(Below is a comment on my post. Did PAP lie? You decide.)
I can say without a shadow of doubt that PAP is LYING when it says current water price is not reflecting current cost of production. Since 1990 onwards, PAP has NOT provided any public utility that is priced below cost. The constant price increases for electricity & gas tariffs show this to be the case. In fact the current water price + taxes are already MORE THAN cover the current cost of producing potable water AND cost of processing waste water as well.
1. Water Tariff — covers cost of producing potable water.
2. Waterborne Fee — covers cost of processing waste water.
3. Sanitary Appliance Fee — covers cost of processing our shit & urine (in fact this is payment to 2 profit-making companies: SembWaste & Veolia).
** So far the above 3 items fully cover the water usage, waste water, shit & urine.
4. Water Conservation Tax — this is a penalty on water usage, currently 30% of Water Tariff.
5. GST — applied on ALL items above.
** Items 4 and 5 are already above & beyond the cost of water, shit, urine etc.
So where’s the justification for price increase to cover increase cost of water production?!?!
THE REAL REASON:-
PAP’s intention is to extract money from the people NOW in order to pay for FUTURE building of new desalination plants, new newater plants, new water treatment plants, R&D in water treatment, new sewerage plants, new underground water pipes, salaries & bonuses of extra staff & scientists & scholars, etc etc. And to do this money extraction as fast as possible.
An HONEST govt will come out & tell the people this is EXACTLY why the increase is required, instead of trying to BULLSHIT the people like they’re 3 yr old kids.
HONESTY will require accurate figures, costs & prices to be shown for past, present & future. Whether current & future projected govt revenue can cover all those new water plants, R&D, staffing etc or not. If future govt revenue cannot cover, then explain to the people why need to increase tax collection somewhere e.g. water tariff and/or water conservation tax. And proper analysis & justification for the amount of increase. Why 30%?!?! Pluck from the air?!?!?
Want to collect enough money in the shortest possible time and the rest of the money go into GIC & Temasek?!?!?
* The author blogs at LikeTatAlsoCanMeh.