ARREARS PROBLEM IN TOWN COUNCILS : A CASE STUDY

Abstract

Arrears in service and conservancy charges have become one of the biggest administrative problems for town coun- cils ever since they started taking over the management of housing estates from the Housing Development Board in 1989. If the amount of arrears is not controlled, it will result in a serious cash flow problem with adverse conse- quences for the town councils in managing and maintaining their estates. It is important that the problem be explored from two aspects, one from the viewpoint of the town councils and the other from the point of view of the residents who are in arrears. It is found that the arrears management as practiced by the town councils is a long and costly process. Further- more, town councils have to restrain from fully implement- ing their powers due to social, political and economic reasons. It is crucial to identify the underlying reasons that cause residents to delay their service and conservancy charges so that actions can be taken accordingly. The main causes of arrears are discovered to be heavily influenced by the socio-economic characteristics of the residents who are in arrears. Hence, this study aims to discuss and highlights the main issues of arrears of service and conservancy charges in town councils.