Lui Tuck Yew
Singapore
“What they do is that they report to me on a three-monthly basis. After the December 2011 incident, I felt that the way LTA was overseeing the operators needed some improvement. In the past, we were looking at the outcomes and the indicators that we get every so often.”
“SMRT has also combed through the tunnels to ensure that there are no other leaks with water dripping onto trackside installations and will be installing data loggers at all traction power substations within the next two months to better monitor the condition of the insulators.”
“But because we think that actually it could have lasted us longer if it was better maintained over the years, therefore, you also take a discount from what the Government would otherwise have to pay. But the formulas are all set out in the White Paper. I believe I have answered the Member's questions.”
“The tight labour market is, indeed, a challenge for the bus industry. To address this, a multi-pronged strategy is needed. To attract more local bus captains, both operators have raised entry level base monthly salaries by about $400 since the Bus Service Enhancement Programme (BSEP) commenced in 2012.”
“Over the past three years, there were 355 cases of fare evasion and 162 cases of passengers assaulting taxi drivers. Passengers found guilty of fare evasion may be fined up to $1,000 and repeat offenders may be fined up to $2,000 or jailed for up to six months, or both.”
“The insolvency of Alpine Bau affected the completion timeline of three stations, namely, Tan Kah Kee, Sixth Avenue and King Albert Park, and their associated tunnels.”
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“BRT systems typically feature off-vehicle fare collection, segregated right-of-way, signal priority, high-frequency operations, and specially-designed buses for quicker boarding and higher capacity. Some cities have implemented BRT as a lower-cost alternative to rail systems (RTS). A BRT system will require substantial additional surface land to accommodate the station platforms, and dedicated and overtaking lanes. Given Singapore's Page: 165 highly urbanised environment, and our existing rail network, our assessment is that a full BRT system is not practical. However, we are incorporating some features that characterise BRT to improve our current bus system. These include signal priority, which grants buses more green time at traffic junctions, and expanding our existing bus priority measures like more bus lanes and the Mandatory Give Way to Buses Scheme.”
“The Walk2Ride programme will expand our network of sheltered walkways by an additional 200km to connect our key public transport nodes to shopping, leisure, commercial and residential developments. The programme generally covers developments within 400m of MRT stations and 200m of LRT stations and bus interchanges, subject to site-specific Page: 161 considerations, and residents of private estates living near these public transport nodes will benefit. Tenders for sheltered walkways around MRT stations in all HDB towns in the northeastern and northwestern parts of Singapore have been called and the contracts are targeted to be awarded in the first quarter of 2014. The detailed construction programme, including the locations of the walkways, will be established by the appointed contractors in consultation with the community.”
“LTA has been monitoring the state of electric vehicle (EV) technology and the costs of EVs as compared to conventional vehicles. EVs can be cleaner and more energy efficient than the typical internal combustion engine car. However, an EV's upfront costs are significantly higher. Even under the enhanced Transport Technology Innovation Development Scheme (TIDES-PLUS), where vehicular taxes are waived, the life cycle cost of an EV in Singapore would likely still be higher as compared to conventional vehicles paying full taxes. Nevertheless, with improved battery technology and economies of scale, EVs could become cheaper over time. We have already started to try out EVs on a limited scale conducted by the multi-agency Electric Vehicle Taskforce (EVTF) co-chaired by EMA and LTA. The EV test-bed is slated to end on 31 December 2013, and will provide additional data for us to formulate our policies and infrastructure plans.”
“The Government has been monitoring developments in the car leasing market. Private hire cars, which are used either for short-term rental or long-term leasing, make up 6.9% of all new car registrations in the seven-month period since the implementation of car loan restrictions in end-February 2013. This figure was 4.7% for the same period last year and 5.6% for 2011. It is unlikely that this moderate growth of the car rental and leasing market has had a significant impact on COE prices.”
“For the rail industry, we have introduced the New Rail Financing Framework (NRFF), starting with the Downtown Line. Under this framework, the Government, instead of the operator, would own all operating assets and the associated risks for major capital asset investments. This allows us to be more responsive to changes in demand and public expectations, and Page: 142 injects greater contestability in the industry by lowering barriers to entry. It will allow us to better work with the operators to deliver a high level of service for rail operations. As for the existing rail licences, over the longer term, we would like to transit both SBST and SMRT to the new framework. For the bus sector, we have started to experiment with competitive tendering on a small scale, with tenders called for City Direct services and Peak Period Short Services. This has given us some room to raise bus service levels and help us consider doing more, larger scale competitive bus tendering in the future, as outlined in our Land Transport Master Plan. With competitive bus tendering, the right to run these routes is given to the bus operator best able to deliver the services specified by the Government at a cost-competitive price, enabling us to deliver better service levels at affordable fares. Separately, we are also working together with the PTOs to trial the Quality Incentive Framework in order to further improve reliability of bus services so that bus commuters can reduce their waiting times at bus stops. This will also help us incorporate a suitable quality incentive component when we embark on competitive bus tendering in the future.”
“Cycling, as a mode of transport, has become increasingly popular in Singapore in recent years, with the majority of these being short trips – as part of the daily journey to work, typically to the MRT station or bus interchange; or short intra-town trips. Hence, our priority is to build up the cycling path network in HDB towns. In our recently-launched Land Transport Master Plan 2013, we have committed to providing about 190 km of cycling paths for all HDB towns by 2020. At the same time, we recognise that there are opportunities to facilitate cycling for longer distances, and one key strategy is to link up cycling paths in HDB towns to the National Parks Board's Park Connector Networks, and to also identify options for inter-town paths and a few trunk cycling routes. In all, we expect to progressively build up and create a comprehensive, island-wide cycling path network that will reach well over 700 km in length over the next 15 years. We will also enhance bicycle parking facilities at MRT stations, with about 3,000 bicycle racks completed by 2014. LTA is working with Town Councils and other agencies to also provide sufficient bicycle parking within HDB estates and at key community amenities.”
