RETRENCHED AND UNEMPLOYED HOME-OWNERS (Interim financial assistance schemes)

Ms Braema Mathiaparanam asked the Minister for Community Development and Sports if there are any interim financial assistance schemes available to the recently retrenched or unemployed home-owners to sustain them for a longer period as they use up their savings.

The Minister for Community Development and Sports (Assoc. Prof. Dr Yaacob Ibrahim): Mr Speaker, Sir, Ms Braema will be pleased to know that we have schemes in place to help the retrenched or unemployed workers, particularly those from the lower income group.

One such scheme is the Interim Short-term Financial Assistance Scheme (IFAS) that provides temporary relief to tide the families over a difficult period, such as a crisis or unemployment. This scheme is currently administered by the Community Development Councils. Assistance is given for three months in the first instance, and may be renewed for another three months should the family circumstances justify further assistance. IFAS has also helped families in purchased flats who face temporary difficulties in paying for their current utilities and conservancy charges. There is also help given to schooling children for their school expenses. This is over and above what the schools provide. In financial year 2002, about 6,700 cases were approved for short-term assistance.

Apart from the above, the Citizens' Consultative Committees (CCCs) do offer assistance to residents who are facing financial hardship. Food rations, bursaries and, in some cases, direct financial assistance, have been given by CCCs to residents in need.

In addition, there are also several financial assistance measures to help HDB mortgagors who face financial hardship arising from a reduction or loss of income due to wage cuts, retrenchment or business failure. These include:

1. Conversion to a reduced repayment scheme, under which a mortgagor can pay between 50% and 75% of the normal loan instalment;

2. Deferment of payment of loan instalments for six months;

3. Extension of loan repayment period;

4. Inclusion of other working family members as joint owners; and

5. Payment of loan arrears by instalments.

Mortgagors who have difficulty servicing their mortgage loan can approach their HDB Branch Office for assistance.

The principle of self-help is an important one. Beneficiaries must make an effort to get on their feet again. Displaced workers have to re-orientate themselves to the new economic realities and take advantage of the help given to improve their situation through retraining and job placement services.

Ms Braema Mathiaparanam (Nominated Member): May I ask the Minister, in the light of the current unemployment situation, what would be the criteria that would be used under the Interim Short-term Financial Assistance Scheme when six months are up and there are still difficulties in securing a job?

Assoc. Prof. Dr Yaacob Ibrahim: On the ground, we have left the implementation of the IFAS to the CDCs. Not all CDCs will operate the scheme uniformly. There have been cases where those who have exceeded the six months are evaluated on a case-by-case basis. Our assurance to Singaporeans is that we will try and help them as far as possible within the means that we have but, at the same time, they should also take advantage of some of the schemes that we have already put in place for them to get a job or go for the training and retraining programmes.

So, the CDCs have, in fact, under the current circumstances, extended help to those who have exceeded the six months' criterion, based on the particular needs of the family. I do not have the figures, but we know that, on the ground, several CDCs have also implemented their own schemes to try and help some of these families.