented in Parliament during the Budget debate.

Mr Chiam See Tong: Is the Minister saying that the first intention of the Government to sell parcels of land at Marina South to construct the MRT has been shelved and it is now relying solely on money from taxpayers?

Dr Yeo Ning Hong: Sir, last year, the Member for Potong Pasir asked the same question and the Second Deputy Prime Minister (he was the Minister for Communications in charge of the MRT when it was first commenced) explained to him and this has been recorded in the Hansard, Vol 45, column 858 dated 18th March 1985. The Second Deputy Prime Minister explained that the idea of selling Marina land for the MRT was a notional suggestion. There was no decision taken to link the direct sale of Marina South land with the progress and building of the MRT. It is like saying that the building of schools will be paid for in due course by the fact that children will be better educated and therefore better able to make a contribution to society.

Mr Chiam See Tong: Mr Speaker, Sir, to compare the construction of the MRT, which requires a tremendous amount of money with building schools, I think they are two different things.

Mr Speaker: Can I have your supplementary question?

Mr Chiam See Tong: Sir, the Minister is saying that the whole amount of money is now coming from the taxpayers. Is that correct? There are no other sources of money to finance the construction of the MRT.

Mr Speaker: That is not a supplementary question.