Oral Answer by Ministry of National Development on lift replacement by Town Councils
Mar 24, 2016
Mr Chong Kee Hiong: To ask the Minister for National Development
(a) whether the Ministry will investigate if there are sufficient funds in each Town Council (TC) to replace their lifts when their recommended life cycle comes to an end;
(b) under what conditions do TCs need to bring forward lift replacements; and
(c) whether these warrant an increase in service and conservancy charges or a higher allocation percentage to the sinking fund.
Answer:
Town Councils have the statutory responsibility to carry out proper maintenance and cyclical replacement of lifts in HDB estates, to ensure that lifts are well-functioning.
Under the Town Councils Act and Rules, every Town Council is required to set aside a minimum of 30% or 35% of the service and conservancy charges (S&CC) collected and grants-in-aid received in a separate Sinking Fund to fund its cyclical works, which includes the replacement of lifts and lift parts.
The recommended replacement cycle of 28 years for lifts serves as a guide to Town Councils in planning and budgeting for the cyclical work. Town Councils should, in consultation with their appointed lift maintenance contractors and their Authorised Examiner, assess when their lifts should be replaced, taking into consideration their working condition and state of repair, as well as their performance at the regular servicing and annual lift inspections.
Town Councils are responsible for managing their finances and should take the appropriate measures to ensure that they have sufficient funds to carry out their statutory responsibilities. They can choose to contribute a higher percentage of their S&CC collections and grants-in-aid beyond the stipulated minimum to their Sinking Funds, or increase S&CC rates where necessary.
MND is currently reviewing ways to help Town Councils plan ahead and better monitor their long-term financial sufficiency, such as requiring Town Councils to submit their projections and plans for financial sustainability. Given that lift replacement is a major Sinking Fund expenditure, MND is also considering ring-fencing part of the Town Councils’ Sinking Funds to cater for such expenditures.