CHYE HENG CAFETERIA (Arrears and penalty for non-payment of rent and conservancy charges)

Dr Lee Siew-Choh asked the Minister for National Development if he will make a statement concerning the arrears and penalty for non-payment of rent and conservancy charges by Chye Heng Cafeteria in Block 401, Hougang Avenue 10, amounting to $700,000.

Dr Lee Boon Yang (for the Minister for National Development): Mr Speaker, Sir, the eating house, Chye Heng Cafeteria, in Block 401 Hougang Avenue 10, was recovered by HDB because the owner owed HDB arrears in rent and service and conservancy charges. As this is the normal action taken in cases of arrears, there is no need to issue a statement.

Dr Lee Siew-Choh (Non-Constituency Member): How many months was this shop in arrears?

Dr Lee Boon Yang: Mr Speaker, Sir, the tenancy for this eating house commenced on 16th May 1985. The tenant began to owe HDB rent and service and conservancy charges arrears in August 1988. HDB served him a Notice to Quit in October 1988, two months after the tenant fell into arrears. Following that was a series of legal action and appeals which culminated in the recovery of the eating house on 10th August 1990.

Dr Lee Siew-Choh: Are tenants in rented HDB flats given the same treatment?

Dr Lee Boon Yang: Mr Speaker, Sir, tenants in HDB rental flats who are in arrears are also served with notices and are given ample time to pay up the arrears. If they find themselves in financial difficulties, we will be prepared to consider any appeal for instalment payment plan for the arrears.

The following Question stood in the name of Mr Chiam See Tong -