Parliamentary Debates

22 May 2007

En Bloc Property Sale Committees
(Measures to ensure transparency)

2. Mr Chiam See Tong asked the Deputy Prime Minister and Minister for Law what measures will the Government take to ensure that en bloc property sale committees exercise transparency, act fairly and do not abuse its powers.

The Senior Minister of State for Law (Assoc. Prof. Ho Peng Kee) (for the Deputy Prime Minister and Minister for Law): Sir, all en bloc sales without 100% owners' consent must be approved by the Strata Titles Board. Advance notice of an application for en bloc sale must be sent to all owners. An owner who does not agree to the en bloc sale can file an objection with the Board. The Board takes all objections seriously and examines them very carefully. For example, if there is an objection on the method of distribution of the sale proceeds, it will look into how the method of distribution was determined. As another example, if an objection is raised on the sale being by private negotiation, the Board may look into the reasons why it was not done via a tender exercise.

Hence, I would like to assure Mr Chiam that the Strata Titles Board is not a mere rubber stamp which approves an en bloc sale application just because the required 80% or 90% majority has agreed to the sale. Indeed, the Board will dismiss the application if it is satisfied that the transaction was not done in good faith and in an aboveboard manner. Thus, the Board had, on two occasions, dismissed the applications because the procedures set out in the legislation were not complied with.

Sir, we are always reviewing the procedures to see how they can be improved. For example, in 2004, as a result of feedback received, we improved the process by requiring regular updates on the number of owners who had executed the Collective Sales Agreement to be put up in the development in the four languages and also requiring that the CSA be signed by the required majority within 12 months, so that all owners, whether or not they have signed the CSA, will not be kept in suspense for an indefinite period.

Nevertheless, MinLaw believes that there is room for some tightening of the en bloc sale procedures. This is why, during the recent Committee of Supply debate, the Minister for Law announced that a study team reviewing our en bloc sale legislation had made some important recommendations, for which MinLaw would put out a paper for public consultation. One of the proposed changes is that the setting up of an en bloc sale committee must be done at a general meeting convened by the management corporation. Not only will this make for better accountability, it will also serve as notice to all owners of a possible en bloc sale initiative being started.

The public consultation closed recently on 12th May. We received quite a lot of feedback. We are now evaluating the feedback received. I expect that many useful points will be incorporated into the final amendment Bill.

Mr Chiam See Tong (Potong Pasir): Sir, the sale committee is perhaps the most important component in the en bloc sale process. It appoints the agent to sell the whole development and it also appoints the solicitors, and I think it has got a duty to appoint the valuers. Therefore, it must be properly appointed. Usually, an en bloc sale involves millions of dollars, and I think their responsibility is very great. So, I hope the Minister will incorporate some statutory measures to make sure that the sale committee is properly appointed.

Assoc. Prof. Ho Peng Kee: Sir, as I have said in my main reply, Mr Chiam will be very pleased to note that this is the key recommendation of the proposed consultation. Proposal No. 3 says that the sale committee must be properly constituted at a general meeting where members will be informed, notice served, and they come and elect the sale committee. Indeed, another suggestion that we are looking at is that the minutes of the sale committee will be posted on the notice board so that all owners, whether majority or minority, will be kept aufait with the discussions.

Mr Chiam See Tong: Sir, I wonder if the Minister can make it possible for some of the flat owners to exchange one for one; in other words, their old property to exchange for a new one, when the new ones are developed, in the same place. Usually, for the older citizens who stay in a place for a long time, they would like to remain there. But, of course, that is not possible unless they exchange one for one. I think they also do not like the hassle of finding alternative accommodation. I wonder if the Minister can incorporate this provision into the law.

Assoc. Prof. Ho Peng Kee: Sir, this is one area where we should leave it to the owners to decide, because now owners may want a replacement flat. Different people have different considerations. But I know on the ground that owners who want a replacement, in fact, negotiate with the developers who are buying the property. This has happened in some of the other developments as well. So, let the owners negotiate with the developers and get a deal that suits them.

Electronic Road Pricing
(Increase in rates)

9. Mr Chiam See Tong asked the Minister for Transport, in view of the recent announcement on the increase in Electronic Road Pricing rates, (a) how much does the Ministry expect to collect in a year; (b) why is the price increase necessary; and (c) what is the money collected to be used for.

The Minister of State for Transport (Mrs Lim Hwee Hua) (for the Minister for Transport): Mr Speaker, Sir, the objective of the Electronic Road Pricing (ERP) system is to keep our roads free-flowing. It does so by using price to spread traffic to other times and to alternative routes that are not as congested and in this way helps to optimise the utilisation of our entire road network. To fully realise the benefits of the ERP system, the rates are set such that traffic on our roads and expressways flows smoothly, neither overly congested nor under-utilised, and allowing for maximum traffic to be carried.

As traffic conditions change over time, ERP rates will have to be reviewed and adjusted from time to time. Hence, the LTA carries out reviews of the traffic conditions quarterly, and the ERP rates are adjusted accordingly. Reviews are also conducted during the June and December school holidays when ERP rates are adjusted downwards in recognition of the lower traffic volumes during the school holidays. LTA's recent ERP quarterly review showed that the city-bound CTE speeds have dropped below the threshold of 45 kilometres per hour. Hence, the ERP rates have to be adjusted upwards to bring about the optimal usage of the CTE throughout the day.

