Calling on the Government to review its policies, WP chief Pritam Singh said they must be “fit for purpose in this heightened inflationary environment”.
Mr Singh and fellow Aljunied GRC MP Sylvia Lim proposed tiered pricing for both, saying that it would help manage costs and also encourage conservation. He proposed that the Government look at introducing a more finely tiered tariff structure, coupled with a graduated water conservation tax, so that households that consume more water cross-subsidise those that consume less.
The differential charges based on timing will also reduce the peak-hour load, which is what strains the grid and results in higher costs of production, she added.Responding to the proposals, Acting Minister for Transport Chee Hong Tat, who is also Senior Minister of State for Finance, said water is priced to reflect its scarcity, so as to encourage its sustainable and prudent use.
The Government’s approach is to price water fully, then provide targeted and tiered support though U-Save rebates to those who need it most, he said.He said the idea of pricing electricity based on the time of use was something the Government had already announced that it is exploring, noting that it is an accurate reflection of the actual cost of producing electricity during different periods of the day.
Mr Gerald Giam , citing increases in public transport fares, said the Government should set up a non-profit firm that would be able to provide a more efficient and affordable service for both commuters and taxpayers. To this, Mr Chee said that nationalising and taking away the profit element does not guarantee better outcomes for commuters.
He proposed stopping the practice of reimbursing people the book value of their COEs when they deregister their cars early. Housing affordability remains an issue even with the new housing classification system slated for the second half of 2024. The measures could potentially add further upside pressure to resale HDB flat prices in some of the Plus and Prime locations, he added.