“After all, "conciliating and mediating differences" and "fostering friendly relations and mutual help" amongst its drivers are also part of NTA's constitution. LTA will be happy to lend support to Mr Ang and NTA on this and his other ideas. At the end of the day, let me say that we need to find the right balance between the interests of taxi commuters, taxi drivers and taxi companies. The taxi availability framework aims to increase the utilisation of our taxis, so that Page: 112 commuters find it easier to hail a taxi on the road. I know that taxi drivers are trying hard to provide the level of service and availability that commuters want. On the part of taxi companies, I again urge them to work with and help their drivers achieve the service and availability standards, and not expect the drivers to achieve them all on their own. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time. (proc text)]”
“This is exactly the reason why we introduced the taxi availability standards and these were developed after a rigorous consultative process with key stakeholders, including the National Taxi Association (NTA). In fact, the feedback that we have received from taxi drivers who are actually serious about their vocation is that it is not difficult to clock 250 kilometres on their taxis on a regular day, even without a relief driver. This is supported by the data that we have in LTA. But LTA will certainly continue to consult and engage the NTA and other stakeholders as we finetune the availability regime in the years to come. In response to the suggestion by NTA to help match hirers to relief drivers, LTA had launched an online matching portal in June this year. It has seen a fair take-up rate over the last few months and we certainly encourage more hirers and possible relief drivers to make use of this online portal. And we would be happy to work with NTA to promote this further. However, LTA has not incorporated requirements on relief driving, such as measuring how well operators are expanding their relief driver pool or matching hirers with relief drivers, into the LTA's taxi availability standards, as Mr Ang had suggested. We do not want to be so prescriptive as to dictate that taxi companies and drivers must operate a two-shift system because we know that some drivers prefer to drive alone. Mr Ang had made a few other suggestions, including how to manage the pool of relief drivers. I think it is also appropriate for NTA, whose mandate is to look after the interests of all its drivers, to take on a more active role on this issue, and to consider mediating between hirers and relief drivers.”
“Sir, I would like to thank the two Members who have spoken on the Bill, firstly, Mr Pritam Singh and then Mr Ang Hin Kee. Mr Pritam Singh had queries with regard to the relevance of the three-quarter tank rule and, as he had said, many things have changed in the intervening years. But I would also hasten to add that many things still remain relevant. And, certainly, in the context of Singapore, ownership and usage restraints need to be taken together, given the land constraints that we are fully aware of in tiny Singapore. Certainly, while we have caps on the growth rate of the vehicles, in terms of the 0.5% growth that we have allowed for over the few years, usage restraints are equally important. And, hence, the ERP, parking charges, as well as fuel cost, are all matters that a motorist would have to take into consideration. Mr Pritam Singh also mentioned the possible benefits to the SMEs. It is unusual that, actually, we have not heard very much from the SMEs or this matter being raised by them in a concerted fashion. They believe that whatever it is there now, is generally a level playing field for the SMEs and it is something that they accept as part and parcel of doing business here in Singapore. I am not so sure, therefore, that, actually, the three-quarter tank rule that the Member had mentioned really disadvantages Singaporeans from benefiting from the Page: 111 growth that is taking place in Malaysia. Otherwise, we will not have seen the kind of investments that we are seeing taking place, for example, in Iskandar. Let me also thank Mr Ang Hin Kee for his comments on the taxi availability standards and his suggestions to improve taxi services. I certainly share his desire to see better and more reliable services for our commuters.”
“To address this gap, the new section 6B makes it an offence to leave or attempt to leave Singapore knowing that the fuel-measuring equipment in their vehicles has been altered. Finally, clauses 8 and 9 delegate the power to appoint individual LTA employees to cancel traffic ticket notices and compound offences from the Minister for Transport to the Registrar of Vehicles in person. Sir, I beg to move. [(proc text) Question proposed. (proc text)] 6.06 pm”
“Two, taxation for the registration of previously de-registered vehicles. Sir, the second set of changes to the Act empowers LTA to collect the relevant vehicle tax, known as the Additional Registration Fee (ARF), upon the registration of previously de-registered vehicles. Currently, the Act only allows the collection of tax at the point of first registration of every vehicle in Singapore. This precludes the second registration of vehicles, namely, after they had been previously de-registered in Singapore. As a rule, de-registered vehicles are not allowed to be brought back into Singapore. However, an exception was made for de-registered vehicles that qualify for the Classic or Vintage Vehicle schemes, if the relevant taxes are paid. Clause 5 of the Bill amends section 11 to allow ARF to be collected for Page: 105 such vehicles. The third group of amendments, Sir, will improve LTA's effectiveness and efficiency in its operations. Clause 2 allows the LTA to take better enforcement action against car owners who illegally rent out their personal vehicles for use by members of the public for hire and reward. Currently, such rented vehicles may only be regulated under the Act as public service vehicles if they are chauffeur-driven, but not if they are self-driven by the hirers. Clause 2 amends the definition of public service vehicles to include these self-driven rented vehicles so that they will be regulated under the Act. Clause 4 strengthens LTA's ability to enforce against vehicle alterations for fuel tax evasion. The existing section 6A of the Act only allows LTA to prosecute against motorists who alter the fuel gauges in Singapore. LTA is unable to prosecute against motorists who alter the fuel gauge outside Singapore.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Page: 104 This Bill seeks to make a number of changes to the Road Traffic Act. The key changes relate to: (a) the conditional growth for the taxi fleets of taxi companies under the taxi availability framework; (b) taxation for the registration of previously de-registered vehicles; and (c) measures to improve the operational effectiveness and efficiency of the Land Transport Authority (LTA). Firstly, conditional growth for taxi fleets. Sir, let me first discuss the changes in this Bill to implement the conditional growth criteria for taxi companies. Under the taxi availability framework that was announced in July 2012, taxi companies will have to fulfil minimum standards pertaining to the availability of their taxis during peak hours and the general availability of their taxis on the road, before they can grow their fleet. This is to ensure that existing taxis are better utilised and, hence, better fulfil their public transport role. Clause 7 of the Bill thus amends section 103 of the Act to enable LTA to determine the maximum number of new public service vehicle licences for each taxi company based on its performance. The amended section 103 also provides for the right of taxi companies to make written representations for LTA's consideration. LTA had given the taxi industry time to adjust to the new framework after it was announced in July 2012. From August 2012 to December 2013, taxi fleet growth was capped at 2% for all taxi companies, but without conditions. From January 2014, taxi fleet growth for individual taxi companies will still be capped at 2% but will be subjected to the company having met the required taxi availability standards.”
