(e)
47 -
why the Government continues to grant PTA to civil servants while a considerable number of NDQs are left vacant?
Reply:
Mr President,
In October 1990 the Private Tenancy Allowance (PTA) scheme and Non- Departmental Quarters (NDQ) were withdrawn as housing benefits for new recruits and replaced by the Home Financing Scheme and a revamped Home Purchase Scheme, which are payable for a maximum of 120 months. This was done to promote home ownership amongst civil servants and to reduce government long term housing costs. Since then, demand for NDQ and the PTA has fallen as officers who are entitled to receive NDQ have left the service or opted to take up the HFS. The demand for NDQ will continue to fall; in due course we expect the NDQ and PTA to be phased out completely.
In recognition of the effect of the policy change, Government undertook a programme to dispose of surplus NDQ by deleasing leased units and the sale of sites. So far this has resulted in a reduction in the number of NDQ from 3,135 in October 1990 to 1,926 in March 1996. In parallel, the number of PTA recipients has also fallen substantially, from 2,428 in October 1990 to 778 in March 1996.
Government recently set up a Working Group to review the progress of the disposal programme, and to assess the demand for NDQ in future with a view to modifying the programme as necessary. The Working Group has already decided on a number of measures to revamp the programme, including the leasing out vacant quarters and the sale of individual units as interim steps to make better use of the surplus units before sites can be sold or converted to other uses.
Turning to the specific questions -
Expenditure on PTA in the last three years
Expenditure on PTA was $190 m in 1993/94, $222m in 1994/95 and $225 m in
1995/96.