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15-11-2024, 03:14 PM
Here are some roundabout answers from the article "Proposals to modify hawker stall rental system may lead to higher rents: Koh Poh Koon | The Straits Times":
1. On the Impact of Rent on Hawkers' Overall Costs:
- Roundabout Answer: Dr. Koh highlights that rental costs make up less than 10% of operating costs for hawkers, with food ingredients accounting for nearly 60% and manpower costs taking up about 20%.
- Why it's Roundabout: This response avoids directly addressing the PSP's concerns about the impact of high rents on hawkers. Instead, it focuses on the relative proportion of rental costs compared to other expenses, implying that rent is not the primary concern.
2. On the Tender System and Rent Determination:
- Roundabout Answer: Dr. Koh defends the current tender system, stating that it's "open, transparent and straightforward" and "enables market mechanisms to work at hawker centres." He also emphasizes that the government doesn't use rent for cost recovery and that bidders can obtain stalls at low rental rates, with some even winning bids at $1.
- Why it's Roundabout: This response deflects from the PSP's proposal to move away from the tender system. Instead, it focuses on the perceived benefits and fairness of the current system, highlighting examples of low bids and the government's lack of profit motive.
3. On the Effectiveness of Existing Measures to Moderate Rents:
- Roundabout Answer: Dr. Koh lists measures taken to moderate rents, such as disallowing subletting and staggering the downward adjustment of rental rates. He also points to high occupancy rates and the fact that more than four in 10 bidders secured their bids below the assessed market rent.
- Why it's Roundabout: This response avoids directly addressing the PSP's concerns about the effectiveness of these measures. Instead, it focuses on actions taken and positive outcomes, implying that the existing system is working well enough.
4. On the PSP's Proposed Fixed-Rent Model:
- Roundabout Answer: Dr. Koh raises practical challenges with the PSP's proposed fixed-rent model based on gross turnover, such as the need for point-of-sale systems and the difficulty in determining a fair fixed rent. He also argues that using the assessed market rent would result in higher costs for many current hawkers.
- Why it's Roundabout: This response avoids directly addressing the merits of the PSP's proposal. Instead, it focuses on perceived difficulties and potential negative consequences, implying that the PSP's idea is impractical or unfair.
5. On the PSP's Proposed Ballot System for Stall Allocation:
- Roundabout Answer: Dr. Koh argues that a ballot system could lead to frivolous applications and excess demand for stalls at popular locations, potentially disadvantaging prospective hawkers with genuine intent and patrons.
- Why it's Roundabout: This response avoids directly addressing the PSP's proposal for a more equitable allocation system. Instead, it focuses on potential drawbacks and unintended consequences, implying that the PSP's idea is flawed.
Overall: The article highlights a disagreement between the PSP and the government regarding the best approach to managing hawker stall rents. While the government acknowledges that there is no perfect system, it appears to be more cautious and less receptive to the PSP's specific proposals, focusing on the perceived benefits of the existing system and potential drawbacks of the PSP's suggestions.
1. On the Impact of Rent on Hawkers' Overall Costs:
- Roundabout Answer: Dr. Koh highlights that rental costs make up less than 10% of operating costs for hawkers, with food ingredients accounting for nearly 60% and manpower costs taking up about 20%.
- Why it's Roundabout: This response avoids directly addressing the PSP's concerns about the impact of high rents on hawkers. Instead, it focuses on the relative proportion of rental costs compared to other expenses, implying that rent is not the primary concern.
2. On the Tender System and Rent Determination:
- Roundabout Answer: Dr. Koh defends the current tender system, stating that it's "open, transparent and straightforward" and "enables market mechanisms to work at hawker centres." He also emphasizes that the government doesn't use rent for cost recovery and that bidders can obtain stalls at low rental rates, with some even winning bids at $1.
- Why it's Roundabout: This response deflects from the PSP's proposal to move away from the tender system. Instead, it focuses on the perceived benefits and fairness of the current system, highlighting examples of low bids and the government's lack of profit motive.
3. On the Effectiveness of Existing Measures to Moderate Rents:
- Roundabout Answer: Dr. Koh lists measures taken to moderate rents, such as disallowing subletting and staggering the downward adjustment of rental rates. He also points to high occupancy rates and the fact that more than four in 10 bidders secured their bids below the assessed market rent.
- Why it's Roundabout: This response avoids directly addressing the PSP's concerns about the effectiveness of these measures. Instead, it focuses on actions taken and positive outcomes, implying that the existing system is working well enough.
4. On the PSP's Proposed Fixed-Rent Model:
- Roundabout Answer: Dr. Koh raises practical challenges with the PSP's proposed fixed-rent model based on gross turnover, such as the need for point-of-sale systems and the difficulty in determining a fair fixed rent. He also argues that using the assessed market rent would result in higher costs for many current hawkers.
- Why it's Roundabout: This response avoids directly addressing the merits of the PSP's proposal. Instead, it focuses on perceived difficulties and potential negative consequences, implying that the PSP's idea is impractical or unfair.
5. On the PSP's Proposed Ballot System for Stall Allocation:
- Roundabout Answer: Dr. Koh argues that a ballot system could lead to frivolous applications and excess demand for stalls at popular locations, potentially disadvantaging prospective hawkers with genuine intent and patrons.
- Why it's Roundabout: This response avoids directly addressing the PSP's proposal for a more equitable allocation system. Instead, it focuses on potential drawbacks and unintended consequences, implying that the PSP's idea is flawed.
Overall: The article highlights a disagreement between the PSP and the government regarding the best approach to managing hawker stall rents. While the government acknowledges that there is no perfect system, it appears to be more cautious and less receptive to the PSP's specific proposals, focusing on the perceived benefits of the existing system and potential drawbacks of the PSP's suggestions.
