Payment for Rental of Sports Hub for Extra Rehearsal Days for National Day Parade

Ms Sylvia Lim asked the Minister for Defence (a) what is the current estimated total cost for National Day Parade (NDP) 2016 after including the cost of rental for the extra days of rehearsals; and (b) how does this compare to the NDP costs of the previous five years.

Let me also inform Members that my reply will address the Question for Written Answer from the hon Member Mr Vikram Nair.

Mdm Speaker, this year we will celebrate the National Day Parade (NDP) at the National Stadium after a hiatus of 10 years. When compared to other NDP sites at the Padang and the Marina Bay Floating Platform, the new setting calls for a different format. For example, what Members here particularly like and what Singaporeans like, the Red Lions parachuting down into the site will not be possible for obvious safety reasons. We will also not be able to have a mobile column or aerial displays because we just cannot see them.

However, the new National Stadium also provides advantages for a different type of show, utilising the larger confined space and central pitch as a large stage. The NDP 2016 Executive Committee, the Exco, is excited about the possibilities that the new setting provides and has been hard at work preparing for NDP 2016 so that all Singaporeans can enjoy it and be proud of it.

Another distinct advantage of the new National Stadium, because it has a seating capacity of 55,000, almost twice the number of Singaporeans who can watch it either at the Padang or the Marina Bay Platform, is exactly this: there will be many more Singaporeans who will be able to watch the rehearsals and the NDP physically at the site, compared to the Marina Bay Floating Platform and the Padang. Both of these have capacities of about 25,000. In all, in the new site, we expect about 275,000 Singaporeans to be able to watch the National Education shows, the Preview show and NDP 2016 physically at the site. As with previous NDPs, "live" telecast will also allow Singaporeans to watch the shows at home.

Let me address the questions which have been posed regarding the costs of NDP at the National Stadium, and compare it, as asked, with NDPs held at the Marina Bay Floating Platform or the Padang. Previous NDPs at the Marina Bay Platform cost between $15.7 million and $17.9 million. The cost of NDP at the Padang in 2010 was $20.6 million and, in 2015, $40.5 million. The cost of NDP at the National Stadium this year is expected to be about $39.4 million.

There have been questions asked about itemised cost. Itemised cost comparisons between the three different sites are sometimes difficult and not meaningful as the venue conditions vary considerably for each site. For example, among these factors, the number of "live" spectators in the main venue and surrounding areas, the costs for added security in some sites will be more than the others, and also the collateral impact of opportunity costs on surrounding businesses and retails shops. Be that as it may, I will still give some figures and some comparisons.

The cost of the show segment, for example, for all three sites is similar, about half of total costs. But the cost to build infrastructure varies considerably. For example, each time we hold it at the Padang, we have to build all the spectator stands and that costs about 22% of the total cost, as you can well imagine. But it is negligible at the Marina Bay Floating Platform and the National Stadium because it is already built. Venue costs, which was the question asked, are expected to be very low for public sites at the Marina Bay Floating Platform and the Padang – about 4% of total costs – because the Padang and the Marina Bay Floating Platform are public sites. For NDP 2016 at the National Stadium, the venue cost is about 15% of total costs, similar to other national events held at private venues.

The Exco is aware that after the Golden Jubilee NDP and SG50 celebrations, expectations of this year's show, NDP 2016, are high and I think that they have resigned themselves to the fact that comparisons will be inevitable. However, I believe that, ultimately, the NDP is a show with Singaporeans, for Singaporeans and by Singaporeans. The committee will do their best to live up to expectations, but I ask that Singaporeans support the Exco so that they can put up a really good NDP this year for all of us to celebrate together.

Mdm Speaker, supplementary questions for the Minister. The first supplementary question is: the Minister mentioned that for NDP 2016, the venue cost would be about 15% of the infrastructure cost, if I heard him correctly. Could he specify in dollar terms, how much would the rental of the Sports Hub cost?

For the second question, Madam, we understand that the agreement between the Government and the Sports Hub allows the Ministry of Defence (MINDEF) to use the Sports Hub for 45 days free of charge each year. My question is: did the Government foresee that it would be holding the NDP at the Sports Hub? Next, why were only 45 days provided for when we understand that the average number of days needed for the NDP is closer to about 80 days?