“So, that is the situation as it is, which is why FRMC, when they put up the report, to their great credit, focused very much on affordability and concessions, but at various parts in the report, also made it very clear that they were concerned about the financial viability of the public transport system and, therefore, the need to maintain discipline in terms of having regular fare reviews. Page: 27”
“The FRMC, while they have not completely addressed this, actually devised a feature to try and moderate this somewhat. The FRMC would like to recommend that we have regular fare increases, and not follow the pattern of what we have seen in recent years where, sometimes, it is deferred and forgone because there is no roll-over mechanism. The FRMC added a feature that PTOs, based on their profitability, should contribute between 20% and 50% of the additional revenue that they would get arising from a fare increase exercise. So, for that year, they would take between 20% and 50%, depending on their profitability, and contribute this to the Public Transport Fund and then it would be up to PTC to decide how else to use the Fund beyond what it is today. Having said that, without defending in any way what the PTOs' profitability numbers are, it is also interesting to look at how that has changed over the years. I think it has really been SMRT's profits that sort of enjoy a certain scrutiny, more so than SBST's. As part of the fare exercise, I was actually looking quite closely at the numbers. What we had seen from March 2011 to March 2013, over the space of those two years, was a 50% decrease in the profits for SMRT, and the last financial year was about $80 million. Again, looking at the reports for the first two quarters of this year up to September, it has come down further by another 55% from last year's corresponding numbers. They are under some degree of cost pressures because we have required them to step up their maintenance, we have required them to set themselves to higher performance standards, and they have had to pay their staff more.”
“Thank you. May I ask the Member for his definition of what would be considered excessive profits? Page: 26”
“Those are good questions. Again, I reiterate the call to Members to be on the lookout for those who do need help and to see in what ways we can help them, both in transport as well as beyond transport. The intent, going forward, is perhaps, think about the possibility, as the Member has suggested, to not only make some vouchers available during a round of fare increase but also have some vouchers available on an ad hoc basis, so that assistance can be given to those who are most in need or who are in difficulties on a very sudden short-term basis. So, we will look at that very carefully and I thank you for the suggestion.”
“Well, if you look at the fare formula, instead of just taking CPI and the wage index minus the productivity component, as in the past formula, now it is both core CPI plus the wage index and the energy index minus a smaller productivity formula. We believe that that actually reflects better the cost structure of the operators. We have about 20%, or slightly over 20% of the expenditure going towards energy, which has increased by about 50% from what it was in the middle of the last decade. And 40% of their cost is already manpower-related. When the FRMC came out with the new fare formula, they had looked very carefully at the cost structure of the PTOs, but they also recognised that, instead of using headline CPI, it was more appropriate, as recommended by the academics, to make use of core CPI to take away the accommodation and the private transport components of it. Page: 25 On whether the new or old formula is superior, which will lead to higher or lower increases, it really depends. In a year where the electricity and energy prices go up significantly, as they have in the past, then I believe that the new formula will lead to a higher number. But in a year where those remain relatively stable and where the CPI increases are largely driven by accommodation and private transportation, then the new formula would lead to a smaller number. Regardless of a higher or smaller number, when the FRMC looked at it, they really wanted a fare formula that was more reflective of the overall cost structure.”
“Mdm Speaker, I want to thank Mr Giam for his supplementary questions. The first is that we talk about people with disabilities, not physical disabilities per se. There is, certainly on my part, no intention to Page: 24 exclude certain groups of people. Having said that, I would say that MOT is really not the expert in this area and we would be bringing in our colleagues from MSF and the groups who have much greater expertise to advise us further on this. On service quality, the one thing you want to try and do is to keep it as straightforward as possible. The FRMC had that in mind, to not want to complicate the fare formula unnecessarily. If you do want to include a service quality component in the fare formula, then I suspect that the PTOs would also say, "Well, what about the cost increases that are associated with any service quality improvements? Would that also be included into the fare formula?" Today, I think what we have is a situation where the regulator can very carefully and, I hope judiciously, increase the operating standards without the corresponding increase in cost being directly passed on to the commuters straightaway. We have been increasing the operating performance standards. We have required the operators to put in more trains and so on, and that has not translated into a fare formula where the commuters are required to pay, so, bear that in mind. The next is on the energy index and I am glad you agree with it but you also expressed concern whether we would then have to shield them from all the other components like manpower.”
