Mah Bow Tan
Singapore
“The previous generation of Singaporeans overcame huge odds together to create this improbable nation which we call home. Let this generation work as one to define our country for the next lap of our journey. Sir, on this note, I fully support the amended Motion. Page: 143”
“Like all upgrading programmes, there is a certain budget, and a certain pace at which we will build. We have completed the LUP and now we are going on towards the HIP. The Estate Upgrading Programme (EUP) is ongoing.”
“For those who cannot afford home ownership, we will provide rental flats. For the rest where there is hardship involved, that is where the safety net comes in. I do not think we should make the safety net so wide as to bring in everybody.”
“Building a studio apartment is no different from building any other HDB flat. If a person applies now and the building works start now, he can get it in two-and-a-half years to three years. We have stepped up the building of studio apartments over the last couple of years.”
“Mdm Halimah Yacob asked the Minister for Health (a) how many people have signed an Advance Medical Directive (AMD) and how many have revoked them since; and (b) whether there is a need to review the current rules on AMDs which do not require a person who has revoked the AMD to inform the Registrar, thus causing uncertainty for hospitals t…”
“Parents who wish to exert more control over the maximum mobile service charges incurred by their children may consider service options such as mobile pre-paid cards. IDA is aware of the public's concerns on mobile subscriptions, and will continually review policies and look into measures to further protect the interest of consumers.”
The complete record
Every one of 3,030 lines we hold for Mah Bow Tan, in date order, each linked to its source. Free to read, in full, without an account. Page 40 of 61.
“Mr Low Thia Khiang asked the Minister for National Development why the Government allows Singapore permanent residents to purchase Housing and Development flats that are built on relatively cheap land acquired by the Government and to enjoy mortgage loans financed by relatively cheap funds. 6. Mr Low Thia Khiang asked the Minister for National Development how many Housing and Development Board flat owners who are permanent residents have family nuclei comprising permanent residents that have enabled the owners to qualify for ownership and what types of flats do they own.”
“For the whole of 1999, the construction sector is expected to contract by 15%. The public sector's share of the total construction demand dropped to 56% in 1999, as compared to 69% in 1998. This is mainly due to the sharp drop in tender prices, rather than the number of projects which increased by 3.9% from 812 projects in 1998 to 844 projects in 1999. We expect construction demand to pick up this year due to improved market sentiments in the private sector and major public infrastructure projects in the pipeline. The public sector's value share of total construction demand is expected to climb to 70% in 2000. Public civil engineering projects are expected to make up 30% of total construction demand. Contracts for large projects such as the S$1 billion Marina MRT Line and the S$1.5 billion Jurong Island Phase 4 and Tuas View extension reclamation project will be awarded this year. Public residential (HDB) and institutional projects are expected to contribute another 15% each. HDB's building programme has to be carried out in tandem with its public housing programme. This, in turn, is largely dependent on the demand for new flats. HDB cannot overbuild just to prop up the construction industry. Otherwise, it will result in high holding costs for the unsold flats. There is generally a 1 to 2-year time lag before construction GDP picks up. As such, we expect the construction industry to contract by about 8.3% in 2000 before regaining positive growth. Based on feedback from the various Government agencies, there is a fair distribution of major projects in 2000 and 2001 which would contribute significantly to the continuous and sustainable growth of the industry over the next few years. HOUSING AND DEVELOPMENT BOARD FLATS FOR PERMANENT RESIDENTS 5.”
“Dr Jennifer Lee asked the Minister for Finance (i) whether further tax rebates, which are given to a working mother in the year of the birth of her third or fourth child and which may be used up to a period of 9 years, will be subsequently withdrawn if her marriage is dissolved by divorce, and if so (ii) what is the rationale for this.”
“The Sale of Tenanted Shops Scheme (SOTS) was introduced in July 1992 with the objective of restructuring and improving the efficiency of shops in HDB estates. So far, HDB has conducted 18 sales with 7,500 or about 75% of eligible shops sold. While the economy has improved and economic growth is expected to continue into Year 2000, the Government is mindful of the need to maintain cost competitiveness and ensure the growth can be sustained. For this reason, the Government has extended the rental rebates for HDB's commercial properties till the end of December 2000. At this moment, HDB has no plans to sell any more shops under SOTS. Nonetheless, if there are any specific requests from the Advisors, HDB will consider each case on its own merits. TAX BENEFITS FOR THIRD CHILD 24. Dr Jennifer Lee asked the Minister for Finance (i) at what income level has a mother to be for the tax benefits for a third child to match or exceed the monetary value of eight weeks of her paid maternity leave; and (ii) what is the number of women in this group. Dr Richard Hu Tsu Tau: All taxpaying mothers of any income level can claim a "Further Tax Rebate" (FTR) at 15% of her earned income. The Employment Act allows eight weeks of paid maternity leave only for the first two children. The FTR percentage is roughly equivalent to eight weeks of maternity leave. The FTR is available for the third and fourth children. It is meant to encourage working married women to have more children if they can afford it. The rebate quantum can be claimed over a period of 9 years. It should also be noted that there are tax benefits in addition to the FTR for those who can afford more children, such as the S$20,000 Special Tax Rebate and Enhanced Child Relief for the third child. TAX REBATES FOR WORKING MOTHERS 25.”
