RESETTLEMENT OF SHOPKEEPERS IN RURAL AREAS

Mr Heng Chiang Meng asked the Minister for National Development whether, in the resettlement of shopkeepers in rural areas, he will consider (i) resettling shopkeepers in an affected area as a single group to a specific location; (ii) giving priority to shopkeepers for shops in a new town if they are already residing in that new town; and (iii) giving monetary compensation to those who are eligible for allocation of shops on resettlement terms but do not wish to avail themselves of such benefits.

Mr Dhanabalan: Mr Deputy Speaker, Sir, it may not be possible to resettle shopkeepers in an affected area as a single group to a specific location because of the following constraints.

Firstly, the number of shops in an HDB estate is planned with due consideration to the number of dwelling units. This is to avoid a situation of having too many shops catering to a small clientele. Out of the total supply of shops in an HDB estate, only about 50% are set aside for shopkeepers affected by resettlement.

Secondly, there is usually an unbalanced spread of trades among resettlement shopkeepers. Traditional trades such as provision shops and departmental stores are always larger in numbers, whereas clinics and other specialized trades like launderettes, photo-processing shops, etc. are few. To relocate the resettlement shopkeepers en bloc to a specific area would deprive HDB residents of a wide variety of goods and services. The traditional traders will also suffer from fierce competition. This is not desirable for both the shopkeepers and the residents.

Thirdly, shopkeepers affected by resettlement are given priority for shops in a new town where their families are residing. However, such allocation is dependent upon the demand and supply situation, the urgency of development affecting the shopkeepers, competing demand from similar cases, and compatibility of trades.

My Ministry is currently reviewing the policy of allocation of shops to resettlement cases. The Member's suggestion about monetary compensation will be taken into account in this review.

Mr Ng Kah Ting (Punggol): Mr Deputy Speaker, Sir, could I ask of the Hon. Minister for National Development when he could disclose the results of the review.

Mr Dhanabalan: Mr Deputy Speaker, Sir, the review is in progress. I cannot inform Members of the House exactly when I can release the results of the review, but we will certainly try to do it as soon as possible.

Mr Heng Chiang Meng (Jalan Kayu): Sir, in view of the Minister's reply regarding priority to shopkeepers for shops in a new town if they are already residing in that new town, may I ask whether any sort of priority is given with respect to shopkeepers from other areas?

Mr Dhanabalan: Mr Deputy Speaker, Sir, I do not think I have quite got the point.

Mr Heng Chiang Meng: Mr Deputy Speaker, Sir, what I am asking is whether residents have priority over non-residents in respect of shops in the same town? Or are they treated exactly on the same basis as resettled shopkeepers regardless of where they reside?

Mr Dhanabalan: Sir, priority is only given to resettlement cases. Residents who want to tender for shops in their own area have to take their chances just like everybody else. There is no priority of any kind.

Mr Heng Chiang Meng: Mr Deputy Speaker, may I explain my question again? I am talking about resettled shopkeepers. If a resettled shopkeeper has been resettled to Town A, will he be given priority over another resettled shopkeeper who is not residing in Town A, or are they treated exactly on the same basis?

Mr Dhanabalan: Mr Deputy Speaker, Sir, from my answer, I said that special consideration will be given to resettlement cases where they are residing in a particular town. In other words, from the example that the Member has given, a resettled family in Town A will be given some sort of priority to get a shop in Town A and will not be treated on the same basis as a resettlement case living in Town B.

Mr Tang See Chim (Chua Chu Kang): Sir, the Minister, in answering the question, said that he was against resettling shopkeepers as a single group because these shopkeepers were mostly engaged in traditional trades. Is it not then that the Minister is imposing his judgment over market forces?

Mr Dhanabalan: If we want to really allow allocation to be determined by market forces, we should not give any priority at all. We should just allow them to tender together with the members of the public. But HDB has to exercise some judgment because, in any particular town centre or neighbourhood centre, there must be a certain distribution of shops to cater for the needs of the residents. That is why we do not, as I said, resettle shops en bloc into a particular area.

Mr Tang See Chim: Mr Deputy Speaker, Sir, would the Minister not agree that it was he in the first place who is resettling them and therefore, he is, in fact, disturbing market forces?

Mr Dhanabalan: Mr Deputy Speaker, Sir, I think the Member must decide whether he wants to allow market forces to have complete free play or to give special consideration to resettlement cases. We have always decided on a compromise in which we do not allow market forces to completely determine the allocation of shops. And we have taken a decision that resettlement cases should be given certain priority. The question is to what degree the priority should be given, and that is what I thought we are discussing. This is a question of judgment.

Mr Tang See Chim: Mr Deputy Speaker, that is precisely what we are asking - special consideration for resettlement cases.