As for ERP revenue, Government collected $91 million in FY 2006. The revenue collected goes into the Government's Consolidated Fund, which funds the various Government programmes for the benefit of all Singaporeans.

Mr Chiam See Tong: Sir, at one debate in this House, I pointed out that although the price had increased at the Braddell Road gantry, the congestion was still present. I wonder whether the Government is willing to hold a feasibility study before it increases the fee at a gantry, to ensure that the fee increase will, in fact, solve the problem, which is what is intended.

Mrs Lim Hwee Hua: Sir, allow me to explain how the ERP pricing is done and the whole philosophy behind it. First of all, let me state that without the ERP system, the CTE would today be in gridlock. If we were to take the case of the most congested period of the north bound CTE, for example, for the period from 6.30 pm to 7.30 pm, the traffic speeds have actually improved from, before the implementation of the ERP, about 26 kilometres per hour to 48 kilometres per hour. Secondly, motorists, by and large, consider the entire journey experience in deciding whether to use a particular route. Hence, to determine if the ERP charge at the gantry on the north bound CTE needs adjustment, we measure the average speed over the distance from the Bukit Timah entry to the Ang Mo Kio Avenue 1 exit. In this case, the existing ERP gantry is somewhere mid-stream between the start and the end of this stretch. It is possible that on part of this stretch, the speeds may well fall below 45 kilometres per hour from time to time. However, over the entire stretch, the average speeds would be above 45 kilometres per hour.

Maid Levy
(Review)

10. Mr Chiam See Tong asked the Minister for Manpower if he will review the lowered maid levy issue and implement a new set of maid levies to reflect the economic status of employers and take into account the needs of their children and the elderly so that those who can afford to do so will pay more and those who are less well-off will pay less or are even exempted from paying the levy.

The Senior Parliamentary Secretary to the Minister for Manpower (Mr Hawazi Daipi) (for the Minister for Manpower): Sir, the foreign domestic worker levy has been reduced over the past few years from $345 in 2003 to $295 in 2005. In addition, a concessionary levy of $200 is already in place for employers who have young children or elderly members, and later this year, for those who have disabled in their family. As previously announced, both the normal and concessionary levy will also be further reduced by $30, with effect from 1st July 2007, to $265 and $170 respectively.

Mr Chiam See Tong: Sir, our present system of allocation of maids favours the rich. Some rich people have as many as five maids. But some Singaporeans who are poor and who are really in need of maids cannot qualify even for one maid. So maybe the Government would like to change the system where it is more equitable to give those who are really in need of the maids a chance to have a maid.

Mr Hawazi Daipi: Sir, we should not look at employing a foreign domestic worker as an entitlement. If Mr Chiam's concern is that this household who cannot afford a foreign domestic worker because of the levy should be assisted, then I think we had to be very prudent in our approach. It would not be desirable for foreign domestic workers to be hired by low-level families who have problems meeting ends meet. We have to be careful in managing the number and, at the same time, the welfare of foreign domestic workers because when they are here, we want them to be well taken care of and well protected, and they should not be exposed unduly to the possibility of not being paid by the low income family. I think we have to be very prudent in our approach in employing foreign domestic worker.

Secondly, hiring foreign domestic workers should not be the only solution for our households. There are already assistance schemes administered by the Ministry of Community Development, Youth and Sports. There are schemes and programmes run by voluntary welfare organisations, in conjunction with the Ministry of Community Development, Youth and Sports, to help children and the elderly, or the households who need assistance and who may not be able to afford hiring a maid.

Mr Chiam See Tong: Sir, surely the Government can build a more equitable system. For those who can afford, I think it is fair to make them pay, even two or three times. They can afford it. While those who are really in need, I think they should be given a maid, especially the husband and wife, who are earning a living, and they have children at home, and also there are elderly people to be taken care of sometimes. So can the Government not think of a system which is equitable - take from the rich and give it to the poor?

Mr Hawazi Daipi: Sir, we have to be fair to the foreign domestic workers too and we must make sure that they are well taken care of while working in Singapore and they are paid on time while working in the household. I do not think it is an issue of being equitable. For the different households and some of whom may need extra assistance, they are already paying concessionary levy and, as I have mentioned earlier, the amount of concessionary levy has been reduced over the years. This should be able to help those who may need some extra assistance from the Ministry of Manpower.

Mr Speaker: One final question, Mr Chiam.

Mr Chiam See Tong: I think we are not talking about the payment to the maid. We are talking about the maid levy. So those people who can pay the maid levy should be made to pay. And those poor people who cannot afford, I think they should be given some concession because they have to make a living for themselves, their family and their elderly parents. That is the point of my question. Is it not possible whereby the wealthy should be made to pay for the less wealthy?

Mr Hawazi Daipi: Sir, the levy is not a tax system. The levy is meant to regulate the number of foreign domestic workers in Singapore. And we have to have a levy system to ensure that only those who can afford it would be able to employ a foreign domestic worker. For those who may need some assistance but cannot afford to pay the salary of the foreign domestic worker and/or the levy, then they should find other assistance schemes which are already made available by our Government agencies. We should not treat employing a foreign domestic worker as the only solution to all the problems in the household.

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