“I want to thank Mr Cedric Foo for a very thoughtful question. When I asked the FRMC in February of this year to look at the concession schemes and to see whether we need additional schemes beyond the enhancements to existing schemes, I also asked them to look at the overall affordability how these schemes ought to be paid. The FRMC, I think, has come up with some very balanced recommendations. To benefit the additional of about half a million people – the LIWs and the PWDs – and to be able to achieve what I have just said in terms of concessions given to them must more than offset any fare increase for this next round, it would Page: 23 entail quite a substantive amount to be invested in these concessions. I think the FRMC realised that if all these were to be cross-subsidised by full-fare paying commuters, it would be a heavy burden on them, bearing in mind that they believe that it is really up to about the 60th, maybe 70th, percentile of Singaporeans that are public transport users. So, the FRMC was conscious of this fact and recommended – and the Government has accepted – that the Government be responsible for the new concession schemes. At the same time, the FRMC was also mindful that if all the concession schemes, including the existing ones, were to be borne by the Government, there would be a lack of tension in the system, so to speak. And so they retained the existing mechanism where enhancements to existing schemes would be borne by the rest of the commuters. So, I think there is a certain tension and a certain balance that they are trying to achieve.”
“Yes, that is the intent. For the LIWs and the PWDs, the intent is that, with the next round of fare increase, the discounts given to them will more than offset any fare increase. So, in other words, they will actually see a reduction in their fares.”
“Mdm Speaker, first, let me thank Dr Lily Neo for her supplementary questions and also for her strong advocacy over the years for the lower income and disadvantaged groups. On whether it is monthly passes or ad hoc vouchers, the intent is for the two groups that we have mentioned – the LIWs and the PWDs – to be given a card that will entitle them to the discounted fares. It will not be in the form of vouchers. It will be in the form of a pass. Secondly, on the point of good outreach, that is really important. Indeed, we would like to encourage all Members in the House to support us in this venture. I recall that in the previous fare exercise in 2011, we made available 200,000 public transport vouchers to try and offset the impact of the fare increase on the most vulnerable groups. Instead of making one call for applications, we actually made two calls. We made two calls for applications. In the end, just over half of the 200,000 vouchers were taken up. I think it is not the situation where we do not have enough vouchers but, really, it is how to reach out to them, how to make sure that they are fully aware of some of these schemes. We will try and do more in terms of the general publicity but I do Page: 22 encourage Members to support us in this. Finally, with regard to differential pricing, I think it is something that we need to be quite careful about. In fact, already, there is a certain amount of differential pricing because many of the tourists who come in would already be using single-trip tickets, rather than to use the ez-link card. We have, over the years, set the single-trip fares at a different price compared to what you would pay if you were to use your ez-link card for a particular trip, but we are also mindful not to stretch this too far.”
“We are also raising Operating Performance Standards, increasing penalties and tightening our regulatory framework to ensure that the PTOs deliver higher service levels. Starting next year, the rail operators will be running more train trips throughout the day to bring down waiting times to no more than five minutes for most of the day, even outside the peak period. PTOs will also need to further reduce the number of short service delays below five minutes and strengthen their maintenance regimes to raise reliability levels. We will complement these improvements with stiffer penalties for non-compliance. We are, therefore, making significant moves to improve service levels and to realise these improvements as fast as we can. Major improvements will take time but they are on the way. Meanwhile, it is imperative that the public transport system as a whole continues to remain financially viable, with Page: 21 commuters, transport operators and the Government all contributing. Hence, there will still be a need for regular fare increases to keep the system going, to maintain and improve service levels. But in doing so, Members can have my assurance that we will insulate the more vulnerable and needy Singaporeans from the full impact of fare increases. So, let me give Members this assurance that while fares are likely to have to go up in the coming years, they will not become less affordable for the average commuter, and, in fact, will be considerably more affordable for the low-income and the disadvantaged groups. This is my intention and I have every confidence that we can achieve it.”
“In the 2008 Land Transport Master Plan (LTMP), we explicitly declared our long-term intention to make public transport a mode of choice. This is re- Page: 20 affirmed in our recently launched and refreshed 2013 LTMP. Shifting commuters away from private to public transport is a strategic imperative, given our land constraints, and to make our city even more liveable. Our aim is to raise the public transport mode share during the peak period from the current 63% to 70% by 2020, and to 75% by 2030. To do so, we know that we have to substantively improve the availability and quality of public transport, and we have already announced many initiatives, both long and short-term. For bus commuters, we are accelerating the programme to add 800 buses, or what is going to amount to about a 20% increase, to the bus fleet. In the areas where we have implemented new routes or improved existing services, the benefits are already being felt by commuters. For rail, we will be adding more than 100 trains from 2014 over the next three years across all our rail lines. We will also be upgrading the signalling system of the North-South and East-West Lines by 2018 to allow peak hour trains to run at 100-second intervals, instead of 120 seconds currently. We will also be doubling our rail network from 178km to about 360km over the next 15 to 20 years. In addition to adding more buses and trains, we have also seen some improvement in the reliability of the rail network. For instance, train withdrawal rates for our oldest North-South and East-West Lines have come down significantly from about four per 100,000 train-kilometres in June 2012 – that means, four withdrawals every 100,000 kilometres travelled – to about 2.3 per 100,000 train-kilometres in September this year.”
