MULTI-STOREY CAR PARKS IN SIMEI ESTATE (Reduction of season parking charges)

Mr Teo Chong Tee asked the Minister for National Development whether he will reduce the season parking charges for all the multi-storey car parks which are grossly under-utilised in Simei Estate.

Mr Lim Hng Kiang (for the Minister for National Development): Sir, we are currently reviewing the season parking rates for surface and multi-storey carparks. We will be introducing different charges for carpark lots in different areas. Carpark charges will vary according to the cost of land, eg, whether the land is in the central or non-central areas. Carpark charges will also vary according to demand and supply in a particular area. And, finally, carpark charges will also vary depending on the type of carpark, ie, whether it is a surface or a multi-storey carpark. The new charges will be announced within the next three months.

Mr Low Thia Khiang: Sir, will the Minister consider charging only a nominal charge for families living in HUDC flats which do not have void decks and who need to use carparks for funeral wakes? Right now, they are being charged at market rates. It means that they have to pay full-day carpark fee plus night parking fee which I think is very high.

Mr Lim Hng Kiang: Sir, if the Member is referring to using of carpark space for funeral wakes, I think we will take a look at the charges. But we are referring to carpark charges for vehicles.

Mr Chng Hee Kok (Tampines GRC): Sir, I have a number of supplementary questions. (1) Will the Minister of State agree that the multi-storey carpark is part of the infrastructure and has a sunk cost?

(2) There is better land utilisation at multi-storey carparks. In other words, a 5-storey carpark will house more cars than a surface carpark. In view of this, in his review, will he say that parking charges for multi-storey carparks should be lower than surface carparks?

Mr Lim Hng Kiang: Sir, if the Member propounds the theory of sunk costs, a lot of things will be free. I think that is not feasible. And coming from the private sector, I am surprised to hear that suggestion from him.

Basically, the costing of a multi-storey carpark takes care of both the land cost as well as the construction cost of the carpark. Even though a multi-storey carpark can yield more carpark lots, the construction cost is, in fact, quite high. So the cost of providing a multi-storey carpark lot is, in fact, higher than a surface carpark lot.

Mr Low Thia Khiang: Sir, would the Minister say that after some time, the HDB would have recovered the construction cost of a multi-storey carpark? And by then, would he reduce the parking charges for multi-storey carparks?

Mr Lim Hng Kiang: Again, this Member comes from the private sector. If we have recovered the construction cost, would it be for free? Anyway, the fact of the matter is that the construction costs for both multi-storey carparks and surface carparks are not recovered. That is why the charges are below the construction cost of providing such carpark lots. This was explained by the Minister for National Development in 1989.