TENDER PRICES FOR HDB CONTRACTORS

Mr S. Vasoo asked the Minister for National Development whether the tender prices for Housing and Development Board contracts are lower now; and, if so, whether the HDB will consider passing the benefits to future flat purchasers.

Mr Teh Cheang Wan: Mr Speaker, Sir, while prices of building materials have generally fallen in the last two years, tenders awarded by the HDB to its building contractors have remained relatively constant. This is due mainly to the introduction of improved building features and better finishes to HDB flats, such as the use of better quality aluminium sliding windows, replacement of mild steel casement windows in kitchens with aluminium windows, extension of glazed wall tiles to ceiling height, etc. In addition, resettlement cost has increased by 30% since March 1985. This adds to the development cost of HDB flats. At present selling prices, HDB flats are already subsidized by Government. Any reduction in the selling prices without a corresponding fall in the building cost will mean a further increase in the level of Government subsidy on public housing. This is not possible at this time when Government is lowering taxes and reducing its revenue collection.

Mr Chiam See Tong (Potong Pasir): Can the Minister please cite the three awards for HDB tender for construction of flats in 1984, or any figures for last year to show whether the prices are going up or down?

Mr Teh Cheang Wan: Mr Speaker, Sir, I have said just now that the awards tendered by HDB have remained more or less constant.