# Media Factsheet - Town Councils (Amendment) Bill 2017 - **Source:** Ministry of National Development - **Published:** 2017-02-06T09:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/media-factsheet---town-councils-amendment-bill-2017 - **Topics:** Government & Policy ## Featured rationale Stronger oversight and ring-fenced lift funding may improve estate-management accountability and maintenance planning, potentially supporting resident confidence in public housing operations. ## AI summary The Town Councils (Amendment) Bill 2017 strengthens governance through conflict-management standards, a separate Lift Replacement Fund, financial projections, inspections and rectification orders. ## Original article The Town Councils (Amendment) Bill 2017 will be introduced in Parliament today for first reading by Senior Minister of State for National Development, Mr Desmond Lee. Background The Town Councils Act was enacted in 1989 to give elected Members of Parliament (MPs) significant autonomy and latitude to run the Town Councils so that they could decide how best to serve their residents’ needs and be directly accountable to their constituents for their performance. The current legislative framework sets out broad rules to ensure proper governance of TCs and interest. Within this framework, TCs, run by the elected MPs, operate autonomously in the management of their respective estates. For example, each TC has the power to make its own by-laws, set its service & conservancy charges (S&CC), and determine its enforcement policy. Overview of the Bill The Bill preserves the core principles of autonomy and latitude that underpin the current while strengthening the overall governance and regulatory framework of TCs. While TCs are autonomous, their powers are not unfettered and should not be left unchecked. The Bill will enable the regulator, the Ministry of National Development (MND), to exercise more effective oversight of TCs on residents’ behalf, without undermining the TCs’ roles and responsibilities in managing their towns. Notably, the Bill will improve transparency and performance, and require greater accountability from TCs and their key management personnel, to give residents the confidence that their housing estates are properly managed, and that S&CC monies are put to good use for their benefit. This is necessary to protect public/residents’ interests and hold TCs to account for the management of the millions of dollars they receive from residents and the Government. The key features of the Bill are as follows (see Annex for summary ): a) Clarify the roles and functions of TCs The Bill gives greater clarity to the functions of TCs, and their roles vis-à-vis HDB and other public agencies to ensure that all parties are better aligned in how they carry out their statutory functions. b) Improve TC governance and accountability The Bill sets out the minimum standards for how conflicts of interest should be managed within the and improves transparency by requiring key TC appointments to be made known to the public. The Bill also allows MND to make rules in relation to the governance of TCs such as requiring TCs to disclose their compliance with governance and to make orders on post-election transitions for TCs to ensure a smooth handover and any service disruptions to residents. c) Strengthen financial management in TCs The Bill requires TCs to establish a separate Lift Replacement Fund to ring-fence funds for lift-related replacement and allows MND to require TCs to prepare and submit financial projections. d) Enhance MND’s regulatory oversight The current Act does not provide MND with any levers to ensure compliance from TCs, with the exception of offence provisions in three narrow areas[1]. The Bill empowers MND to appoint inspectors to conduct reviews and investigations on TCs’ compliance with the TCs Act and its Rules, and to issue rectification orders to TCs for non-compliance where warranted. MND held a public consultation on the proposed changes to the Act from 18 Oct to 17 Nov 2016. We received feedback from TCs and members of the public through emails, mainstream and online media reports, as well as discussion forums such as REACH. We thank all respondents who have taken the time to contribute to the public and have considered the suggestions carefully in the finalisation of the Bill (see link for MND’s responses to the feedback received). Issued by: Ministry of National Development Date: 6 February 2017 [1] The three areas are the misuse of the TC sinking and operating funds, the contravention of TC-Lift Upgrading Programme Rules, and the failure to provide information to the auditor without any reasonable cause. ## Chinese translation > Translation model: grok_cli ### 媒体情况说明书——《2017年市镇理事会（修订）法案》 《2017年市镇理事会（修订）法案》将于今日在国会提出，由国家发展部高级政务部长李智陞先生进行一读。 背景 《市镇理事会法令》于1989年制定，旨在赋予民选国会议员（MP）显著的自主权与运作空间，以管理市镇理事会，使其能够决定如何最好地满足居民需求，并就其表现直接向选民负责。 现行立法框架订下广泛规则，以确保市镇理事会（TC）的妥善管治及利益。在此框架内，由民选国会议员管理的市镇理事会，在各自产业管理上自主运作。例如，各市镇理事会有权制定本身的附则、设定服务与保育费（S&CC），并决定其执行政策。 法案概览 该法案保留支撑现行制度的自主权与运作空间核心原则，同时加强市镇理事会的整体管治与监管框架。市镇理事会虽属自主，但其权力并非不受约束，也不应无人监督。该法案将使监管机构国家发展部（MND）能够代表居民对市镇理事会实施更有效的监督，同时不削弱市镇理事会在管理市镇方面的角色与责任。 值得注意的是，该法案将提升透明度与表现，并要求市镇理事会及其主要管理人员承担更大问责，使居民有信心其住屋产业得到妥善管理，而服务与保育费款项亦被妥善用于居民利益。这是为保障公众／居民利益，并就市镇理事会管理来自居民及政府的数百万款项向其问责所必需的。 该法案的主要特点如下（摘要见附件）： a) 厘清市镇理事会的角色与职能 该法案更清晰界定市镇理事会的职能，及其相对于组屋（HDB）及其他公共机构的角色，以确保各方在履行法定职能时更能协调一致。 b) 改善市镇理事会管治与问责 该法案订明如何在内部管理利益冲突的最低标准，并通过要求向公众公开主要市镇理事会任命以提升透明度。该法案亦允许国家发展部就市镇理事会管治制定规则，例如要求市镇理事会披露其管治合规情况，并就选举后过渡作出命令，以确保市镇理事会顺利交接，避免对居民造成任何服务中断。 c) 加强市镇理事会财务管理 该法案要求市镇理事会设立独立的电梯更换基金，以专项预留电梯相关更换资金，并允许国家发展部要求市镇理事会编制并呈交财务预测。 d) 加强国家发展部的监管监督 现行法令除三个狭窄领域的罪行条文外，并未为国家发展部提供任何杠杆以确保市镇理事会合规[1]。该法案授权国家发展部委任检查员，就市镇理事会遵守《市镇理事会法令》及其规则的情况进行审查与调查，并在有充分理由时向市镇理事会发出纠正令。 国家发展部于2016年10月18日至11月17日就拟议的法令修订展开公众咨询。我们透过电邮、主流及网络媒体报道，以及REACH等讨论平台，收到市镇理事会及公众的反馈。我们感谢所有花时间参与公众咨询的回应者，并已在敲定法案时仔细考虑有关建议（有关国家发展部对所收反馈的回应，见链接）。 发布机构：国家发展部 日期：2017年2月6日 [1] 这三个领域是：滥用市镇理事会储备金与营运基金、违反市镇理事会电梯提升计划规则，以及无合理理由未能向审计员提供资料。