“We have to be patient for the details as these are matters on which the PTC will make the call as part of its fare review deliberations. The PTC should also take into consideration the FRMC's recommendation for the PTOs to make one-off contributions from the fare increase they receive to the Public Transport Fund. Together with the channelling into this Fund the fines that have been incurred by PTOs for regulatory breaches, we will have a sizeable fund which can allow for more generous Public Transport vouchers to be given out to all needy households affected by any fare increase. Let me next touch on the issue of service quality, as there has been some feedback that this is missing from the FRMC report. Some have suggested that we should suspend fare increases until there is tangible improvement in service levels. I do acknowledge that this is a source of unhappiness for some. The FRMC has carefully considered this – whether to have a service component in the fare formula – and decided that the issue of service level is best addressed separately outside of the fare formula, where the Government can regulate and work with the operators to improve service levels. I think this is sensible and certainly practical in terms of keeping the fare formula relatively straightforward. In addition, we have practical considerations as we have a unified fare structure that is applicable for the entire public transport system, and it would be challenging to try to give differentiated fare increases to different PTOs on account of service quality issues. However, not having service quality as part of the new fare formula does not mean that we are not raising service levels, or that we are letting the PTOs off easily.”
“The PTC will consider the 2012 fare cap that was based on the old formula and which was suspended during the FRMC review, as well as the 2013 fare cap based on the new fare formula. Should the PTC, after careful study, decide not to effect both fare caps in one go, it may allow for part of this to be rolled over, as provided for under the new fare mechanism framework. Given the intent and spirit of what the FRMC has recommended to smoothen fare increases and ensure fare affordability, I would urge the PTC to consider the possibility that any fare increase for this next round of fare adjustment not exceed the average national wage increase for 2013. This will avoid an outcome where fares suddenly become less affordable for the average commuter. So, what I am suggesting to the PTC is that for this next round of fare increase, that any increase should not exceed the average national wage increase for 2013. PTC will, of course, have to decide what exactly the increase will be. That is their prerogative. And as part of the overall package for the coming round of Page: 19 fare adjustments, also look into implementing, in full or in part, the various enhancements to the existing fare concessions as recommended by the FRMC. If we add together all these possible changes to the concession schemes, including those to be funded by the Government, the next fare exercise could see a total of about one million commuters actually benefiting in some way. This could include preschoolers, students, including those in the Polytechnics, and also those who may wish to take up the adult and senior citizen monthly passes, which will cap expenditure for heavy public transport users. This is in addition to the low-income workers and persons with disabilities whom I had mentioned earlier.”
“We will, of course, need some time to work out the details of these two concession schemes, including who can apply and how to apply, and the precise concessionary benefits. However, our rough estimate is that about half Page: 18 a million Singaporeans will be eligible for these two new schemes. This would constitute a 40% increase in the number of commuters who currently enjoy various fare concessions, from about 1.2 million currently, to about 1.7 million. We have not yet decided on the exact amount of discounts to give to these two groups. However, it is my intention to ensure that the discounts given will more than offset any fare increase in the next fare exercise. So, the discounts that we are going to give to these two groups – the LIWs and the PWDs – will more than offset any fare increase in the next fare exercise. What is of the greatest interest to all Members is not so much the new fare formula that is proposed in the FRMC report – although I will touch on it briefly at the end – but instead, what this means for the next fare review exercise – how much will fares increase, and when. Following the Government's acceptance of the FRMC report, the next task will be for the Public Transport Council (PTC) to apply the new fare formula for the next fare review exercise and consider how to incorporate the FRMC's recommendations on existing concessions. The PTC will need time to go through various deliberations. While it may start the process for the 2013 fare review exercise later this year, its decision and the implementation of the decision will not likely be in 2013, but only in the first half of 2014, for practical reasons.”
“To the FRMC's credit, they did not duck this issue and have recognised the need for some discipline in ensuring that we have reasonably regular fare adjustments to keep our public transport system financially sustainable. That said, we would like to assure Mr Gan Thiam Poh that we remain fully committed to ensuring that public transport fares remain affordable. Wages over the past few years have gone up at a much faster rate than fares, which means that fares have actually become more affordable for the average commuter. This is an important point that I would like to emphasise: public transport fares for the average commuter have become more affordable, not less. However, we do recognise that there are certain commuter groups who would still be in need of help. That is why I had asked the FRMC to also study the affordability of public transport for Singaporeans of different income levels and various special groups who may need assistance should fares be raised. I am, therefore, pleased that the FRMC has come up with several useful recommendations, which we have decided to accept. The FRMC has recommended that Government implement and fund two new concession schemes. One, for persons with disabilities (PWDs) and the other, for low-income workers (LIWs). I am pleased to inform Mr Christopher de Souza and Dr Lily Neo, who have asked for more public transport assistance for disabled and needy Singaporeans that the Government agrees with the FRMC's proposals. We are committed to further strengthening our social safety net on the public transport front. The two new concession schemes for LIWs and PWDs go beyond giving these two groups of Singaporeans ad hoc assistance through Public Transport Vouchers.”
“The new fare formula, which is an improvement over the old, was meticulously crafted to better reflect the cost pressures that the PTOs face. Overall, the report is fair and reasonable and contains a timely reminder that we need to make regular fare adjustments from time to time to ensure that the system is sustainable and workable. Its recommendations will provide the Public Transport Council (PTC) with an enhanced framework to ensure that fares remain affordable across the diverse spectrum of public transport users. In February this year, I explained in Parliament that our fare increases over the last few years have been slower than that of comparable cities like Hong Kong and London. For example, London had raised their public transport fares by 6.8% in 2011, 5.6% in 2012, and, in January this year, by 4.2%. Fares in Hong Kong have increased by a total of 13% since 2009, including the latest 2.7% increase in June this year, which was preceded by a 5.4% increase last year. I should add that fares in Singapore were not higher than both cities to begin with. Page: 17 In contrast, since 2005 – when the first FRMC had proposed the past fare formula that was valid till 2012 – from 2005 to 2011, which was when our last fare increase took place, public transport fares in Singapore have increased by a cumulative 2.7% or an average of 0.4% per annum. This is despite the fact that there have been significant changes to the cost environment of the public transport operators. For instance, diesel prices have gone up by about 90%, while national average wages have gone up by about 30% over the same period. In short, fares have not kept pace with increases in operating costs.”