Third, is there any dispute resolution mechanism provided for under the public-private partnership between the Government and the Sports Hub over the use of the Hub?

Madam, 15% of $39.4 million is the figure which I have provided. The Member asked for details relating to the contract. The contract was negotiated as is, in the usual way that we negotiate with private providers and it is 15% of the total cost of the show, which is equivalent to the cost of public events held at private venues. Whether there is recourse for dispute resolution, I expect that it will be similar to all public contracts held in private venues as well.

I thank the Minister for the reply. I understand that the proportion of the amount spent this time has gone up from 4% to 15% just for venue cost. For 2016, what is the proportion between the cost for rehearsals versus the cost for the actual venue for the actual day itself, as well as the key rehearsals, for example, the 45 days set aside versus the 80 days needed? Did the Ministry consider doing the rehearsals elsewhere and why were alternative locations not considered to save on the cost?

Madam, I have left it to the Exco to decide whether they can hold it off-site and, indeed, many of the side rehearsals are held off-site. In other words, they come together when they feel that there is a need to be physically at the stadium. Whether it is held at the Padang, Floating Platform or the National Stadium, they start fairly early. In fact, they usually start about seven or eight months before the actual show in various groups, and some of these are held in camps. But ultimately, to put up a good show, we have to put people together and test it. Whether we could have done or we can do more of it off-site and then come to the venue itself, I leave it to the Exco. The mandate and the deliverable for them are to put up a good show. I will pass the suggestion by the Member to them, to see whether they can reduce costs by doing it off-site and they will have to determine whether they can.

Madam, supplementary questions for the Minister. The Minister mentioned that the 15% is a figure. So, I would like him to confirm that what he is saying is that the rental cost of the Sports Hub is calculated to be under $6 million.

The next question is: will the detailed figures be provided in the Government Budget in the coming Budget for 2016 in terms of the itemised costs for MINDEF?

The third question is: the Minister mentioned in his speech that public expectations have risen since the SG50 NDP. In last year's Budget, we were told by the Government that extra expenditure was expected for NDP 2015 because it was the SG50 year. So, I would like to ask the Minister whether it is actually not correct or not justifiable for the Government to proceed on the basis that SG50 is a benchmark for future parades in non-milestone years.

The last question is: the Minister did not quite answer my question about the dispute resolution under the public-private partnership (PPP). Is he able to give a more detailed answer about how disputes will be resolved under the agreement?

Madam, let me deal with the last question first. First, there is no dispute. I do not have the detailed answer to that question. So, if the Member could file it as a separate question about dispute resolution, I will be happy to answer it or get the relevant party to answer it.

I never said that last year's NDP would be used as a benchmark. This is what the Member has said. I have just given the cost for this year's NDP 2016. I have provided many figures, including the fact that the number of spectators in the show that can be physically there will be more than double. I said 275,000. The Member has chosen not to talk about that figure but to move back to her points.

So, let me clarify the answer to the question asked. We have given the cost. We have given what the spectators see. I have given itemised costs in terms of what it costs for infrastructure. The Member has asked whether we will provide details in the Budget. The Member has been in this House for many years and knows that we do not provide those details in the Budget and, if Members ask a question, we will tell you.

I thank the Minister for the detailed reply. National Day has historically been at the National Stadium for many, many years. The Floating Platform and the Padang were a change for about the last 10 years or so. But now that it is coming back to the National Stadium, what I am really interested in is that the Minister mentioned that 275,000 people would be able to enjoy it. Would this also mean that there will be more tickets available for things like the previews and so on? What is the usual number of people who apply for these tickets because I know there are a lot of disappointed people every year?

Mdm Speaker, this is a vexing problem. We have usually many more who apply than can come. I dare not raise hopes. All I can say is that more than double the number of people will be able to watch it at the National Stadium. But still, there will be many more who cannot because the numbers go up. Now that I have given this figure that 275,000 can watch it, I am sure I will get more than double the number of people applying.

Madam, could the Minister answer my question about future NDPs, whether there is an expectation that we will go back to the Sports Hub and what is expected to be paid? That was in the Parliamentary Question I filed.

Madam, that is a theoretical question and I do not have the answer.