Town Councils may need to set aside part of sinking fund for lift replacement: Lawrence Wong

Town Councils may need to set aside part of sinking fund for lift replacement: Lawrence Wong
The National Development Minister was responding to queries from Member of Parliament for Bishan-Toa Payoh GRC Chong Kee Hiong on whether the ministry will investigate if Town Councils have sufficient funds for such projects.

By Chan Luo Er, Channel NewsAsia
Posted 24 Mar 2016 20:28 Updated 24 Mar 2016 20:30

SINGAPORE: Town Councils may be made to set aside part of their sinking funds for lift replacement, said National Development Minister Lawrence Wong in Parliament on Thursday (Mar 24).

He was responding to queries from Member of Parliament for Bishan-Toa Payoh GRC Chong Kee Hiong on whether the ministry will investigate if Town Councils have sufficient funds for such projects.

This comes after the authorities announced plans to ramp up checks on lifts, especially in HDB blocks, and update lift regulations following a recent spate of incidents.

"The Ministry of National Development is currently reviewing ways to help Town Councils plan ahead and better monitor their long-term financial sufficiency. For example, we are looking at having Town Councils do their own projections and put in place plans for financial sustainability. Given that lift replacement is a major Sinking Fund expenditure, we are also considering ring-fencing part of the Town Councils’ Sinking Funds to cater for such expenditures," said Mr Wong.

Mr Wong also said Town Councils are required to keep lifts functioning properly in HDB estates and should ensure they have enough funds to carry out their responsibilities.

Under the Town Council Act and Rules, they must set aside a minimum of 30 or 35 per cent of the service and conservancy charges collected and grants-in-aid received to fund cyclical works, including lift replacement.

- CNA/dl

- wong chee tat :)