Committee of Supply debate (Ministry of National Development), 5 Mar 2024
The Lift Replacement Fund (LRF) was introduced during the 2017 amendment to the Town Councils Act. It addresses the substantial, deferred costs associated with lift renewals in our ageing estates. This provision ensures minimal disruption due to lift breakdowns for our residents, notably the elderly, young children and those with mobility challenges.
Nonetheless, the current apportionment of Service and Conservancy Charges (S&CC) and government grants — 26% to the Sinking Fund (SF) and 14% to the LRF — may be precipitating a skewed emphasis towards the LRF. Looking at the 17 town councils’ latest annual reports, I notice that for many of them, their LRF is expanding at a significantly faster pace compared to their SF.
The stipulated use of the LRF may be unduly restrictive. Currently, expensive lift components like the automatic rescue device, the main controller PCB, the emergency battery operated power supply and the uninterrupted power supply can only utilise the Routine Fund, despite their considerable capital expense.
Hence, I would like to put forth three proposals to MND:
First, rebalance the funding distribution between the Sinking Fund and LRF, slightly increasing the SF’s proportion and reducing the LRF’s proportion.
Second, broaden the permissible applications of the LRF to encompass all lift components with a lifespan exceeding 10 years.
And third, permit Town Councils to transfer funds between LRF and SF to fund necessary cyclical works without compromising the original intent of setting aside adequate reserves for the two funds.
These recommendations seek a more efficient balance between addressing current exigencies and future preparations, assuring all residents benefit from dependable lift and escalator facilities.
