HDB RENTAL FLATS (Imposition of age requirement)

Mr J.B. Jeyaretnam asked the Minister for National Development if he will explain the rationale for the ruling to exclude persons under the age of 29 from applying for rented accommodation in Housing and Development Board apartments.

Mr Teh Cheang Wan: Mr Speaker, Sir, it is the objective of the Government to achieve a 100% home ownership society by 1999. Various incentives have therefore been introduced to assist the lower-income families to buy their flats. These include a lower downpayment of 5%, a larger mortgage loan of up to 95% of the selling price, a longer repayment period of 25 years and the use of easier repayment schemes.

The 5% downpayment is only $1,700 for a 3-room flat and $2,100 for a 4-room simplified flat in the New Town Zone. An applicant who earns only $500 a month would have accumulated enough CPF to pay the downpayment for a 3-room flat within a year, or 15 months for a 4-room simplified flat. The period will be even shorter if his wife is also working and contributing to CPF. There is therefore no difficulty for anyone to buy an HDB flat. With the completion of more HDB flats, an applicant if he is not choosy can get his flat very quickly.

The age requirement of 29 years is imposed to discourage young people from entrenching themselves in rental flats. With a working life of another 20 to 30 years and assistance from the Government, these young people can easily save enough money to become home owners.

Mr J.B. Jeyaretnam (Anson): Mr Speaker, Sir, does the Minister realize that, parrot-wise, he is repeating the same thing again and again and again. May I ask him why is it necessary to cut down on the choice that citizens of this country have. By what authority does the HDB take it upon itself to cut down the choice that our citizens have? Does the Ministry and the HDB realize that there are people, whatever the Ministry might think, who simply cannot afford to buy HDB flats?

Does the Minister realize also that this is discriminatory under the Constitution? What gives the HDB the power to flout the Constitution? What gives the HDB the power to cut down on the choice that our citizens have?

Mr Teh Cheang Wan: Mr Speaker, Sir, I do not think the HDB has flouted the Constitution. The Member for Anson has a habit of not listening to the answer. I said in the first sentence, "It is the objective of the Government to achieve a 100% home ownership society by 1999." If we allow the young people to rent flats, then we defeat our objective. That is the reason why the Government has introduced various measures to help the people to own a home. Therefore, the young people, as I have said earlier, who have another 20, 30 or even more years of working life, should be encouraged to own a home, and not to entrench themselves in rental flats.

Mr Jeyaretnam: May I ask the Minister why should the Government force on our citizens 100% home ownership? That is the whole principle of it. You give your citizens a choice. You encourage them. But you do not force them. There is a whole world of difference between encouragement and forced persuasion. Is the Minister saying that the only thing that this Government knows is compulsion of our citizens?

Mr Teh Cheang Wan: Mr Speaker, Sir, I do not think HDB is forcing anybody. The point is that young people have a long working life before them, and the HDB is encouraging them to become home owners. And if these people insist on becoming tenants, they can wait and apply when they reach the age of 29 years.

Mr Jeyaretnam: Does the Minister realize that his last answer is too funny for words?