I refer to the article “Additional S$100m a year to help town councils maintain, replace lifts: MND” (Channel NewsAsia, Feb 2).
It states that “Taken together, the additional funding will double MND’s existing funding support to town councils – under the annual Service and Conservancy Charge operating grants and quarterly Goods and Services Tax subvention – which amounted to around S$120 million in FY15/16, according to the ministry.”
50% matching grant?
As to “The funding will consist of a lift maintenance grant of S$600 per lift owned and maintained by the town councils, which is expected to cost the Government an additional S$13 million a year, as well as match 50 per cent of their quarterly contributions to the Lift Replacement Fund that will become mandatory for town councils from Apr1 this year.
14% S & C C increase is about $100m?
The lift replacement fund, meanwhile, is expected to cost the Government more than S$50 million in the coming year” – does it mean that the minimum of 14 per cent of the S & C C that town councils will now be required to set aside in the sinking fund for lifts is about $100 million ($50 million x 2)?
If so, then we can try to estimate the total that all the town councils collect in a year – $714 million ($100 million divided by 0.14).
About $9 increase?
So, with about 900,000 HDB households – does it mean that the expected average increase in S & C C per household due to this new lift fund is about $111 a year ($100 million divided by 900,000) or $9 a month?
As I understand that the average monthly S & C C is about $50 – does it mean that it may translate into an average increase of a whopping about 18 per cent ($9 divided by $50)?
Debate in Parliament?
Instead of just announcing the numbers like “minimum of 14 per cent” and “more than $100 million more grants” – shouldn’t there be a debate in Parliament as to what it actually means for Singaporean HDB households, like I have tried my best to estimate above?
No F1 = No S & C C increase?
By the way, since there has been speculation in the media that F1 may not continue – why not use the amount to fund lifts, so that S & C C may not need to be increased?