“Mr Speaker, Sir, the Government's objective is to make every new HDB town as self-sufficient as possible. In addition to building new HDB flats, HDB also carries out comprehensive town planning for new HDB towns. It safeguards lands for a host of commercial, educational, social, recreational/sports, religious and institutional facilities based on planning norms and guidelines provided by the relevant authorities. The planning norms are reviewed regularly to take into account the changing profile of residents. Commercial facilities are built in tandem with the completion of flats to cater to residents' needs. Each town is planned with a town centre, which is developed by the private sector. It will also have neighbourhood centres which will serve a neighbourhood of between 6,000 and 8,000 households. At the precinct level, HDB will also provide some shops to serve the daily needs of residents. It will, as far as possible, locate these shops within walking distance of the residents' flats. All these facilities have to be built in stages in tandem with the increasing catchment of the new towns in order to maximise the use of the facilities. While it is feasible for HDB to build the facilities in advance, the shopkeepers are unlikely to commence operation before sufficient residents have moved in as their business would not be viable. FORMER PRESIDENTS (Financial and personnel support) 8. Dr Lee Tsao Yuan asked the Prime Minister whether former Presidents are entitled to some form of financial and personnel support from the Government in order to maintain the dignity and stature of their former office; and in particular, whether they receive (i) a pension; (ii) medical benefits; (iii) secretarial support; and (iv) a small office.”
“Mr Speaker, Sir, the Studio Apartment (SA) Scheme was introduced as another housing option primarily to cater to the needs of elderly HDB flat owners. The scheme allows them to sell their existing larger HDB flats, buy the smaller studio apartments that are purpose-built to serve their needs, and then use the balance of the sales proceeds to meet their old age needs. Since the launch of the Studio Apartment Scheme, HDB has received requests from MPs and members of the public to open the scheme to senior citizens who are non-HDB flat owners. HDB will bear in mind this request when it reviews its policy. CHANGI AIRPORT TERMINAL THREE (Construction) 11. Mr Chuang Shaw Peng asked the Minister for Communications and Information Technology whether he will consider bringing forward the construction of Changi Airport Terminal Three which was postponed because of the economic crisis.”
“Currently, HDB does not offer new 3-room flats to flat buyers. It buys 3-room flats from the open market and sells them at subsidised prices to low-income first-timer families with household income not exceeding $1,500 per month. The sale of 3-room buy-back flats is one of many HDB schemes to help low-income families own HDB flats. Upgraders have already enjoyed one subsidised flat. They should therefore not compete with first-timers for a 3-room flat from HDB. They can buy a 3-room flat from the open market with the sale proceeds obtained from the sale of their existing flats. PARENTAL CONSENT FOR TELECOMMUNICATION SERVICES 14. Mr Low Thia Khiang asked the Minister for Communications and Information Technology whether he will consider introducing regulations to require parental consent before teenagers are allowed to subscribe to telecommunication services such as those for handphones and pagers.”
“The upgrading programmes are part of our Estates Renewal Strategy to rejuvenate older HDB estates while keeping the community ties intact. The Main Upgrading Programme (MUP) aims to improve the living conditions of the older HDB estates and bring them closer to the standards of the latest HDB housing developments. The Interim Upgrading Programme (IUP) allows residents living in HDB blocks that are more than 10 years old to enjoy some form of upgrading to the common areas before the blocks are due for MUP. Both these upgrading programmes are heavily subsidised. The Government will maintain the IUP at 18 precincts for 1999 to allow residents to continue to enjoy the benefits. This takes into account the resources of the Town Councils. Increasing the number of precincts will lead to slower and less than satisfactory implementation of the projects. The current programme of 18,000 dwelling units per year is just right for the Town Councils to comfortably handle. As for MUP, it was earlier announced that the programme will be scaled down to 5 precincts in 1999 from 10 last year in view of the economic uncertainty then, and the fact that we will be having a budget deficit in FY99. Should the economy continue to show clear and sustained signs of recovery, my Ministry will review the programme with a view to increasing the number of precincts for MUP next year. GUIDELINES FOR CONSTRUCTION INDUSTRY TO REDUCE NOISE POLLUTION 20. Dr Lily Neo asked the Minister for the Environment whether recommendations and guidelines have been given for the construction industry to reduce noise pollution, especially in the densely populated areas.”
