OLDER HOUSING AND DEVELOPMENT BOARD ESTATES (Stepping up of Main Upgrading Programme)

[Mr Speaker in the Chair]

Dr S. Vasoo asked the Minister for National Development whether the Main Upgrading Programme can be further stepped up in the older Housing and Development Board estates.

The Minister for National Development (Mr Lim Hng Kiang): Mr Speaker, Sir, the Main Upgrading Programme has been gradually stepped up from six to 10 precincts a year. From 1995 onwards, it will be further stepped up to 15 precincts per year.

Too rapid an acceleration of the programme may result in the overheating of the building industry which, in turn, may lead to increased construction costs and lower standards of workmanship. Whether the programme can be further stepped up will thus depend on the industry's capacity to absorb the added projects.

It will also depend on whether the Government is able to generate s ufficient budgetary surplus to fund the programme. The Government will also have to consider how it apportions its budget for upgrading HDB flats vis-a-vis other public programmes like MRT lines, education and health.

Dr S. Vasoo (Tanjong Pagar GRC): In spite of the Minister's answer, are there any concrete plans for the older housing estates?

Mr Lim Hng Kiang: Sir, at 15 precincts per year the budget for the Main Upgrading Programme is almost $1 billion. As Members of the House will know, the Government has several very large projects in the pipeline and we have to ensure that the budget is fairly and rationally apportioned among the various projects. As Members know, the North-East sector MRT line will cost us $5 billion. The Public Works Department is also looking at the underground road system which may eventually cost us $4.8 billion. Last year, we set aside $1 billion for the Edusave fund. As Members also know, we have three big hospitals under construction: the Kandang Kerbau Hospital has a budget of $300 million; the Eastern General Hospital also has a budget of $300 million; and the Tan Tock Seng Hospital has a budget of $400 million, totalling another $1 billion. So there are several big projects and the HDB's upgrading programme, with a budget of $1 billion, is already a very large programme.