“I very much appreciate the FRMC Chairman Mr Richard Magnus and his Committee members for their effort in putting together a very comprehensive and balanced report. I do appreciate their efforts to consult widely and to look at the difficult issues of both ensuring commuters' interest Page: 16 in having affordable fares and the long-term financial sustainability of the public transport system. Reading the report, and also from the generally positive response from the public to the report, I can clearly see that the FRMC has put a lot of "heart" into their recommendations, in particular, for a concession framework that better ensures fare affordability for Singaporeans. I think it is useful to recap what is the context and purpose of this Committee that I appointed. In June 2012, I asked Mr Richard Magnus to chair a Committee to review and recommend improvements to the public transport fare review mechanism. In February of this year, I further requested the Committee to review the existing public transport concession schemes and propose improvements or new schemes to benefit a wider group of commuters, so that we can help keep down their expenditure on public transport. We have studied the report carefully. The FRMC has put together a list of recommendations that meets its Terms of Reference and, in my view, addresses the issue of fare affordability in a comprehensive manner. The Government accepts the FRMC's recommendations in full, including the new fare formula; the fare review mechanism, which includes the proposal to allow for smoothening of fare increases by rolling over part of the fare increases to the following year; and the proposals for new concessions and enhancements to existing schemes.”
“Yes, Mdm Speaker, I am, indeed, taking all three Questions together.”
“Mdm Speaker, there have been a number of questions and suggestions by Members during today's Parliament sitting as well as past sittings on the affordability of public transport fares and concessions. Since the release of the report by the Fare Review Mechanism Committee (FRMC), this has also been an issue of much public discussion. I feel, therefore, that I should give a more comprehensive reply in responding to the three Parliamentary Questions by also addressing the various recommendations by FRMC. But before I do so, let me first put on record my deepest appreciation and commendation to FRMC Chairman Mr Richard Magnus and his Committee Members for their tremendous effort in putting together what I consider a very comprehensive —”
“All taxi drivers have the right to work in a safe environment, free from crimes, such as verbal and physical abuse, injury, outrage of modesty and robbery. Taxi companies have installed panic buttons in their taxis for emergency purposes. A taxi driver in distress can activate the button to alert his taxi company's call centre, which would then communicate with the driver to check on the situation. Most call centres are also able to identify the location of the taxi through their GPS system, and alert taxi drivers in the vicinity and the Singapore Police Force if further assistance is required. Despite the precautions in place, taxi drivers must still exercise vigilance. The number of cases reported by female taxi drivers against unruly passengers has been low. Over the last three years, four out of a total of 50 reported cases were from female drivers. Two were for robbery and the other two were for outrage of modesty. LTA will continue to work with the taxi companies and the Police to improve the safety of taxi drivers against unruly passengers.”
“Since 2010, the owners of 28 vehicles per month on average, excluding motorcycles, have been fined for headlamp non-compliance, including the unauthorised installation of High Intensity Discharge (HID) headlamps. The available records from the Traffic Police indicate that there have not been any accidents since 2005 caused by drivers dazzled by light from other vehicles. LTA requires all newly-registered vehicles with HID headlamps to be equipped with an auto-levelling feature, unless the headlamps are mounted lower and meet certain headlamp aim requirements. LTA ensures this through its vehicle type approval process that all vehicle models have to go through before they are cleared for import. LTA's enforcement officers look out for vehicles fitted with very bright headlamps that do not comply with its requirements. Owners of non-complying vehicles are liable on conviction to a fine of up to $1,000, or a jail term of up to three months. In the case of a second or subsequent conviction, the offender shall be liable to a fine of up to $2,000, or a jail term of up to six months.”
“LTA contracts about 120 traffic wardens to enforce against illegal parking and bus lane offences. Open tenders for the contracts were called recently in June 2013. Tenderers were not required to disclose salary figures to LTA; however, MOM's Occupational Wage Survey data indicates that the basic and gross median wages for car park attendants in 2012 were $1,100 and $1,150 respectively. The Government announced in May 2013 that it will strongly encourage service providers to adopt the National Wage Council's recommendations. LTA will consider favourably service providers that adopt a progressive wage model for traffic wardens with a salary structure that is commensurate with their skills, productivity and career.”
“LTA is aware of the BTO developments at Rivervale Crescent including the recently completed Rivervale Arc and is reviewing the public transport options to meet the increased travel demand. This can come in the form of amending bus services or introducing new ones for Rivervale Crescent residents. Let me assure the House that LTA continually monitors and reviews commuter needs including in areas where there are new developments. Page: 142 At the appropriate time, LTA will engage the community to discuss possible options.”
“Safety is a key consideration in deciding whether cyclists can be allowed on expressways, even during off-peak hours. There is a significant difference in the speed of cyclists relative to motorists on expressways, which will result in cyclists suffering severe injuries or fatalities should any collisions occur. Cyclists are particularly vulnerable when cycling across slip-road entrances and exits of expressways, where vehicles join or leave the expressway at a relatively high speed. Motorists too, may get into collisions, for example, if they are surprised by the much slower-travelling cyclists and in trying to avoid them. We are thus not in favour of allowing cyclists on expressways.”
