HDB WET MARKETS (Fire insurance cover for stallholders)

Dr Tan Boon Wan asked the Minister for National Development, in view of the recent spate of fires in Housing and Development Board (HDB) wet markets, whether he will ask the HDB to take up fire insurance to cover (i) the loss of the personal effects of the stallholders and (ii) the cost of putting up the temporary market.

Mr Noris Ong Chin Guan asked the Minister for National Development, in view of the recent fire incidents in wet markets, whether his Ministry has any plans to (i) make it a requirement for wet market stallholders to take up appropriate fire insurance policies, and (ii) provide fire-proof storage facilities inside or conveniently near the wet markets.

The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, can I take Question Nos. 4 and 5 together.

Mr Speaker: Yes.

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, there is no need for stall tenants to take up insurance to reinstate a market or hawker centre in the event of a fire. HDB or ENV, as landlord, will repair or rebuild the market or hawker centre, including the stall structures and fittings. HDB or ENV will also help affected stallholders secure alternative premises so they can continue to earn a living while the burnt market or hawker centre is being repaired or rebuilt.

However, advisors and their grassroots organisations may decide to build a temporary market, as has happened in several cases in the last 18 months. Hence, HDB and ENV are considering buying additional insurance to cover the cost of providing such temporary markets and hawker centres. We are looking into possible co-payment arrangements with grassroots organisations.

Sir, having said that, it would also be prudent for stallholders to take up appropriate insurance to cover loss of personal belongings in the event of a fire. While we will not make this a compulsory requirement, the Government would like to urge each and every stallholder to take up insurance coverage based on his individual circumstances, such as the value of his goods.

Sir, on the suggestion to provide fire-proof storage facilities inside or near wet markets, there may be implementation difficulties in view of the space constraints. All the markets are old markets except for one recent new market and these markets were built to old standards and, as most of us know, the space within the wet markets is already cramped. Nevertheless, Sir, HDB and ENV will improve the fire safety provisions in wet markets by enhancing the fire fighting facilities and encouraging stallholders to practise good housekeeping.

Dr Tan Boon Wan (Ang Mo Kio): Mr Speaker, Sir, I would like to ask the Senior Parliamentary Secretary whether he could ask HDB and ENV to consider paying 100% of the premium for a temporary market in view of co-sharing. The parties who are likely to co-share would be the CCC, town council, or, maybe, some other grassroots organisations. These organisations work very hard to raise money ---

Mr Speaker: Are you asking a question?

Dr Tan Boon Wan: Yes. Could the Ministry of the Environment and HDB consider paying 100% of the insurance premium?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, HDB and the Ministry of the Environment have considered this suggestion from the grassroots organisations because we have been in contact with them. We feel that the grassroots organisations should take ownership of the markets and the market stalls. HDB's and ENV's responsibilities really are to rebuild the burnt down market. In other words, we will reinstate the burnt down market. But that would take some time, maybe one year, and in some cases, 1 1/2 to 2 years. In the interim, the stallholders are not exactly out of the loop because HDB and ENV will help them relocate to vacant stalls in the vicinity. Any stall that is vacant, we will give them. So HDB and ENV will help them to this extent.

HDB and ENV have considered the appeal that they need to earn a living in situ, in other words, their customers are there, they need to be there. After a long process of consultation, we are considering buying additional insurance to build a temporary market, very close to the burnt down market for a short period of time. And that burnt down market will take some time to build. The cost of defraying that temporary market should rightly be borne by somebody other than the Government. But the Government will come in this round to provide a substantial co-funding and we want the grassroots organisations to take ownership of the market and provide the other part of the co-funding.

Mr Noris Ong Chin Guan (Nominated Member): Sir, could I ask the Senior Parliamentary Secretary, if it is difficult to get shareholders to purchase insurance for products lost through fire, whether it is possible for the town council to contract with the insurance company in order to obtain the best rate and cover and, maybe, incorporate the premium in the conservancy charges that are currently levied?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, the Government cannot speak on behalf of the town councils. This is for the town councils' chairmen and the councillors to decide.

Assoc. Prof. Toh See Kiat: Mr Speaker, Sir, can I ask the Senior Parliamentary Secretary, since the Ministry is not making insurance compulsory for the stallholders, whether the Ministry would embark on an education programme because too many stallholders feel that they have nothing to lose and therefore they do not need to insure, forgetting that they have loss of profits and business to face if they do not insure themselves?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, that was what the Government did when the first market in Eunos was burnt down. Many advisors, including myself, went to visit the market and advised the stallholders to take up fire insurance to insure their personal effects. And I am glad to report that the insurance coverage rate has gone up substantially. But we have not reached 100% and certainly not in all markets.

Dr Tan Boon Wan: Mr Speaker, Sir, the two fires in Ang Mo Kio GRC took place near festive seasons when the stalls were heavily stocked with the impending festive demand. I do not know if this had caused the fire. But it certainly must have made the fire worse. I would like to ask the Senior Parliamentary Secretary if he can ask HDB to look into ways to manage the storage of goods in the market and, secondly, if he can ask HDB to improve the design of the market to reduce the possibility of fire and the consequence should it occur?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, I think the Minister for the Environment, in his walkabout in the Clementi ward, has made an announcement of a market upgrading programme. The Minister will, at an appropriate time, elaborate on the plans to make markets more spacious, less fire hazard and definitely a better place to shop and eat.

Assoc. Prof. Toh See Kiat: Mr Speaker, Sir, does the Senior Parliamentary Secretary not have this opinion that because the HDB is the landlord of many of these hawker centres and the town councils are merely managing agents, they really have no authority or power to buy insurance, or do anything to co-pay for this insurance?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, we have checked with various insurance companies. The premium needed to insure for a temporary market is really quite low. It is something like between $1,000 and $2,000. So when the Government comes up with a substantial amount of co-payment, grassroots organisations should be able to afford the other half of the co-payment.

Mr R. Sinnakaruppan (Kreta Ayer-Tanglin): I would like to ask the Senior Parliamentary Secretary why HDB does not provide a fire sprinkler system, especially for single-storey wet markets?

Assoc. Prof. Koo Tsai Kee: Mr Speaker, Sir, these markets were designed in the 60s and 70s. We have not been building markets in the last 10 years and these were old design standards. In the new design standards, under the upgrading programme, we would certainly incorporate all these fire fighting features. But still within each market, we have made sure that there are enough facilities to fight small fires. We have provided enough fire extinguishers; we have organised civil defence campaigns; we have suggested to grassroots leaders to go round the market and advise them. In many markets, like in my market in Tiong Bahru, the committee hires a security guard to patrol the market day and night. So that is something the market committee and the grassroots organisations should do. HDB and ENV will provide assistance where it is needed.

Assoc. Prof. Toh See Kiat: Sir, the Senior Parliamentary Secretary misheard my question. My question was not whether the grassroots organisations should co-pay. My question was a follow-up of Mr Noris Ong's question: whether the Senior Parliamentary Secretary feels that the town councils do not have the mandate to do a co-payment and therefore they should be left out of the picture.

Assoc. Prof. Koo Tsai Kee: We are leaving the town councils out of the picture. Town councils are not part of the grassroots organisations. The town council is an agent whose job is to manage the common areas. We are saying that the co-payment would come from grassroots organisations other than the town councils.