Public car parking profits increase to $700m?

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June 30, 2016

Public car park charges increase from December

I refer to the article “Public car park charges in Singapore to increase from December” (Channel NewsAsia, Jun 30).

20% increase?

It states that “For public car parks outside of the restricted zone or outside designated areas close to the restricted zone, the parking charge will be raised by S$0.10 from S$0.50 to S$0.60 per half hour. This applies to most residential areas in Singapore.

For public car parks within the restricted zone or within designated areas close to the restricted zone, the parking charge will increase by S$0.20 from S$1 to S$1.20 per half hour. This includes areas such as the CBD, Orchard, Outram and Rochor.”.

This is an increase of 20 per cent ($0.60 divided by $0.50).

23 to 27% increase?

SEASON PARKING RATES UP BY S$15 TO S$30

As to “Season parking rates in HDB car parks will go up as well, with non-residents and those applying for season parking for a second or subsequent car paying more.

For residents’ first parking lot, the cost of season parking will increase by S$15 for surface car parks from S$65 to S$80 per month, and by S$20 for sheltered car parks from S$90 to S$110 per month.

For non-residents and residents getting season parking for a second and subsequent car, the rate will increase by S$25 for surface car parks to S$90 per month and by S$30 for sheltered car parks to S$120 per month” – this is an increase of 23 per cent ($80 divided by $65) and up to 26.7 per cent ($95 divided by $75).

40% increase?

For residents’ 2nd and subsequent car park lots in the same household and non-residents – the increase is as much as 40 per cent ($105 divided by $75).

Who’s subsidising who?

As to the remarks “We don’t want a situation where, inadvertently, we subsidise car parks — meaning to say, non-car owners subsidising car owners” – as the parking increase may likely be passed on to consumers by businesses – isn’t it more like both car owners and non-car owners subsidising the government’s coffers?

$576m profits?

According to an article in allsingaporestuff.com – the net car parking profits (income less expenses) of the HDB and URA was $575.7 million for FY14/15.

$700m profits after the increase?

With the subject increase of about 20 per cent – does it mean that the profits may increase to about $690 million ($575.7 x 120%)?

As the car park charges increase is up to 40 per cent – perhaps the profits may be over $700 million.

Leong Sze Hian

 

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.