SINGAPORE LAND AUTHORITY BILL

Order for Second Reading read.

The Minister for Law (Prof. S. Jayakumar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, earlier this year, the Government announced that four land departments of the Ministry of Law, namely, the Land Office, the Singapore Land Registry, the Survey Department and the Land Systems Support Unit would be merged to form a new statutory board on 1st June 2001 called the Singapore Land Authority. This Bill before the House provides for the establishment of this new statutory board.

Of these four land departments, the Land Office leases and alienates State land and acquires land for the State. It also maintains and manages the State land stock. The Land Registry registers transactions affecting land, issues and guarantees land titles and their tenure, and provides land-ownership and related information. The Survey Department provides cadastral survey plans of land and buildings, maintains and updates the cadastral maps of Singapore and provides geo-spatial information. The Land Systems Support Unit maintains a national land data hub and manages the infrastructure for sharing and distributing digitised land data among public agencies.

The objective of setting up the Singapore Land Authority is to streamline functions and to optimise land resources. It is better than having four separate departments carrying out different roles.

Sir, Singapore's land resources are limited. As our population increases, more of our island would be built up. We need to manage the land better and put in place mechanisms to intensify the use of land that is already built up, so as to ensure sufficient land to cater for our future needs. The SLA will not own the State land stock, as these lands will remain with the State. But SLA will be the land management agent for the State. In this role, it will make available land for residential, commercial, educational, institutional, social and other purposes having regard to the Concept Plan. It will manage and optimise land use. The SLA will work with the planning agencies as well as private sector bodies to identify new uses, develop rights concerning State land, optimise efficiencies of every transaction and allocate more land based on sound economic principles.

Sir, with the formation of the SLA, we will have a more flexible framework for implementing Government's land policies and plans to optimise land use. The SLA will also enable one regulatory body to provide authoritative, comprehensive and easily accessible land information and land management systems. Better land information and management will, in turn, enhance the State's ability to optimise land use, ensure appropriate returns on the land and maintain confidence in the land administration system.

The SLA is a necessary infrastructure to support the implementation of the forthcoming 2001 Concept Plan for land use. Master planning of land use will remain a core function under the URA. SLA will, however, complement the land use planning system by implementing more efficient land administration functions such as land alienation, leasing, land acquisition, management of tenancies and vacant lands. This way, it can support the central planning agencies and development authorities to better realise their land use plans. It will also help to better achieve a balance between economic development, flexibility for physical renewal of properties, social growth and cohesion and the protection of our nature reserves and parklands.

Sir, if I may now turn to the key aspects of the Bill, clause 5 of the Bill, read together with the First Schedule, provides the constitution of the Board of Directors of the Authority. The Minister for Law will appoint the Chairman and directors of the Board. The Chief Executive of the Authority will be appointed with the approval of the Minister, under clause 11.

Clause 6 sets out the mission and functions of the Authority. The Authority shall be charged with the responsibility of optimising scarce land resources, and developing a supporting land information infrastructure. Its broad functions will be to advise the Government on all land-related matters, including acquisition, allocation, tenures and disposal of State lands.

Clause 7 sets out the powers of the Authority. Among other things, the Authority will be empowered to form companies and participate in joint ventures.

Clause 8 sets out the power of the Authority to request for land related information.

Clauses 11 to 13 pertain to appointments of the Chief Executive, officers and employees of the Authority.

Clauses 14 to 21 are the financial provisions. The main source of funding for the Authority will be in the form of fees for services and other functions performed.

Clauses 22 to 28 provide for the transfer of property, assets, liabilities and employees to the Authority. Property, assets and liabilities, as may be determined by the Minister for Finance, will be transferred to the Authority. About 500 Ministry of Law employees, currently working in the four land departments, will be transferred to the SLA. They will be transferred on terms not less favourable than what they are enjoying immediately before the transfer.

Clauses 29 to 38 are general provisions. Clause 35 provides for the preservation of secrecy.