“LTA closely monitors housing development plans as part of its transport planning role. The significant increase in housing units in Nee Soon East which Mr Patrick Tay has highlighted would certainly require more bus capacity to be provided, and I assure the House that LTA has the plans in place to cope with the demand. Under the Bus Service Enhancement Programme (BSEP), two new bus services, Service 860 and Service 850E, were introduced in October 2012 and February 2013 respectively. Service 860 complements the existing feeder services 804 and 806 and provides residents staying along Yishun Ring Road with a direct link to Khatib MRT station. Service 850E is a peak hour express bus service providing commuters from Yishun with an alternative travel option to the CBD, instead of taking the feeder bus services and transferring to the MRT. Both of these new BSEP services have seen good take-up and thus, buses have been added progressively. For instance, Service 850E started off with only two bus trips in the morning in February, but is now operating five trips in the morning after LTA added three bus trips in April, July and October this year, and we will certainly be happy to add more buses as the demand increases. For the feeder services in Nee Soon East, Service 806 was recently improved with an additional bus during peak hours in September 2013, while Services 804 and 811 will have one bus each added during peak hours in Page: 134 October 2013 to meet the higher demand and ease crowding. LTA will continue to introduce more buses and other public transport improvements over the next one to two years in tandem with increase in ridership.”
“Mdm Speaker, in February 2013, the Government announced vehicle loan restrictions to encourage financial prudence among motor vehicle buyers. Subsequent to the announcement, the COE prices for vehicles fell and they have since risen but they have generally stayed below their peak level prior to the introduction of the restrictions. The Government has no plans to introduce additional cooling measures in the foreseeable future. Page: 29”
“Bedok North Street 3 is currently served by SBST feeder service 225, which links residents to Bedok Town Centre and public transport nodes like Bedok Bus Interchange and Bedok MRT station. Residents can also walk a short distance to Bedok North Road to take SBST trunk services 45, 60 and 87, which provide connections to Bedok and Tanah Merah MRT stations and other destinations such as Kaki Bukit, Eunos, Serangoon and Hougang. These three services were also recently enhanced under the Bus Service Enhancement Programme (BSEP), with five buses added. A new City Direct service has also been planned to ply Bedok North Street 3 next year. A tender for the service has been called and is currently being evaluated by LTA, which will announce more details at the appropriate time.”
“Currently, when a motorist passes through an operational ERP gantry without a cash card properly inserted in the In-Vehicle Unit (IU) or with a cash card with insufficient value, LTA already allows the registered owner of the vehicle to pay the ERP charge within 14 days, along with an administrative charge of $10 (or $8 if payment is made electronically), before a Notice of Traffic Offence carrying a composition offer of $70 is issued.”
“In Yishun, there have been several improvements made under the Bus Service Enhancement Programme. These include injecting more buses to Services 857 and 965, as well as starting two new bus routes – Service 860 and the parallel bus Service 850E, both of which have been well received. Where possible and necessary, LTA will discuss with the two operators to deploy high capacity buses such as bendy buses or double decker buses. LTA has also been working with SMRT to relieve train crowding. For instance, when possible, SMRT turns around two north-bound trains at Yishun in the morning peak period to provide additional south-bound train trips. In addition, the overall capacity of the North-South Line will be improved in the next few years. More trains will be added, with the first tranche of 13 more trains entering service by 2014. The signalling system for the North-South Line will be upgraded by 2016, which will reduce waiting times between trains during peak periods to 100 seconds from 120 seconds today. The completion of the Thomson Line, starting from 2019, will also significantly increase rail capacity along the north-south corridor.”
“The Civil Aviation Authority of Singapore (CAAS) requires the Changi Airport operator, Changi Airport Group (CAG), to maintain a good standard of taxi services at Changi Airport. For example, CAAS requires that 90% of passengers clear the taxi queue within 10 minutes of waiting. CAG is currently reviewing the taxi queue management system to ensure that it can adequately serve the higher number of commuters when the Terminal 1 expansion and Project Jewel development are completed. For example, it will study measures to increase the capacity of the taxi holding areas and to enhance safety within the airport roadway system. CAG is also planning to increase the number of taxi pick-up bays to adequately serve the commuters at Terminal 1 and the Project Jewel complex. To help airport users have easier and faster access to taxis at Changi Airport, CAG has been leveraging on technology to better match taxi demand and supply. For instance, to complement the taxi information display system that has been installed at Airport Boulevard, CAG has introduced a new free mobile application, Cabs@Changi, which disseminates information such as the number of arriving flights and the number of taxis in the taxi holding areas to taxi drivers on a real-time basis. At present, there have been more than 10,000 downloads of Cabs@Changi. CAG is also working with key partners such as the National Taxi Association and the taxi companies to introduce initiatives to attract more taxis to the airport. These include providing free coffee and festive giveaways, as well as organising lucky draws to encourage taxi drivers to come to Changi Airport. Page: 135”
“Taxi companies are required to meet Quality of Service (QoS) standards in the areas of taxi booking, safety and the conduct of their drivers. They are also expected to meet other regulatory requirements for renewal of their Taxi Service Operator Licence (TSOL), such as achieving the minimum fleet size and putting in place the capability to locate their taxis to facilitate taxi booking. Smart had multiple failures in its QoS performance and did not demonstrate commitment to meet the licence renewal conditions, despite LTA's extensive efforts to work with them to improve. LTA did not take this decision not to renew Smart's licence lightly, and was fully cognisant of the potential impact, but it is important for the regulator to credibly ensure that operators perform according to the required standards, so that the commuter’s interests are protected. To minimise the impact of Smart's exit, LTA had worked with the National Taxi Association to help Smart fulfil its obligations to its taxi drivers, and facilitate placements for them in the other taxi companies. LTA had also facilitated the transfer of Smart's taxi licences to Trans-Cab to ensure that the overall taxi fleet did not decline. The principle of ensuring a reasonably orderly exit of a taxi operator, and ensuring that the impact on affected taxi drivers as well as on the commuting public would be minimised, would continue to be key considerations if there are future similar cases. Beyond these general considerations, the specific measures will have to be tailored based on the size of the operator and the relevant prevailing circumstances. Page: 134”
