Another Parliment excerpt.
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POTONG PASIR TOWN CENTRE
(Lift Upgrading Programme)
8. Mr Chiam See Tong asked the Minister for National Development
whether, in the light of the recent National Day Rally speech where
the Prime Minister said that Singapore must take good care of its
senior citizens, his Ministry will now allow the Potong Pasir Town
Council to make lifts stop at every floor in all the blocks of
flats that are currently undergoing the town council's Lift
Upgrading Programme.
The Minister of State for National Development (Mr Cedric Foo Chee
Keng) (for the Minister for National Development): Mr Speaker, Sir,
all town councils, including the Potong Pasir Town Council, are
free to carry out their own Lift Upgrading Programme which may
include providing for lift access on every floor. What they cannot
do is to finance such major upgrading works solely or substantially
from town council funds. Let me explain.
Town councils (TCs) are largely funded by service and conservancy
charges (S&CC) collected from residents as well as grants from
the Government. The Government has to ensure that TCs use these
funds prudently for the benefit of the majority of their residents
over the long term. This is why TCs are required by the Town
Councils Act to lock away 30% to 35% of their funds into a sinking
fund, to ensure that they have adequate funds in the long term to
do major cyclical works like repainting, re-roofing, replacing
lifts and replacing water-supply systems. The remaining 65% to 70%
of the funds are used for routine operating expenditure, such as
cleaning, repairs and utility charges.
Lift upgrading works which will enable lifts to stop at every floor
are major structural upgrading. They are very costly. Town
councils' funds are neither intended nor adequate for this purpose.
Therefore, under the Government's Lift Upgrading Programme, town
councils fund only a small portion of the total cost and the bulk
of the cost is borne by the Government.
Mr Chiam See Tong (Potong Pasir): Sir, I have got two supplementary
questions for the Minister of State. What are the reasons for HDB
in not allowing lifts to stop at every floor at Lorong 8, Toa
Payoh, of the Potong Pasir Constituency? And will HDB Lift
Upgrading Programme be implemented at Potong Pasir estate?
Mr Cedric Foo Chee Keng: Sir, as I said earlier, town councils are
free to do major upgrading programme for the lifts, including
providing for lifts to stop at every floor. However, the town
councils cannot use town council's funds to substantially finance
such upgrading works. If I may refer the Member to the Potong Pasir
Town Council's accounts, just as an example. Potong Pasir has a
balance of $8 million in its sinking fund. If he does the cyclical
repairs for the 12 blocks that he is right now doing, it will cost
him $4 million. So he would have $4 million left. But if he were to
do upgrading in a manner which allows lifts to stop at every floor,
that would cost another $12 million for this LUP, which means he
will be short of $8 million. So the Potong Pasir Town Council
really does not have sufficient balance in its sinking fund to do
major lift upgrading works.
Sir, the Member's second question is whether or not Potong Pasir
Town Council will get the Government's Lift Upgrading Programme.
To-date, the Government has done about 600 blocks of LUP and there
are about 3,000 eligible blocks remaining. So we have completed
roughly 17%. Lift upgrading is selected based on several criteria,
ie, the block configuration, the needs of the residents, the
geographical spread, and also the degree of support from the
residents. We need to bear in mind that it is the whole range of
Government policies and programmes that bring about budget
surpluses that allow us to do such improvement programmes. Hence,
all things being equal, residents who support and vote for the
Government policies would be given higher priority in
upgrading.
Mr Chiam See Tong: With due respect to the Minister of State, I
have been the Chairman of the Potong Pasir Town Council for 15
years now. And I think we know what funds can be used for lift
upgrading and what funds cannot be used. I can assure the Minister
of State that we do have sufficient funds in the sinking fund to
carry out both our Lift Upgrading Programme at Lorong 8, Toa Payoh,
and also the R&R works that we are going to do at Potong Pasir
estate. Of course, we have to get permission from HDB to do our
lift upgrading at Lorong 8, Toa Payoh. But the HDB specifically
says, "Ok, you can go ahead and do lift upgrading.", but they do
not allow us to make the lifts to stop at every floor. So I want to
know what is the reason. We do not spend $12 million, as the
Minister has said. The lift upgrading for 29 lifts only cost us
just over $2 million. I do not know where he gets his figures
from.
Mr Cedric Foo Chee Keng: Sir, as I said earlier, the town councils
are free to do lift upgrading, including providing for lift access
to every floor. What it cannot do is to use the sinking fund for
such major structural works which include lift stops at every
floor. And this is quite plain. Sinking fund is provided for all
sorts of cyclical works, not just lift upgrading works. It could be
replacement of lifts, water systems, and so forth. So if a
particular town council were to use its sinking fund purely to do
major structural upgrading works, like allowing lifts to stop at
every floor, then it would be an inappropriate use of the sinking
fund. Just a back-of-the-envelope calculation, for a 4-room flat,
the Member would know that we collect about $50 per month for
S&CC. So multiply that by 12, it is about $600 a year. And if
one-third of $600 is set aside for sinking fund, that is $200. To
do a lift upgrading programme which allows a lift to stop at every
floor would cost per benefiting unit something like $4,000 at the
lowest, that is, for common corridor type of flats. You take $4,000
and divide by 200, it will take you 20 years. You will have to
collect 20 years of sinking fund from the residents.
Mr Chiam also has six segmented blocks and those cost a lot more,
six times more or $24,000 to do lift upgrading works per benefiting
unit. This means 20 x 6, or 120 years of collection of sinking fund
from the residents before such works can be completed. So I think
my numbers are clear. We have done our research. It will be very
difficult and inappropriate for the town council to use its sinking
fund for such purposes.