SPEECH BY MR MAH BOW TAN,MINISTER FOR NATIONAL DEVELOPMENT, AT ON HDB UPGRADING PROGRAMMES DURING THE COMMITTEE OF SUPPLY DEBATE, 3 MARCH 2006, 5.15 PM

SPEECH BY MR MAH BOW TAN,MINISTER FOR NATIONAL DEVELOPMENT, ON HDB UPGRADING PROGRAMMES DURING THE COMMITTEE OF SUPPLY DEBATE, 3 MARCH 2006, 5.15 PM

S/N

1.

Last year, I informed Members of the various measures MND would take to complete the Lift Upgrading Programme in 10 years i.e. by 2014, for eligible HDB blocks. Various Members have raised questions related to the LUP. Let me now give an update on the progress that we have made over the past year.

2.

Firstly, we have stepped up the pace of upgrading. We selected 64 precincts (which is about 480 blocks) for upgrading in FY05. This is a significant increase over the 46 precincts selected in FY04 and the 24 precincts selected in FY03. As an indication of the progress that we have made, about 2,500 eligible blocks are awaiting selection for the LUP, compared to more than 3,000 blocks a year ago.

3.

Of the 64 precincts selected in FY05, 6 were for MUP, 15 were for IUP Plus and 43 were for LUP. To make better use of our upgrading budget, we are selecting more precincts for the LUP and IUP Plus each year, instead of MUP.

4.

Secondly, to stretch every LUP dollar and ensure that as many residents as possible can benefit from lift upgrading, we introduced a cost cap of $30,000 per benefiting unit for the LUP. Blocks are eligible for the LUP if they do not exceed the cap. The cost cap is necessary because the cost of lift upgrading can be very expensive. Even with the cost cap, about 90% of blocks will benefit from the LUP. Lift upgrading has been extended to 232 low-rise blocks meeting the cost cap thus far. 73 of these low-rise blocks have successfully polled for LUP. The support levels ranged from 78% to 100%. Polling for the remaining precincts will be conducted over the next few months.

5.

Thirdly, we have given Town Councils the go-ahead to carry out their own lift upgrading works for some 100 blocks under the Town Council-Lift Upgrading Programme (TC-LUP). This will help speed up lift upgrading in HDB estates. Town Councils can schedule and prioritise their blocks for lift upgrading based on their residents’ needs.

6.

Fourthly, as I have recently announced, HDB will be using new technologies and construction methods to save cost and time. For example, machine-roomless lifts [MRLs are lifts where the machines and controllers are mounted on the lift car, unlike current lifts where there is a machine room on top of the lift shaft] will significantly reduce cost and time, without compromising on performance, capacity and safety. Residents will pay up to 20% less for their share of the LUP costs, and they get their lifts faster, by 6 months (from 33 to 27 months from point of polling to LUP completion).

7.

MRLs will be used for both high- and low-rise blocks, so long as it is technically feasible and cost-effective to do so. Around 95% of the blocks selected for the LUP and IUP Plus in FY05 will benefit from the use of MRLs.

8.

We have made significant progress in the LUP. We are on track to fulfilling our promise of bringing the LUP to all eligible blocks in 10 years’ time. Taking into account the capacity of the industry and the funds available, I believe that 10 years is a realistic target. The 10-year target is, in fact, already a stretched target, as our original target was to complete the LUP in 15 years.

S/N
1.	Last year, I informed Members of the various measures MND would take to complete the Lift Upgrading Programme in 10 years i.e. by 2014, for eligible HDB blocks. Various Members have raised questions related to the LUP. Let me now give an update on the progress that we have made over the past year.
2.	Firstly, we have stepped up the pace of upgrading. We selected 64 precincts (which is about 480 blocks) for upgrading in FY05. This is a significant increase over the 46 precincts selected in FY04 and the 24 precincts selected in FY03. As an indication of the progress that we have made, about 2,500 eligible blocks are awaiting selection for the LUP, compared to more than 3,000 blocks a year ago.
3.	Of the 64 precincts selected in FY05, 6 were for MUP, 15 were for IUP Plus and 43 were for LUP. To make better use of our upgrading budget, we are selecting more precincts for the LUP and IUP Plus each year, instead of MUP.
4.	Secondly, to stretch every LUP dollar and ensure that as many residents as possible can benefit from lift upgrading, we introduced a cost cap of $30,000 per benefiting unit for the LUP. Blocks are eligible for the LUP if they do not exceed the cap. The cost cap is necessary because the cost of lift upgrading can be very expensive. Even with the cost cap, about 90% of blocks will benefit from the LUP. Lift upgrading has been extended to 232 low-rise blocks meeting the cost cap thus far. 73 of these low-rise blocks have successfully polled for LUP. The support levels ranged from 78% to 100%. Polling for the remaining precincts will be conducted over the next few months.
5.	Thirdly, we have given Town Councils the go-ahead to carry out their own lift upgrading works for some 100 blocks under the Town Council-Lift Upgrading Programme (TC-LUP). This will help speed up lift upgrading in HDB estates. Town Councils can schedule and prioritise their blocks for lift upgrading based on their residents’ needs.
6.	Fourthly, as I have recently announced, HDB will be using new technologies and construction methods to save cost and time. For example, machine-roomless lifts [MRLs are lifts where the machines and controllers are mounted on the lift car, unlike current lifts where there is a machine room on top of the lift shaft] will significantly reduce cost and time, without compromising on performance, capacity and safety. Residents will pay up to 20% less for their share of the LUP costs, and they get their lifts faster, by 6 months (from 33 to 27 months from point of polling to LUP completion).
7.	MRLs will be used for both high- and low-rise blocks, so long as it is technically feasible and cost-effective to do so. Around 95% of the blocks selected for the LUP and IUP Plus in FY05 will benefit from the use of MRLs.
8.	We have made significant progress in the LUP. We are on track to fulfilling our promise of bringing the LUP to all eligible blocks in 10 years’ time. Taking into account the capacity of the industry and the funds available, I believe that 10 years is a realistic target. The 10-year target is, in fact, already a stretched target, as our original target was to complete the LUP in 15 years.