“Public transport vouchers are one-off assistance measures to help mitigate the impact of public transport (PT) fare increases for low-income families. The table below shows the number of PT vouchers made available and encashed since 2007. No vouchers were disbursed in 2009, 2010 and 2012 as there were no fare increases in those years. No family has been left out due to insufficient supply. The Fare Review Mechanism Committee is currently reviewing the public transport concessions framework to ensure that fares are kept affordable, including for low-income earners. Page: 133”
“Taxi booking is an efficient way to allow customers who critically require a taxi, to be assured of getting one when and where they need it. The taxi booking fee covers the opportunity cost of accepting a booking assignment. When a taxi driver commits to a booking assignment, he or she is not allowed to accept any other jobs until the booking assignment has been fulfilled or terminated. To prevent the manipulation of the "On Call" display signs on taxi rooftops by taxi drivers, the Taxi Service Operator Licence conditions require taxi companies to ensure that these "On Call" signs are centrally-controlled. Currently, more than 80% of the total taxi fleet have been equipped with these signs and this will increase to 100% by 2015. Under the Vocational Licence Points System, taxi drivers who refuse to pick up passengers without valid reasons will be fined $300 and given six demerit points, which automatically warrants a two-week suspension. Commuters who encounter such behaviour should report it to the taxi companies or LTA. To ensure that there are sufficient taxis plying the roads, LTA introduced the Taxi Availability standards in 2012. By 2015, LTA will require taxi companies to ensure that 85% of their taxis are on the road during peak periods, as well as achieve a minimum daily mileage of 250 km. I would like to assure the House that my Ministry and LTA will continue to work closely with the taxi companies to ensure high standards of service to commuters. Page: 112”
“We estimate that the project to enhance the capacity of the Sengkang-Punggol LRT (SPLRT) system can be completed by 2016. The project requires major modifications to existing train-cars, systems and infrastructure, including the depot and the LRT tracks, and we are proceeding as fast as we can.”
“Most foreign workers staying in dormitories are already provided with dedicated transport to and from their workplaces by their employers. A small percentage of them take public transport. LTA actively monitors the public transport services near these dormitories to ensure that there is no excessive overcrowding during the peak hours. When such bus services are overcrowded, LTA will work with the bus operators to add bus trips and increase overall bus capacity. Some of these bus trips can be injected downstream of dormitories so that residents taking bus services after the dormitories will be able to board the buses. LTA will also work with existing dormitory operators and employers to encourage them to provide dedicated transport for the purpose of ferrying foreign workers to and from their workplaces.”
“LTA and the Traffic Police worked closely with the National Heritage Board (NHB) to facilitate the closure of Armenian Street and a lane closure on Loke Yew Street during the Singapore Night Festival 2013. While Stamford Road was closed for previous editions of the Festival, the ongoing construction of a Downtown Line station at Bencoolen Street has changed the overall traffic flow in the area. It was not possible to close Stamford Road since last year as it would have resulted in significant traffic congestion and affected bus services. The benefits of a road closure to support an event must be carefully balanced against its downsides, such as the inconvenience to bus commuters, motorists and other stakeholders in the area. There may also be safety implications as road closures can prevent or delay emergency vehicles from reaching their destination. LTA has worked with the public transport operators to extend their operating hours on occasions, such as Christmas and New Year's Eve. These extensions are kept to a minimum as they would reduce the night hours Page: 100 available for maintenance works to be carried out.”
“Taxis are subject to ERP charges as they take up road space and contribute to congestion just like other vehicles. To encourage taxis to enter the Central Business District (CBD), taxi companies have introduced the City Area Surcharge for trips originating from the CBD. This surcharge applies every day during the evening peak period between 5 pm and midnight. In addition, Comfort and CityCab reimburse their drivers for the CBD ERP charges if they are unable to pick up a passenger within 15 minutes of entering the CBD empty during the evening peak period. We will continue to monitor the taxi situation, including in key areas, such as the CBD, and where necessary, we will see how we can refine our policies and regulatory framework to ensure a good match of supply and demand.”
“LTA takes HDB's staging plans for BTO projects into account when planning Singapore's land transport system. For the Yishun area, there is an expected 20% increase in completed public housing dwelling units from 2013 to 2016. We expect ridership on trains and buses to increase in tandem, and have put in place plans to enhance the capacity of public transport in the area. For instance, we will increase rail capacity by 30% along the north-south corridor over the next few years, with 13 more trains entering service on the Page: 93 North-South and East-West Lines by 2014 and a further 28 trains by 2016. The signalling system for the North-South Line will also be upgraded by 2016, which will reduce waiting times between trains during peak periods to 100 seconds from 120 seconds today. The Thomson Line, starting from 2019, will significantly expand capacity further along the north-south corridor and connect commuters to five other MRT lines when fully opened. Where necessary, we will also introduce new bus services or re-route existing ones to ensure that bus capacity remains adequate.”