ST : Can Potong Pasir afford lift upgrade?

Nov 13, 2010

Can Potong Pasir afford lift upgrade?

PAP grassroots adviser says no but opposition MP says yes

By Teo Wan Gek

A DING-DONG battle of words has erupted in Potong Pasir over whether there is enough money to provide lift upgrading for 22 blocks of flats in three precincts.

Mr Sitoh Yih Pin, who announced five days ago the Lift Upgrading Programme (LUP) for the second batch of flats in

the ward, is now expressing doubts that its town council has enough in its coffers to upgrade the lifts.

But Mr Chiam See Tong, the opposition MP of the constituency, feels otherwise.

'We definitely have enough money. The programme won't start so soon. Meanwhile, we are collecting money through service and conservancy charges,' he told The Straits Times after his Thursday Meet-the-People Session.

But Mr Sitoh, who is the People's Action Party's (PAP) grassroots adviser in the opposition-held constituency, said: 'Given the state of the Potong Pasir Town Council's balance sheet, unless there is a dramatic increase suddenly, it is impossible that it will be able to afford the LUP.'

Citing its latest annual report, Mr Sitoh, who is an accountant, pointed out that the council has $4.2 million in its residential sinking fund - the pool of money that can be used to co-fund the LUP in all its six precincts.

On average, a precinct needs $2 million to $3 million for lift upgrading.

With the 22 blocks in three precincts, the total would add up to between $6 million and $9 million.

This is on top of the first precinct with nine blocks that was offered LUP last year. At that time, Mr Sitoh had already raised questions about the town council's ability to pay for the LUP in all its precincts.

Other than LUP, money in the sinking fund can be used to pay for cyclical maintenance works, such as re-roofing and rewiring.

Mr Sitoh said Potong Pasir had not had any major rewiring exercise in the last 26 years. It is 'a big-ticket item that could run into the millions', he added.

If its financial capability was in doubt, then why did he make the announcement, only to dash residents' hopes so soon after?

He gave a reply that indicated he could be standing in the ward where he was defeated twice by Mr Chiam, who now plans to hand it to his wife to contest in the next election as he moves to contest a group representation constituency (GRC).

Mr Sitoh told The Straits Times: 'Assuming the general election is within the next six months, whoever is elected MP of Potong Pasir will have to solve the problem.

'If I am the candidate and am elected MP of Potong Pasir, this will become my problem.'

He also said that from Monday, for one week, he will make daily door-to-door visits to residents of the first nine blocks to be offered LUP, to explain and get feedback on the upgrading, which has not been finalised.

The visits will not end after the one week, he said, and added: 'You will see me there every day for a long, long time.'

The LUP is heavily subsidised by the Government, with residents and town councils each co-paying between 5 per cent and 12.5 per cent of the cost.

Meanwhile, the other opposition-held ward to be offered LUP is in a healthier financial state.

Hougang's latest financial statement shows it has $17.2 million in its residential sinking fund for its seven precincts.

Its PAP grassroots adviser Eric Low said last night that the Government will give a subsidy of $9.5 million to upgrade the lifts in the first batch of six blocks, while the town council's share of the cost will be 'just under a million'.

Earlier, the ward's opposition MP Low Thia Khiang of the Workers' Party told The Straits Times that the Housing Board had estimated his town council's share in the LUP cost to be about $17 million for all its seven precincts.

Recently, it gave the council about $5 million in a one-off financial assistance for LUP, he added, an aid given to all town councils.

wangekt@sph.com.sg

Additional reporting by Elgin Toh