Update on Review of Town Councils Act 1988 to Include Escalator Cyclical Works in Rules

Ms Sylvia Lim asked the Minister for National Development whether the Ministry will review the Town Councils Act 1988 and Town Councils (Disbursement of Moneys from Sinking Funds) Financial Rules 2020 so as to include cyclical works relating to escalators as expenses payable from the Lift Replacement Fund (LRF) instead of the Sinking Fund.

Town Councils (TCs) are required to establish and maintain a dedicated Lift Replacement Fund (LRF) to ensure that sufficient funds are set aside for the replacement of their lifts. Lift replacements works may be infrequent but involve heavy drawdown of funds when they are due, as lifts built in the same period will generally require replacement around the same time.

There are currently no plans to expand the scope of LRF to cover cyclical works relating to escalators. Escalator replacement works will continue to be funded from TCs' Sinking Funds, which have been set aside for such long-term non-lift related cyclical replacement works. The Government will continue to review the framework regularly to ensure that it remains relevant.