“Very good question. I have asked HDB that myself. The design of the new estates will take into account the demands for the new flat types that are being requested by residents, not just the size of the flat but also the pricing of the flat. So in this regard, the sizes that are being built in the new estates are just right, not only in terms of household family size, but also in terms of pricing. We can build flats which are much larger than what they are today. But at the end of the day, there are so many types of flats and so many number of flats that we can build of that particular size. We can build all 5-room flats of 150 sq metres. But there will be fewer 5-room flats for us to build. Then what? After that, the MP will come back and make a representation on behalf of his residents who cannot get flats. Our policy is very simple. We will try and house as many Singaporeans as possible in flats which are comfortable, which meet their requirements and, at the same time, are affordable. These are the key criteria.”
“As far as floor areas are concerned, it is for the new replacement flats because there were some concerns that the replacement flats in some cases may be too small for the residents in Hillview Estate. Mr Ang Mong Seng did make a representation and HDB has found it possible to build a few of these larger flats. Not everybody would be interested in these flats, but for a few of them who are interested, HDB has found a way to cater to their interest. So these are for replacement flats, not for the existing flats. Mr Low Thia Khiang: Sir, would HDB consider building larger flats in new estates if there is such a demand?”
“Let me try and answer Mr Chiam's questions. The first one is on the support level. What HDB does is to send out a survey form to each of the residents and the residents are asked to indicate, among other things, whether they support the SERS scheme and also what kind of flat types they want in the replacement site. This is to facilitate the planning for flats in the replacement site. The returns are collected and collated by HDB and that is how we get the 70%. It is not a figment of my imagination. It is part of a survey done by HDB. It is in writing and all the residents actually signed the returns and indicated in writing whether they support or otherwise. So it is, I believe, a fairly reliable indicator of the support level. The other point that he made is that residents who had bought at $360,000 will now get compensation of $300,000. I think that is only half the story. If he goes into it in greater detail, he will find that the majority of the residents will come out very much ahead. They will get a new flat. They will get a flat which has got a brand new lease. They will get a new subsidised flat in a better area. They will get a discount of 20% over and above all that, plus all the other benefits. It is a deal which is simply too good to refuse for many people. But there are a few, as I have indicated earlier, who may still not be happy with the total package. We will try and help them. But, by and large, the majority of the residents do benefit from the SERS scheme and that is indicated very clearly by the kind of written support level that we have been getting over the last 30-over sites.”
“However, we have to bear in mind that the whole SERS programme is a public redevelopment programme that is intended to generate benefits to the majority of the residents as well as to the nation. Yes, there are some people who are against the SERS scheme. As I have indicated earlier, we will try our best to mitigate some of their concerns. But it is not possible for us to stop the SERS programme for these three blocks just because of a few residents who are against the scheme.”
“Sir, the first point that Mr Chiam made was that these flats are already densely built and therefore they should be left alone. That is not the only consideration in so far as the redevelopment of the Hillview Estate is concerned. If Mr Chiam is familiar with Hillview Estate, he will realise that that estate is quite separate from the rest of the estate. So one of the considerations has been that if the three point block flats are left remaining behind as HDB flats, the maintenance and redevelopment of the area will not be as optimal as they should be. There are also complaints about the flats in the area in so far as the condition of the flats is concerned. Many residents have given feedback to the Member of Parliament that there are problems with maintenance, public transport facilities in the area, and so on. So this is the other consideration that was taken into account in the overall redevelopment of the estate. It is of course not a hard and fast rule because it depends very much on different estates in different areas. Indeed, Mr Chiam mentioned two other places where point block flats were not involved in SERS. So it really depends on what the plans are for the overall redevelopment of the estate and whether the existence of these point block flats would hinder the redevelopment plans. It is for these reasons that consideration was given to the inclusion of the three point block flats as well. Having said all that, of course, ultimately, when the residents were polled for their response to the SERS programme, the response in these point block flats also indicated that the clear majority of the residents do support the SERS programme. There are some residents I know in the point block flats who are against the redevelopment of their blocks.”
“As a goodwill gesture, HDB will not charge interest on the deferred amount. These concessions are also extended to affected lessees in other SERS sites announced earlier if they are in the same situation. Finally, on the question of mortgage loan, HDB will also be considering on a case-by-case basis to provide up to 100% mortgage loan for the purchase of replacement flats. HDB will give fuller details of these changes later on. As for SERS lessees who are singles, HDB has decided that it will not extend the full rehousing benefits to them because as it is, under SERS, singles are already enjoying some very major concessions. For example, they are now able to get a new replacement flat as a single lessee and this new replacement flat will of course be at subsidised prices. They are also allowed to buy a new 4-room flat and, as the Member may be aware, under normal circumstances, singles are not eligible to buy a new flat directly from HDB and even then, they can only buy up to a 3-room resale flat. The Member has also asked about shops in the area. The assessment of HDB is that in the new redeveloped area, there are sufficient shops and eating houses in the vicinity of the replacement site. So HDB has not planned to build any commercial facilities there. But in view of the Member's appeal, I will ask HDB to look into the feasibility of providing a few shops in the area.”
