SERVICE AND CONSERVANCY CHARGES GRANT (Extension)

Mr Ang Mong Seng asked the Minister for National Development whether the Special Service and Conservancy Charges (S&CC) grant as part of the Utilities Save scheme can be extended for another year in view of the current weak economic situation.

The Minister for National Development (Mr Mah Bow Tan): Sir, first of all, let me explain the background to the special S&CC grant.

Since 1997, the Government has been helping households living in 1-, 2-, 3- and 4-room HDB flats to cushion the impact of the increase in their monthly electricity and water charges. In FY2000, the assistance given to these households comprised utilities rebates and a special Service and Conservancy Charge (S&CC) grant. The total amount received by each HDB household ranged from $148 to $266, depending on the flat type. This was in FY2000.

This year, during the Budget debate in March 2001, the Government announced that it will enhance the utilities rebates for HDB households under a new scheme, called the Utilities Save Scheme. Under this scheme, households living in 1-, 2-, 3-, 4- and 5-room HDB flats will each receive a grant of between $250 and $350 in FY2001, this year, to help them pay part of their electricity and water charges. The scheme will cost the Government $226 million.

In dollar terms, for each HDB household, the benefits this financial year under the new Utilities Save Scheme are more generous than the FY2000 package. As the Government will be helping HDB households through the Utilities Save Scheme, the special S&CC grant was not extended after it expired in June 2001.

MND and MTI are sending a joint letter to all HDB households to explain why the special S&CC grant will not be extended and why they are better off with the new Utilities Save Scheme.