INDUSTRIAL AND COMMERCIAL LEASES (Rental rebates)

Mr S. Chandra Das asked the Minister for National Development (a) whether he proposes to extend the 15% rental rebate for industrial and commercial leases which was granted for one year, and, if so, for how long; and (b) whether further reductions are being considered.

Mrs Yu-Foo Yee Shoon asked the Minister for National Development whether the Housing and Development Board will (i) extend the rental rebate for HDB shops and (ii) increase the rebate of 15% to 30%, depending on the location of shops, for the year 1986 to 1987.

The Minister for National Development (Mr Teh Cheang Wan): Mr Speaker, Sir, since Questions 1 and 2 from the Members for Chong Boon and Yuhua are similar, I will answer both questions together. The answers are:

(a) The HDB will extend by another 21 months, up to 31st December 1987, the 15% rental rebate for HDB industrial and commercial premises.

(b) The present rental rebate of 15% plus the 50% property rebate that has just been announced represent a very substantial reduction in rentals for tenants of HDB industrial and commercial premises. With the rebates, the rentals of these premises are generally lower than the current market rentals payable by new tenants of HDB premises. There is therefore no plan at present for the rental rebate to be increased further.

Mr J.B. Jeyaretnam (Anson): May I ask the Minister why is it necessary to relate rentals all the time to rentals in the private sector?

Mr Teh Cheang Wan: Mr Speaker, Sir, I did not relate the rentals to the private sector. I said "new HDB tenants", not the private sector.