WATER DEMAND (Growth rate and conservation)

Dr Augustine H.H. Tan asked the Minister for Trade and Industry how rapidly the demand for water has grown in the last few years; what are the projected rates of growth; what steps the Public Utilities Board is taking to encourage water conservation; and what plans PUB has to develop water resources for the 1990s.

Dr Koh Lam Son asked the Minister for Trade and Industry whether the increase in the rate of growth of water demand in 1984 of 7% over 1983 was due to increased water wastage or increased number of consumers; and what percentage of annual increase will be deemed undesirable thereby requiring drastic actions.

The Minister of State for Defence and Trade and Industry (BG Lee Hsien Loong) (for the Minister for Trade and Industry): Mr Speaker, Sir, with your permission, I will take Questions Nos. 3 and 4 together.

Demand for water in Singapore has risen at an increasing rate in the last three years. In 1982, it grew by 3.5%; in 1983 by 5.1%; and in 1984 by 7.2%.

There are three main reasons why the demand for water has shot up so rapidly. First, there was a large increase in the number of new households as more public housing and private condominium units were completed. Second, there was also a substantial increase in the number of hotel rooms. Third, there was increased construction activity, where there is considerable wastage. If we continue to consume water at the current rate, in 15 years, we will be using more water than all our reservoirs in Singapore and sources in Johore can ever supply.

Hence, all Singaporeans, especially households, hoteliers and supervisors, and workers at construction sites, must learn to use water more efficiently and cut down wastage. Urgent measures are needed as we are reaching the limits of developing water resources. The PUB is currently developing the Sungei Seletar/ Bedok Water Scheme. It will be the last new surface water source available in Singapore for development. Nearly half of Singapore is already catchment area.

After this, the PUB will have to develop water resources outside Singapore. It is currently developing three schemes in Johore - the extension works to the Scudai Waterworks, the extension works to the Johore Waterworks, and construction of the Johore River pipeline.

A Malaysian-based international firm of consultants is conducting a feasibility study to look into the joint development of the Johore River to meet the long-term needs of both Singapore and Johore.

The scope for developing further surface water resources appears limited. If the fast rate of growth in consumption continues unabated, more drastic and very costly solutions, like desalination, will be needed to meet our future needs. Desalination is more than 10 times as expensive as processing river and reservoir water. We must therefore push relentlessly for conservation, to slow down the growth of our water demand.

The Government will use educational, fiscal and, if necessary, legislative measures to persuade the public to conserve water. National water conservation campaigns will be organized regularly. The next campaign will be held in June this year. Companies which make an effort to save large amounts of water will be considered for investment allowances on water conservation equipment under the Economic Expansion Incentives Act. Industries will also be encouraged to use more industrial water as substitution for PUB water. With the amendment of the PUB Water Supply Regulations in November 1983, it is now compulsory for all commercial establishments, including hotels, restaurants, clubs and recreational complexes, to install water-saving devices in their public wash rooms.

PUB will continue to look into other means of encouraging water conservation. In the past, tariff increases had been successful in dampening demand. If necessary, they will be used again to discourage excessive use of water.

Dr Lau Teik Soon (Serangoon Gardens): Sir, can I ask the Minister of State how secure the water resources which are located outside of Singapore are, and what measures are being taken to guarantee a long-term supply of water from those sources?

BG Lee Hsien Loong: Mr Speaker, Sir, the water sources in Johore are subject to the terms of the Johore Water Agreements, one of which runs for 50 years and the other one which runs for 100 years. They are not due to expire for 25 and 75 years respectively.

Dr Augustine H.H. Tan (Whampoa): Mr Speaker, Sir, would the Hon. Minister of State inform this House what kinds of fiscal measures are being contemplated, and whether they will be harsher on the wasters of water?

BG Lee Hsien Loong: Mr Speaker, Sir, indeed it has been the policy of the PUB to charge incremental rates for water. In other words, if you use less water the price is lower, and as your consumption increases the price for each successive cubic metre goes up. It is so for families. It is so for domestic users. It is so for non-domestic industrial users of water. It is the policy of PUB to charge higher, even punitive, rates to users who waste water.

Let me explain like this. If we could get a lot more water by just building another plant, there would be no sense in having very high water rates, because we would just build the next plant, sell the water, and charge the consumers. But we cannot do that, because even if we can build the plant, there is a limited amount of rainfall. There is a limited catchment area, and there is no further fresh water available to be tapped. So we have to be very strict with wasters of water.

If you just look at Singapore, half of Singapore is catchment area. What does that mean? It means the other half is housing estates, homes, roads, defence lands, and all the many other purposes for which land is required in Singapore and which we have recently discussed in this House. Half is catchment area, and you cannot make that much more than half, So we have reached the limits within Singapore, Even outside Singapore, there are limits, as I have pointed out, which will be reached within 15 years. So we have to be very, very conscientious and parsimonious with water.

Mr Tan Soo Khoon (Alexandra): Sir, as a further incentive, will the Minister of State not consider giving a discount on water rates for households which take steps to conserve the use of water?

BG Lee Hsien Loong: Mr Speaker, Sir, I will send this suggestion to the PUB. But I would say that the cost of water for households is already very cheap, because the first 15 cubic metres is charged at 42 cents per cubic metre, and most households use less than that. The scope for discounts is not very large.

Dr Augustine Tan: Sir, the Hon. Minister of State mentioned considerable wastage of water at construction sites, Has he some idea of the volume of water being wasted?

BG Lee Hsien Loong: Mr Speaker, Sir, it would be difficult for me to say exactly how little water you need to build a block with. But I would guess about 20-30% of the water being consumed could easily be saved, would be worthwhile to save.

Dr Koh Lam Son: Two supplementary questions, Sir. What percentage of growth rate of water demand would the Minister of State consider as satisfactory and achievable? We are told that 6-7% annual growth rate is above the desired level. The second question is that the growth rate of 7% in 1984 is considered high, and it occurred despite new water conservation measures instituted by the Water Conservation Unit of the PUB and despite the National Water Campaign.

Mr Speaker: Where is your supplementary question, Dr Koh?

Dr Koh Lam Son: Would this not suggest that such measures are inadequate and that new measures should be considered?

BG Lee Hsien Loong: Mr Speaker, Sir, there is a certain parallel between water and cars. The ideal growth rate in both cases is, of course, zero. In both cases it will have to be achievable. We cannot cause more rain to fall just because we need to drink and use more water. Those are not options open to us. We have a certain amount of natural water resource, which is more than the 185 million gallons per day we use now. But at the present rate of growth, it will reach the ceiling in 15 years. Sir, if we halve the rate of growth, we would reach the ceiling perhaps in 30 years. It pushes off the problem into the future.

But the problem will have to be faced, and the consumption must level off. If consumption does not level off, then we are reduced to very drastic solutions to find more water. For example, desalination or distillation. I said this is more than 10 times as expensive as processing water from a river or a reservoir. If people need water so badly that they are prepared to pay more than 10 times as much as they now do for water, then it will be done. But I cannot see that being done for most households in Singapore. We will reach within 15 years if not an absolutely vertical wall, at least a very steep cliff, which it will be very hard to go past, unless we do something drastic to the rate of growth,