PAP COMMUNITY FOUNDATION KINDERGARTENS AT POTONG PASIR CONSTITUENCY

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

Mr Chiam See Tong: To ask the Acting Minister for National Development whether the Housing and Development Board premises at Block 143, Potong Pasir Avenue 2 and at Blocks 211 and 213, Lorong 8, Toa Payoh, which are now occupied by the PAP Community Foundation kindergartens, can be taken over either by the Potong Pasir Town Council or by a church/charitable group to operate similar kindergartens there, if the PAP Community Foundation carries out its announced intention not to run the kindergartens in 1995.

Mr Low Thia Khiang (Hougang): Question No. 3, Sir.

Mr Lim Hng Kiang: Mr Speaker, Sir, HDB lets out Education Centres only to approved Foundations which are registered under section 29 of the Companies Act with a minimum paid-up capital of $5 million and are recommended by the Advisor to the Citizens' Consultative Committee. Town Councils do not have the mandate to run education centres. It would be possible for a church or charitable group to operate the education centres if it registers itself as a Foundation with the minimum paid-up capital.

Mr Low Thia Khiang: The question is: if the PAP Community Foundation (PCF) should withdraw, would the HDB allow a charitable organisation to run the education centre at the said premises which were used by the PCF?

Mr Lim Hng Kiang: If PCF gives up the premises and it is deemed that the premises ought to be used as an education centre, then it will be open to those approved foundations under the conditions which I have stipulated just now.

Mr Low Thia Khiang: Sir, does that mean that it will be by way of tender or by way of allocation by HDB?

Mr Lim Hng Kiang: As I have explained, there are several conditions: (1) it must be a charitable foundation; (2) it must be registered under section 29 of the Companies Act; (3) it must have a minimum paid-up capital; and (4) it must be recommended by the Advisor to the CCC.

Mr Low Thia Khiang: Does it mean that if an organisation fulfils the conditions mentioned by the Minister, HDB will give them automatic allocation?

Mr Lim Hng Kiang: Not necessarily, Mr Speaker. We have to find out how many education centres there are to provide enough places for the children. We do not just convert all the void decks into education centres for every applicant that comes around and qualifies. We must also have some planning norms on the number of education centres compared to the number of children in the area.

Mr Low Thia Khiang: If the premises become vacant, would the HDB consider tendering or letting out the premises to private organisations or charitable organisations?

Mr Lim Hng Kiang: Mr Speaker, Sir, I am very glad that Mr Low Thia Khiang now talks in the same language of tendering out at market rates. But HDB believes that education centres, being for education purposes, ought to be at a subsidised rate. Therefore, we would like to let them out to approved foundations.

Mr Low Thia Khiang: Besides the PCF, so far, has any approved organisation been allocated premises by the HDB to run education centres at void decks?

Mr Lim Hng Kiang: As far as I can recollect, none has applied.

Mr Low Thia Khiang: Can I take it from the Minister that the rules are designed solely for the PCF to have the premises?

Mr Lim Hng Kiang: The rules are rational and there is a basis for them. As I have explained, first, education centres are meant for education purposes. So HDB does this not at market rates. Unlike the Member, we do not believe in making profit out of education. Second, since it is not to be let out at market rates, we must find some way to allocate it. Since it is subsidised, it should be given to foundations which do this as part of their mission. Therefore, it must be an approved foundation. We want to have some certainty that the approved foundation can do the job well. It cannot be any fly-by-night foundation. So we stipulate a minimum paid-up capital of $5 million. At the same time, we want the Advisor to the CCC to understand all the facilities available in his constituency so that he can organise the facilities for his residents and constituents. So we also ask the Advisor to have a say in recommending the foundation for allocation of these premises.

Mr Low Thia Khiang: Would the Minister say, based on the criteria he has set, that so far PCF is the sole organisation which has qualified and it is justifiable to have the privileged allocation from HDB to enjoy such subsidies?

Mr Lim Hng Kiang: If no other charitable organisation, with these criteria, applies, how can I go and chase after them to apply? The only one that has applied is PCF and it is recommended by the Advisor to the CCC. So HDB allocates the premises.