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.