SERVICE AND CONSERVANCY FEES (Arrears)

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SERVICE AND CONSERVANCY FEES:

(Arrears): 8.

Dr Chong Weng Chiew asked the Minister for National Development (a) what is the current arrears of service and conservancy fees; (b) what is this amount as a percentage of total billing; and (c) whether his Ministry has plans to offer assistance to Town Councils to help them negotiate the delicate balance between helping households in genuine financial difficulties and the efficient collection of such fees.

The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, as at end-January 2004, 51,450 or 5.9% of HDB residential households were in S&CC arrears for three months or more. The total amount of arrears outstanding is about $24.7 million, which is slightly more than half the total monthly S&CC billing by all Town Councils.

Sir, the Government has been helping Town Councils to finance their operations through an annual operating grant. In FY2003, this amount was $84.3 million. This has enabled Town Councils to keep their monthly S&CC very affordable. For households who are in genuine financial difficulty - and there are some - most Town Councils assist by allowing these

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households to pay their S&CC arrears in instalments. They may also approach the Community Development Councils or other social service agencies for assistance. However, for those who have the means to pay but refuse to, eg, they give higher priority to paying other expenses, Town Councils will need to step up their enforcement actions.

The Government has also helped HDB households cope with the economic recession and GST increase by helping them pay part of their S&CC through the monthly S&CC rebates and S&CC waivers. The Government will continue to grant S&CC rebates to HDB households until 31st March 2008, as part of the GST-offset package.

Dr Chong Weng Chiew (Tanjong Pagar): The fact that there are different committee members managing different Town Councils, would the Ministry consider setting a guideline as to the standardisation of the collection of all these arrears for the different Town Councils?

Assoc. Prof. Koo Tsai Kee: Sir, the Ministry keeps a watching brief on the Town Councils' operations but, ultimately, the Town Councils must be responsible for the operations of their own Town Councils. The Ministry of National Development looks at the arrears and flashes the warning sign to some Town Councils. It is up to the Town Councils to take enforcement actions.