In closing, Sir, let me repeat that land is a scarce resource which has an important role in Singapore's social and economic development. It is vital therefore that we be proactive and innovative in optimising land. The new statutory board, the SLA, will be nimble and innovative to respond to changing needs for land in the overall context of Singapore's economic development in the 21st century.

Sir, I beg to move.

Question proposed.

Mr Simon S C Tay (Nominated Member): Sir, I am, generally, in support of the Bill. I think it is timely and welcome to bring the different functions under different Ministries under a central authority for efficiency and consistency, as a manager. And, of course, there must be a close linkage, as the Minister has emphasised, of the planning agencies and Concept Plan under the URA.

Sir, my point though relates mainly to one thing, and this is the power to act as an agent of Government for land acquisition. I believe the power is set out under clause 6(1)(e). I want to ask the Minister whether the new Authority will be able to consider policies for acquisition and compensation to private owners. Basically, my point of contention is whether it is now timely that our policy of compulsory acquisition should now be a policy of compulsory purchase. What I mean by this, Sir, is that in some countries, private owners have a right to say no to the government. And this, of course, is different in Singapore, because of our national need to develop public goods, highways, etc. I think, in this sense, where there is a national good at stake, compulsion should still be there. However, there is a question of price, and the cost imposed on private owners.

Sir, our policy today is that we pay a historically-based price. In the past, this has led to some loss for private owners. Clearly, today, the Government has strong financial reserves. And should we not then acquire compulsorily but at market rates? This is what I mean by compulsory purchase, rather than compulsory acquisition.

Sir, I am moved to ask this question because, in recent times, Government has increasingly given out ex-gratia payments where there are certain special circumstances. While this does justice to some individual cases, this may lead to untidiness, because why do some cases get ex-gratia payments, and why not others. Sir, I wonder whether it is now timely to relook at the policy as a whole.

Prof. Jayakumar: Sir, as I said in my Second Reading speech, this Bill is really to enable the formation of a new statutory board. Its provisions do not have anything to do with the substantive law or policy on land acquisition. It does not increase the powers presently contained under the law on land acquisition. And the proposed statutory board, the Singapore Land Authority, will not have any independent powers of land acquisition. The SLA will be an agent of the Government, but the power to acquire land continues to vest in the Government. In that sense, there is no real change in the passing of this new Bill concerning land acquisition. That being the case, I am not sure whether this would be the right time to have a detailed debate on land acquisition policy. But I would be happy to engage in a debate with the Member or other Members if they want to have a detailed exchange of views on land acquisition policy.

Sir, having said that, let me just make only some general comments. Whatever the position may be in other countries, land in Singapore is a special case, because of the scarcity of land. The Land Acquisition Act which has served us well in the past will continue to be needed. I believe the general approach in land acquisition has served us well. It will still be needed, because, as I have said in this House some years ago, it is not a position of us never having projects in the future in the public interest where we may need to acquire land.

The next point is on the compensation approach. We have reviewed the statutory date from time to time, and now the statutory date is 1995. Although that is the case, we have also provided for ex-gratia payments, and we have revised the ex-gratia payments from time to time, to make sure that any hardship which may be encountered by the compensation quantum, is reduced. I believe that the compensation package was announced in this House. This is not a static matter. We will continuously review the position under the Land Acquisition Act. In particular, we will review the total package under the ex-gratia scheme and see whether there is a need to increase the payments to be made under the ex-gratia scheme. And if need be, we will announce whatever changes that are necessary. Basically, we do take into account whatever hardships that may be caused. But at the end of the day, in Singapore, we cannot adopt the approach which may be prevalent in other countries where the authorities have abundant areas of land to take into account for developmental needs. Ours is a special case, but we are not unaware of the problems caused and we will see whatever we can do to reduce the hardships.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Prof. S. Jayakumar].

Bill considered in Committee; reported without amendment; read a Third time and passed.