THE state is looking at imposing surcharge on super condominiums, and the amount collected will be used to build affordable housing for the people, said Penang Chief Minister Lim Guan Eng.

He said such a move would help the state government to absorb the cost of building affordable homes.

“This will come under the charge of Penang Housing Board which will be established on July 1,” he said in his winding up speech at the state assembly.

At this juncture, Muhammad Farid Saad (BN-Pulau Betong) stood up and urged Lim to come up with a mechanism meant to compensate the people whose houses have to be demolished to make way for development.

To this, Lim said the state would ensure that nobody, including the landowners, squatters or developers, is short-changed even though they are still coming up with a mechanism on this issue.

“If the imposing of a charge on super condominiums for the construction of affordable housing was implemented in the state, it would also be a first in the country.

“The state was studying the move where the amount collected would be used to supply and provide affordable housing to the people in Penang.

“We are imposing a contribution, not a tax. We cannot impose taxes,” he said in a press conference after the state assembly sitting.

He added: “We don’t know the price to be imposed. Maybe before the occupation certificate (OC) is issued, they (the developer) will have to pay a certain contribution if they build houses above a certain limit.”

State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai and Local Government and Traffic Management Committee chairman Chow Kon Yeow have been directed to look into the move.

Earlier, the water conservation surcharge became a matter of contention again between Lim and Datuk Arif Shah Omar Shah (BN-Seberang Jaya).

The latter said the surcharge would be unfair to big households and would be a burden to the head of the family.

To this, Lim said the surcharge of 24 sen per 1,000 litre for domestic users who use more than 35,000 litres of water was meant to encourage Penangites to conserve water.

“The Penang Water Supply Corporation (PBAPP) had carried out studies on the matter before deciding on the implementation.

“Since the implementation of surcharge, the average usage of water for domestic users had dropped to 286 litres from 291 litres per day. We hope to achieve the national average of 202 litres per day,” he said.

Source: The Star