Rising costs but no increase in charges

Residents urged to play their part to contain rising costs due to inflation and Lift Upgrading Programme
by Woo Sian Boon, TODAY, 30 May 2012

Earlier this month, a newsletter distributed by the Tanjong Pagar Town Council (TPTC) - detailing its rising bills, such as those for maintenance, cleaning and electricity - sparked concerns that service and conservancy charges (S&CC) would be raised soon. 

And even as other town councils contacted by TODAY also cite rising costs, Tanjong Pagar Town Council chairman Lily Neo stressed that an increase in S&CC was not on the cards.

Dr Neo, a Member of Parliament (MP) for Tanjong Pagar Group Representation Constituency, said the newsletter had "nothing to do with" any impending rise in S&CC. Its objective was to "keep residents informed", she said.

Dr Neo added: "A circular like that … explains to residents what their town councils are doing and what our limitations are. We're finding ways to save costs and, in order to do that, we need residents' cooperation (and) understanding."

For example, she noted that cleaning costs have increased "because the quota for foreign workers is a lot less".

"So if they can help us to maintain cleanliness, then in certain areas, we don't have to clean two or three times a day. Just make sure that all the litter goes into the dustbin," she said.

Dr Neo also highlighted that the Lift Upgrading Programme (LUP), coupled with an increase in the price of electricity, has led to rising costs.

"Lift maintenance is an issue (because) our lifts have doubled in numbers. Also ... almost every building has lifts that go to every floor," she said.

Tanjong Pagar residents TODAY spoke to said they can accept a rise in S&CC as long as it is warranted.

Mr Tan S R, a 31-year-old education officer, added: "Town councils face cost problems too. Just as long as the raise is justified and, of course, they need to maintain the high standards of how they are running the estate now."

A check with other town councils showed that they are also facing cost pressures.

For example, since 2004, Bishan-Toa Payoh Town Council's cleaning costs have gone up by 24 per cent, while lift maintenance costs have increased by 56 per cent.

For Sembawang-Nee Soon Town Council, the cost of lift maintenance has increased 7 per cent from about S$8 million in 2009.

Also, its water and electricity bills - which amounted to almost S$23 million in 2009 - have spiked by 22 per cent over the last three years.

Holland-Bukit Panjang Town Council spokesperson Dorothy Cheung said its cleaning contract rates have risen by an average of 20 per cent since 2009.

Over the same period, lift maintenance cost also increased, on average, by a similar percentage.

Bukit Panjang MP Teo Ho Pin, who is also the coordinating chairman for PAP town councils, said that raising S&CC is an "on-and-off" topic which is discussed during meetings.

He added that all 14 PAP town councils have been facing cost pressures due to inflation, the increase of tender prices and the LUP.

Technology helps to lower waste-collection fee hikes
By Joanne Chan, Channel News Asia, 1 Jun 2012

Waste management companies say an increase in refuse collection fees is unavoidable, due to rising operating costs. However, they say that productivity and technology gains have helped to moderate fee hikes.

They are also promising better service standards.

The National Environment Agency had announced on Tuesday that waste collection fees for households in Pasir Ris, Tampines and Bedok will go up from July, and other estates may follow suit.

The agency said that it is working with the industry to manage fee increases by improving productivity and helping companies reap economies of scale.

Public waste collector Veolia - which is the public waste collector for households in Pasir Ris, Tampines and Bedok - started using trash compactors, known as Minimatics, in HDB estates last year.

A single truck can collect waste from up to seven Minimatics, a three-fold increase in load over traditional compactors.

Previously, mobile compactors with a five-tonne capacity were used in refuse bin centres. And each centre required one garbage truck. With the Minimatics, a single refuse collection truck with a 14-tonne capacity can visit five to seven locations in one trip, before heading to the incinerator.

Veolia said the Minimatics are a better fit for some bin centres which serve fewer households, and may not have been an efficient use of the bigger compactors in the past. The fewer trucks have also helped the company to reduce its carbon footprint.

The improved workflow has also led to productivity gains.

Jerome Baco, country manager (Singapore) for Veolia Environmental Services, said: "We have reduced our fleet by one-third in terms of number of trucks and associated drivers. So such kind of innovation that brings higher productivity has helped us mitigate the cost."

Veolia has invested some S$10 million in the past year to replace its entire fleet of trucks with more eco-friendly models, which also feature more automation to reduce reliance on manpower. The trucks also emit less smell, reducing the inconvenience to residents and workers.

Even with these measures, prices will go up.

Mr Baco said: "We have faced a significant increase in operating costs, such as fuel for example, just to name one. Fuel has increased by 143% in the last seven years. CPI (cost-price index) has increased, salary as well. Therefore, with such operating cost increases, it is not possible to imagine that the fee would not increase at the same pace."

SembWaste, a subsidiary of Sembcorp, said a key challenge for the industry is "escalating costs", which it has been able to manage through improved productivity.

Aside from leveraging technology, SembWaste has also invested in training for its 600 workers. This not only helps to boost productivity, but also reduces the company's reliance on manpower.

SembWaste added that with more training, employees have more opportunities in the company and can look forward to better pay - good news for an industry often shunned by locals for its hard work and low pay.

Rubbish collection fees to be revised

by Joanne Chan, TODAY, 30 May 2012

By 2015, all households will have to pay a uniform fee to have their rubbish collected, with the amount dependent on whether they live in a Housing and Development Board (HDB) flat or landed property. 

The new fee structure, derived from the weighted average of successful tender bids submitted by public waste collectors, will be progressively rolled out starting from July, said the National Environment Agency (NEA).

Households in Pasir-Ris, Tampines and Bedok will be the first in line, with HDB properties paying S$7, while landed homes will pay S$23.19. 

The amounts will change when the NEA calls for its next tender in a different sector and re-applies its calculations.

Presently, the fees, which differ between estates, range from S$4.03 per HDB flat to S$22.50 for a landed home.

The NEA said that, with several contracts up for renewal over the next few years, the move is aimed at uplifting the waste collection industry.

Moving ahead, waste collection companies will have to meet higher service standards and provide better incentive schemes to encourage households to recycle.