PRIVATISATION OF HUDC ESTATES (Progress)

[Mr Speaker in the Chair]

Mr Leong Horn Kee asked the Minister for National Development what is the progress of the current exercise to privatise the former Housing and Urban Development Company (HUDC) estates and what are the plans with regard to the privatisation of the HUDC estates at Lakeview and Shunfu.

The Minister for National Development (Mr Lim Hng Kiang): Mr Speaker, Sir, since the announcement of the conversion of HUDC leases to strata titles in May 1995, the pilot projects at Gillman Heights and Pine Grove Estates have been progressing according to schedule.

Residents in these two designated estates conducted their voting for the privatisation in July and August. The results showed that both estates have exceeded the minimum of 75% support which is required: 93% in Gillman Heights and 79% in Pine Grove.

HDB is now executing the processes required for the privatisation of these two estates. As these are pilot projects, HDB needs some time to establish the working procedures with the various agencies involved in the processes. HDB expects that the date these two estates will be legally transformed to private estates to be in August 1996.

In response to the keen interest by some HUDC residents to privatise their estates, HDB has decided to bring forward additional HUDC estates for the privatisation exercise in 1996. They will be split into two batches. The first batch for 1996 will be Jurong East, Hougang South, Lakeview and Farrer Court Estates. The second batch for 1996 will be announced in the middle of next year.

With regard to the privatisation of Shunfu Estate, HDB will take note of the interest expressed by the residents there when it designates other HUDC estates for the privatisation exercise in the subsequent batches.

Mr Leong Horn Kee (Thomson GRC): Sir, may I ask the Minister whether he has any idea as to when Shunfu estate will be privatised?

Mr Lim Hng Kiang: Mr Speaker, Sir, in selecting the various estates for privatisation, HDB considers the following three criteria. (1) the age of the estate; (2) the support expressed by the residents through their Advisor; and (3) a mix of Phase I and II as well as Phase III and IV estates so as to even out the workload. For Shunfu estate, I believe it is under Phase III and so it will be among the earlier batches.

Mr Leong Horn Kee: After the announcement of the privatisation exercise, those residents in Phase III and IV HUDC estates who applied for HDB flats have been asked to take out their applications from the HDB flat registration list. Could I ask the Minister whether he could reconsider this policy?

Mr Lim Hng Kiang: Mr Speaker, Sir, as I have explained in this House before, residents in Phase III and IV HUDC estates were in an anomalous situation before the announcement of this change in policy. Before this change, they were allowed to apply for HDB flats without having to pay a levy, whereas HDB flat owners have to do so. At the same time, they did not have to wait for a 30-month period, whereas Phase I and II HUDC flat owners have to comply with it. To change the situation, the HDB could decide either to put them together with the HDB flat owners, in which case we ought to impose a levy, or at the same time classify them together with the Phase I and II HUDC flat owners, in which case we have to impose a 30-month debarment period. HDB decided that, for the purposes of application of new HDB flats, it would treat them the same as those in Phase I and II HUDC estates, ie, impose a 30-month debarment period.