[4/5] LAA for PP

Question 1

Rationale for LAA

Answer 1

“The welfare of the people is the paramount law and public necessity is greater than private”

Question 2

History of LAA - How it came to be

Answer 2

• internal self-govt, resolve poor housing and unemployment
• rapid immigration, housing shortages, problems associated with overcrowding
• required large scale development
• clear that private land ownership was a hindrance to rapid industrialisation and housing construction
• Short-lived Merger/ Constitution –> protection of right of property and adequate compensation

Question 3

First of Acquisition in Singapore - Post Merger

Answer 3

The protection of right of property and adequate compensation was deliberately excluded

Sub-Economic Rates: no private landowner should benefit from development taken place at public expense; price paid on the acquisition for public purposes should not be higher than what the land would have been worth had the Government not contemplated development generally in the area

1965 50% owned by state
1985 76% owned by state

Question 4

Land Acquisition Act (Cap 152) Section 5(1)

Answer 4

Whenever any particular land is needed -
(a) for any public purpose

(b) by any person, corporation or statutory board, for any work or an undertaking which, in the opinion of the minister, is of public benefit or of public utility or in the public interest

(c) for any residential, commercial, or industrial purposes

Question 5

Public Purpose Definition Limb 1

Answer 5

Furthers the general interest of the community, as opposed to a particular interest of individuals (a fraction of the community ok)

Question 6

Galstaun v Attorney General (1979)

Answer 6

Government decides what public purpose is

“The Government is the proper authority for deciding what a public purpose is. When the Government declares that a certain purpose is a public purpose, it must be presumed that the Government is in possession of facts which induce the Government to declare that the purpose is a public purpose.”

Question 7

Land Acquisition Act (Cap 152) Section 5(3)

Answer 7

Conclusive Evidence Provision

notification shall be conclusive evidence that the land is needed for the purpose

Question 8

Phases of Land Acquisition in Singapore

Answer 8

1960s - Industrial, Public Housing

1970s - Redevelopment of Urban Areas, Resettlement of Farm, Changi Airport

1980s/1990s - Schools, Drainage Projects, MRT

Post 2000s - Road extension and expansion, rail projects

Question 9

Section 5 State Lands Act Amendment Feb 2015

Answer 9

Increasing State’s Power

Subterranean space under any land parcel, or
Airspace above any land parcel

This amendment facilitates the development of public projects that require a specific stratum of space

Question 10

Fundamental Principles of LAA 1967

Answer 10

1) ability to acquire private land for broad variety of uses (Section 5 State Lands Act Amendment Feb 2015)

2) lack of processes for landowners to challenge governments decision [Galstaun v Attorney General (1979)]

3) below-market rate compensation paid to landowners (private landowners too much power; no priv landowner should benefit from development which had taken place at public expense; price paid on Acquisition should not be higher than what land would have been worth..)

4) Establishment of an Appeals Board to adjudicate amount of compensation paid

Question 11

Ultra Vires

Answer 11

(Beyond the Powers)

All administrative power must be exercised within its legal limits (Common Law Rule)

acting unreasonably; acting not in accordance with the rules of natural justice (impartiality and fairness)

Associated Provincial Picture Houses Ltd v Wednesbury Corp [1948]

Galstaun v Attorney-General [1979-1980]

Question 12

Kentucky Fried Chicken Management Pte Ltd v The Attorney General (1992)

Answer 12

If KFC’s argument was correct, then it would make the acquisition of land almost impossible

Court held:
Government could acquire land even as a reversioner of a lease

Question 13

Basco Enterprises v Soh Siong Wah (1989)

Answer 13

Held: Court of Appeal decided that urban redevelopment included conservation

Question 14

Section 34

Answer 14

Matters to be disregarded in determining compensation: The board shall not take into consideration

degree of urgency which has led to the acquisition

any disinclination of the person interested to part with the land acquired

Question 15

LAA Process

Answer 15

Notice of Acquisition
Collectors Inquiry
Collectors Award
Payment of Compensation and Site Possession
Appeal Process

Question 16

Compensation in the Early Days

Answer 16

Squatters not compensated under LAA as they held no legal interest in affected land, but compensated for land improvements

Question 17

The Collector’s Inquiry

Answer 17

Award made by Collector of Land Revenue - agent of govt

non-binding offer, can file appeal to Appeals Board

Question 18

Section 8 LAA

Answer 18

persons claiming interest in the land acquired entitled to received award

Company that owns the land
Owner of subject land
Mortgagee
Lessee
Reversioner
Option holder
Person who has entered into a contract to purchase land
trustee/beneficiary
Persons entitled to the benefit of Easements (DT)

Question 19

Compensation at Market Value

Answer 19

(1) Market Value

(2) Retrospective Statutory Date

(3) Other constraints that are now killed

Question 20

Market Value

Answer 20

most probable selling price if exposed for reasonable period of time

price level reached between bargaining, with minimum artificial constraints

price at which a willing seller is prepared to sell to a willing purchaser, neither acting under any compulsion

Question 21

Retrospective Statutory Date 1973-1988

Answer 21

30 November 1973 OR date of Gazette notification (whichever lower)

Priv landowners should not profit from increase in land value brought by economic development paid for with public funds

Question 22

2-year rule (killed 2007)

Answer 22

Disregards value of improvements made by owner of land within 2 years in contemplation of the acquisition

Question 22

7 year rule (killed 2007)

Answer 22

disregards any increase in value that is attributable to infrastructural works done by the Government within 7 years prior to the acquisition

Question 22

Set-Off Provision (killed 2015)

Answer 22

Disregards expected increase in land value arising from the change of use (betterment levy)

Question 22

Chuan Park Condo

Question 23

Other Issues in Compensation

Answer 23

provisions benefitting interested persons

(1) Severance Damage
(2) Injurious Affection
(3) Injury to Goodwill
(4) Disturbance
(5) Ex-gratia Payments

Question 23

Severance Damage

Answer 23

compensation for damage caused by severing property (act of severance)

privacy and other amenities
reduction of access to remaining land
aesthetic value of land

Question 23

Injurious Affection

Answer 23

anticipated depreciation of the land retained (makes it more expensive or limits value of land)
dust, noise, loss of privacy etc.

linked with severance damage

Question 24

Injury to Goodwill

Answer 24

tarnish the name

Question 24

Disturbance

Answer 24

Interruption of peace

Question 25

Ex-gratia Payments

Answer 25

[no mention of ex gratia payments within the LAA, and the award process is administrative]

chief valuer decides quantum of payment

Question 26

Appeals Board

Answer 26

Appeals Board, an administrative tribunal established by the Act, not the Courts

entrusting matters of specialist evaluation to administrative tribunals

Question 27

Compensation Post 2007

Answer 27

Removal of Retrospective Statutory Date
2 year (bona fide) and 7 year rule (cannot quantify) repealed

Market Value