<TABLE class=forumline border=0 cellSpacing=1 cellPadding=3 width="100%"><TBODY><TR><TD class=row1 vAlign=top width=150 align=left>yap ah loy
Joined: 03 Aug 2008
Posts: 2053
</TD><TD class=row1 height=28 vAlign=top width="100%"><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD width="100%">
Posted: Fri Apr 22, 2011 8:35 am Post subject: NEWS: WP locks horns with PAP over housing issue</TD><TD vAlign=top noWrap>
</TD></TR><TR><TD colSpan=2><HR></TD></TR><TR><TD colSpan=2>Workers' Party locks horns with PAP over housing issue
by Tanya Fong 04:47 AM Apr 22, 2011
SINGAPORE - A day after National Development Minister Mah Bow Tan described the Workers' Party's (WP) "dangerous" housing proposal as an illegal raid on the reserves, WP chief Low Thia Khiang yesterday tried to turn the tables on the People's Action Party (PAP) by claiming that it is the Government which has been "raiding" the country's coffers.
Speaking at the WP's second press conference to unveil its candidates, Mr Low also claimed that Mr Mah's statement was "calculated to confuse Singaporeans".
Said Mr Low: "The minister accused the WP of raiding the reserves by suggesting that the Government lower the land cost of building HDB flats. His logic is very simple: If land cost is lower, it means less proceeds from sales of land contributed to reserves."
"If this is the logic - that by contributing less, I raid the reserves, then in fact the Government has been raiding reserves, because the current land cost of HDB flats is already lower" compared to what the private developers would have to pay in an open tender, said Mr Low.
In the same vein, the S$3.2 billion Grow and Share package "to please the voters" is also tantamount to raiding the reserves as it means less contributions in terms of surpluses to the kitty, Mr Low charged.
While the WP has argued that its proposals will have minimal impact on the resale market, Mr Mah had pointed out that more than half of first- and second-time home buyers turn to the resale market and that lowering prices will see them flocking to buy new flats - which would not only lengthen the waiting period but also cause resale prices to fall.
To that, Mr Low responded that the Government controls the supply of flats. "My question is whether Mr Mah is overstating the effect and stretching his imagination too far," said Mr Low.
Mr Low reiterated that the WP's suggestion of pricing new flats based on median household income should not have an impact - in the short term at least - on existing flat prices for two other reasons: The number of new flats are small and buyers cannot sell their flats immediately.
Mr Low called on the PAP to release the total proceeds which the Government has collected from land sales in the last five years and to give a breakdown of how much of it went into the reserves.
He also maintained that the WP is not against the PAP's upgrading policy as it improves the conditions of Singaporeans living in HDB estates. However, it is against the PAP tying the prospect of upgrading to votes during elections.
Said Mr Low: "Using the Government's money to secure electoral advantage is termed as pork barrel politics. Is this what a First World government would do?"
Still, he felt that the Government has to be careful when its comes to asset enhancement policies - given that home owners are hard-pressed to find cheaper alternatives should they decide to sell their existing homes.
Reiterating the WP's stand, Mr Low said the party is concerned that the high prices of HDB flats will "become the financial burden of a younger generation of Singaporeans" and "mortgage" their future. Pegging the resale price on prevailing market land sales price is not sustainable in the long term because HDB flat prices may plummet during a financial crisis, leaving people with "negative assets".
Said Mr Low: "Can the Government guarantee Singaporeans this will not happen again since the Government is pursuing high asset price policy? The Government will do well in answering these concerns and questions squarely rather than sidetracking the issue and attacking the WP."</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
Joined: 03 Aug 2008
Posts: 2053
</TD><TD class=row1 height=28 vAlign=top width="100%"><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD width="100%">
Posted: Fri Apr 22, 2011 8:35 am Post subject: NEWS: WP locks horns with PAP over housing issue</TD><TD vAlign=top noWrap>
</TD></TR><TR><TD colSpan=2><HR></TD></TR><TR><TD colSpan=2>Workers' Party locks horns with PAP over housing issue by Tanya Fong 04:47 AM Apr 22, 2011
SINGAPORE - A day after National Development Minister Mah Bow Tan described the Workers' Party's (WP) "dangerous" housing proposal as an illegal raid on the reserves, WP chief Low Thia Khiang yesterday tried to turn the tables on the People's Action Party (PAP) by claiming that it is the Government which has been "raiding" the country's coffers.
Speaking at the WP's second press conference to unveil its candidates, Mr Low also claimed that Mr Mah's statement was "calculated to confuse Singaporeans".
Said Mr Low: "The minister accused the WP of raiding the reserves by suggesting that the Government lower the land cost of building HDB flats. His logic is very simple: If land cost is lower, it means less proceeds from sales of land contributed to reserves."
"If this is the logic - that by contributing less, I raid the reserves, then in fact the Government has been raiding reserves, because the current land cost of HDB flats is already lower" compared to what the private developers would have to pay in an open tender, said Mr Low.
In the same vein, the S$3.2 billion Grow and Share package "to please the voters" is also tantamount to raiding the reserves as it means less contributions in terms of surpluses to the kitty, Mr Low charged.
While the WP has argued that its proposals will have minimal impact on the resale market, Mr Mah had pointed out that more than half of first- and second-time home buyers turn to the resale market and that lowering prices will see them flocking to buy new flats - which would not only lengthen the waiting period but also cause resale prices to fall.
To that, Mr Low responded that the Government controls the supply of flats. "My question is whether Mr Mah is overstating the effect and stretching his imagination too far," said Mr Low.
Mr Low reiterated that the WP's suggestion of pricing new flats based on median household income should not have an impact - in the short term at least - on existing flat prices for two other reasons: The number of new flats are small and buyers cannot sell their flats immediately.
Mr Low called on the PAP to release the total proceeds which the Government has collected from land sales in the last five years and to give a breakdown of how much of it went into the reserves.
He also maintained that the WP is not against the PAP's upgrading policy as it improves the conditions of Singaporeans living in HDB estates. However, it is against the PAP tying the prospect of upgrading to votes during elections.
Said Mr Low: "Using the Government's money to secure electoral advantage is termed as pork barrel politics. Is this what a First World government would do?"
Still, he felt that the Government has to be careful when its comes to asset enhancement policies - given that home owners are hard-pressed to find cheaper alternatives should they decide to sell their existing homes.
Reiterating the WP's stand, Mr Low said the party is concerned that the high prices of HDB flats will "become the financial burden of a younger generation of Singaporeans" and "mortgage" their future. Pegging the resale price on prevailing market land sales price is not sustainable in the long term because HDB flat prices may plummet during a financial crisis, leaving people with "negative assets".
Said Mr Low: "Can the Government guarantee Singaporeans this will not happen again since the Government is pursuing high asset price policy? The Government will do well in answering these concerns and questions squarely rather than sidetracking the issue and attacking the WP."</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
