HOUSING AND DEVELOPMENT BOARD (Policy on letting out void deck space as education centres)

Mr Low Thia Khiang asked the Minister for National Development if he will explain (i) the rationale of the policy of the Housing and Development Board to let out void deck space for use as education centres only to foundations which have a minimum paid-up capital of $5 million to provide educational services and (ii) on what basis the HDB decided that there is no lack of educational and community service facilities in Hougang Constituency.

Mr Lim Hng Kiang (for the Minister for National Development): Mr Speaker, Sir, at the sitting of the House on 18th March 1992, the then Minister for National Development, Mr S. Dhanabalan, explained HDB's policy on the use of void deck space. As far as possible, void decks will be kept open so that residents can have space for social interaction as well as for other practical purposes. HDB will, however, allow a limited portion of the void deck space in each estate to be converted for use by organisations providing educational and social services needed either by the residents in the area or the community at large.

As HDB wants to minimize the conversion of void deck space, HDB has set strict criteria for its allocation. Void deck space for the setting up of education centres is allocated only to approved organisations which are registered under section 29(1) of the Companies Act, and which have a paid-up capital of $5 million or more.

Broadly speaking, to be registered under section 29(1) of the Companies Act, an organisation must be set up for charitable or related objectives which are in the general or national public interest, have the financial means to carry out its objectives and be non-profit making. The paid-up capital requirement of $5 million is used by HDB as the criterion to judge whether or not an organisation registered under section 29(1) of the Companies Act has the financial means to provide on a continuing basis educational services of the required standards.

It is a matter of judgement whether the paid-up capital requirement should be set at $5 million or some other figure. The Government is of the view that the paid-up capital requirement of $5 million is adequate but not excessive.

Organisations which are not registered under section 29(1) of the Companies Act or which do not satisfy the minimum paid-up capital can still provide educational services in HDB estates. They can rent or purchase commercial space at market rates. Planning approval will have to be sought for change of use of such premises.

Let me now turn to the specific question of the educational and community service facilities in Hougang Constituency. Hougang Constituency is a fairly mature estate with most of the flats built before 1989. In tandem with the development of the estate, a wide range of social and community-oriented facilities have been provided, not only within the constituency, but also in Hougang New Town as a whole, of which Hougang Constituency is but a part. In the constituency itself, there is a community centre, primary school and junior college. In Hougang New Town as a whole, there are nine primary schools, seven secondary schools, a polyclinic, a sports complex and a home for the aged.

In addition, HDB has allocated void deck space in Hougang Constituency for various voluntary welfare and grassroots organisations whose activities are supported by the Ministry of Community Development or other competent authorities. These community-oriented facilities include two childcare centres, one Senior Citizens' Club, two education centres, one community hall, one police post and five Residents' Committee centres. There is, therefore, no lack of educational and community service facilities in Hougang Constituency.

Mr Low Thia Khiang: Sir, is there a limit to the number of centres which a foundation can set up with the $5 million minimum paid-up capital requirement?

Mr Lim Hng Kiang: There is no limit.

Mr Low Thia Khiang: I believe that the PAP Community Foundation, which sets up hundreds of education centres in Singapore, would need to spread the capital over all its education centres. Does it not mean that it is not necessary to run one centre with a $5 million paid-up capital?

Mr Lim Hng Kiang: The PAP Community Foundation has many centres and the $5 million paid-up capital more than satisfies the requirement to support these centres.

Mr Low Thia Khiang: Sir, does the Minister agree that the scope of service and the number of centres provided by an organisation should correspond with its capital capacity rather than requiring the organisation to have a minimum paid-up capital of $5 million?

Mr Lim Hng Kiang: The minimum paid-up capital is required to establish that the foundation is a bona fide foundation and able to sustain itself over the long term.

Mr Low Thia Khiang: Sir, would the Minister consider working out a scale of paid-up capital required by a foundation intending to provide educational service based on the number of centres rather than a lump sum of $5 million?

Mr Lim Hng Kiang: The minimum paid-up capital is $5 million. If you want us to establish a higher paid-up capital for other centres, we will consider the suggestion.

Mr Low Thia Khiang: Sir, does the Minister agree that the HDB's policy of requiring a minimum paid-up capital of $5 million, is designed to deny the Opposition from renting HDB premises at a nominal rate to set up educational services?

Mr Lim Hng Kiang: The criteria for any organisation registered under section 29(1) to set up education centres are not aimed at any political party - PAP or the Opposition. Any organisation that satisfies these criteria and has the objective of serving the people through the setting up of education centres and meets the requirement of $5 million would be free to apply to HDB for consideration of setting up education centres at concessionary rates.

Mr Low Thia Khiang: Sir, my question is whether the Minister of State will consider the requirement of paid-up capital by centres rather than a lump sum of $5 million because, obviously, it does not need the $5 million.

Mr Lim Hng Kiang: As I have explained earlier, $5 million is to establish the standing of the foundation.

Mr Low Thia Khiang: Sir, does the Minister agree that the conclusion arrived at by the HDB, as explained by the Minister of State just now, that there are sufficient educational and community-oriented services in Hougang Constituency is arbitrary? And is the Minister aware that there are a number of students who wish to enrol in the education centres in Hougang but they could not get in?

Mr Lim Hng Kiang: If that is the case, then other organisations can well come in and set up such educational services for those children in Hougang.

Mr Low Thia Khiang: My question is whether it is arbitrary for HDB to decide whether or not the facilities are enough.

Mr Lim Hng Kiang: HDB does not decide on the number of applicants for the facilities. HDB receives the applications and if they establish that the organisations are bona fide and the requirements are genuine and meet the needs of the residents, HDB will approve the applications. HDB does not, as a planning norm, determine how many educational places must be provided in each constituency or each new town.

Mr Low Thia Khiang: Sir, is the Minister of State aware that I wrote to the HDB requesting for community or rented premises to be set up, but the reply by the HDB was that there were sufficient premises and facilities in Hougang.

Mr Lim Hng Kiang: If the Member feels that there are insufficient kindergarten places in his constituency, he can always set up a foundation and establish an education centre. If you meet the criteria, you get concession rates. If you do not meet the criteria, you rent the premises at market rate. That is what the other education centres in Singapore are doing.

Mr Low Thia Khiang: If the Minister of State agrees to reduce the paid-up capital requirement, then I will try.

Mr Chiam See Tong: I just want to take up one remark made by the Minister.

Mr Speaker: Are you asking a question?

Mr Chiam See Tong: Yes. If $5 million is sufficient to sustain itself on a long-term basis, it will appear that the PAP Community Foundation, with its $5 million paid-up capital, has got not enough funds because it has got grants from the Government.

Mr Lim Hng Kiang: That is not true. If you have got any specific questions on the PCF, please address to the appropriate authority.