HDB SERVICE AND CONSERVANCY ARREARS (Cases brought to court for non-payment)

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HDB SERVICE AND CONSERVANCY ARREARS:

(Cases brought to court for non-payment): 2.

Mr Steve Chia Kiah Hong asked the Minister for National Development (a) how many HDB households have been brought to court for non-payment of service and conservancy arrears; (b) why are these residents not able to pay their service and

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conservancy charges regularly; and (c) whether bringing HDB residents to court is a good solution to the problem of non-payment of arrears.

The Minister of State for National Development (Mr Heng Chee How) (for the Minister for National Development): Mr Speaker, Sir, Town Councils depend largely on their service and conservancy (S&CC) collections to fund the proper maintenance and upkeep of HDB estates. It is therefore important for HDB residents to pay their S&CC promptly.

In 2005, Town Councils brought about 10,000 HDB households to the Subordinate Courts , and 3,400 households to the Small Claims Tribunal for non-payment of their S&CC arrears. This includes both PAP Town Councils as well as Opposition Town Councils.

HDB residents fall into S&CC arrears for various reasons. Some are in genuine financial hardship and are unable to pay their S&CC. However, there are also those who can afford to pay their S&CC but choose not to. For the former, Town Councils will assist them, eg, by allowing them to pay their arrears in instalments or by referring them to community organisations, grassroots organisations, Community Development Councils or other social service agencies for assistance. In some cases, Town Councils may also assist residents to find temporary or part-time jobs.

For residents who can afford to pay their S&CC but choose not to, then Town Councils will resort to Court action to recover their S&CC arrears only after they have exhausted all other measures and numerous reminders. Most of these residents would then either pay up or approach their Town Councils to work out mutually agreeable instalment plans upon receipt of the Court summons.

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Mr Steve Chia Kiah Hong (Non-Constituency Member): Sir, what is the success rate for the recovery of S&CC arrears after the HDB had successfully sued the residents in court?

Mr Heng Chee How: Mr Speaker, Sir, as I have explained, there are those who upon receiving the notices of summons to court would then approach the Town Councils to work out a mutually agreeable instalment plan. For the rest, their cases would be heard in court and the court would then make appropriate orders. They would then have to pay according to the court orders.

Mr Steve Chia Kiah Hong: Sir, I am asking for the figure. What is the percentage of successful recovery? Do we have a lot of people who manage to pay up after they have gone to court? Or are there a lot of people who still cannot pay after being charged in court? This means that they really have a problem paying their S&CC arrears because they do not have the money. Do we have a high percentage of people who can pay but do not want to pay? Or do we have a high percentage of the 10,000 who actually cannot afford to pay?

Mr Heng Chee How: Mr Speaker, Sir, first of all, in terms of the number of households who receive summonses to go to the Small Claims Tribunal and to the Subordinate Courts, we have to see this in context. As a percentage of the total number of HDB households, it is less than 2%. More than 98% have no difficulties paying their monthly S&CC. And of the remaining 2%, I would say that a significant percentage - I do not have the figure here with me - also make an effort to work something out mutually with the Town Councils upon receiving their notices. Of the remainder, they go to court and orders are made. I would say that most of them would then make payments.

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Mr Steve Chia Kiah Hong: Sir, what I want to clarify with the Minister of State is that the Minister does not have the figure of how many people could afford to make payment after being ordered by the court.

Mr Heng Chee How: Mr Speaker, Sir, if the Member is asking how many people did not fully pay up after being ordered by the court to make payment, I do not have the figure here today.