“Sir, since the announcement of the SERS programme at Hillview Estate in March and also the announcement of the Tronoh Road redevelopment, both the MPs, Mr Ang Mong Seng as well as Dr Lee Boon Yang, have met with the residents and given very valuable feedback to HDB on the concerns and requests of the residents. In view of the MPs' feedback, my Ministry has decided to fine-tune the SERS programme for these two sites. The changes are as follows. First of all, on the question of flat sizes. HDB will be providing some 4-room and 5-room new replacement flats which will have slightly bigger floor areas to match the current flat sizes in these two areas. On the question of the premium and levy, to help the residents affected by the HDB's revised resale levy policy, my Ministry has decided to give them the option to pay the standard 20% premium on the selling price of the replacement flats in view of the revised resale levy. This would help some of the residents pay a lower amount. The resale premium will also be incorporated as part of the selling price of the replacement flat. In this way, it can be paid either through the Members' CPF accounts or they can get a mortgage loan from HDB to pay this amount. Those who opt to pay the resale levy can also contra the payment from the compensation that they will receive for the sale of their existing flats. So this is in lieu of paying cash. To further help their cashflow, my Ministry will also allow affected residents who are liable for resale premium or deferred levy to pay only $30,000 of the premium or levy upfront. The rest of the amount will be deferred. This will be held as a contingent liability by the HDB which will only need to be paid if and when they sell or transfer the replacement flat allocated under SERS.”
“HDB conducted a survey among the affected flat lessees after the announcement. As at 28th June 1999, 86% of them have responded to the survey. Of these, 86% are in support of SERS. Among the five-roomers at Blocks 12 to 14, 70% supported SERS. The scheme has clear support from the majority of residents. Nevertheless, I understand that a small group of residents are unhappy with the scheme for various reasons. The Government will do whatever it can to ensure that they are treated fairly and will try to help them resolve their problems. Meanwhile, the Government will proceed with the original plan to include the three 5-room blocks at Blocks 12 to 14 in the redevelopment.”
“Mr Speaker, Sir, the Selective En-bloc Redevelopment Scheme (SERS) is a "win-win" situation for both the nation as a whole and the affected residents. With SERS, the Government can renew and rejuvenate older HDB estates. More flats of improved design can be built to make better use of our limited land. This will also encourage and allow younger families to move into these older estates. The affected residents enjoy many benefits under SERS. They can move to newer and better HDB flats, with a fresh 99-year lease, at subsidised selling prices. They are also given market compensation for their existing flats as at the time of announcement of SERS. Those who are eligible to buy a flat directly from HDB can enjoy a further 20% discount, subject to a maximum of $30,000, off the selling prices of the replacement flats. In addition, SERS lessees need not move out of their existing flats until their replacement flats are ready. In most instances, the replacement flats are built in close proximity to their existing flats so they do not have to move out of the neighbourhood. Since the announcement of SERS in 1995, 31 sites involving some 12,500 HDB sold flats have been identified for the Scheme. They are located in the older HDB estates such as Queenstown, Bukit Merah, Bedok, Jurong, Toa Payoh, Kallang/Whampoa and the Central Area. SERS has been well received by the affected lessees in these precincts. For all the SERS sites announced so far, the average support level from affected lessees is above 90%. The SERS for Hillview Estate was announced on 21st March 1999. It involves the entire Hillview Estate, comprising 12 sold apartment blocks, one rental apartment block, the neighbourhood centre and the Bukit Gombak Community Centre.”
“In fact, the result shows that as a result of these very stringent checks, we have been seeing much cleaner batches of vegetables coming in over the last two weeks or so. It is a little bit too early to tell. But I think we should persevere with these more stringent checks. As to the other question about whether they violate any WTO regulations, the answer obviously is no. These are checks which are necessary in order to protect the health and safety of our consumers, and I think every country practises this to a greater or lesser degree. SELECTIVE EN-BLOC REDEVELOPMENT SCHEME IN HILLVIEW ESTATE 9. Mr Chiam See Tong asked the Minister for National Development whether he is willing to exclude the three Housing and Development Board point block flats, namely Blocks 12, 13 and 14 of Hillview Estate, from the Selective En-bloc Redevelopment Scheme.”
“Sir, in so far as the limits are concerned, as I explained earlier, there are certain limits which are set by internationally recognised bodies such as the Codex Alimentarius Commission. They specify different limits for different types of pesticides. For example, there were reports that we do not allow certain pesticides to be used in Singapore whereas they are allowed in other countries. In those cases, what happened was that these pesticides have zero MRLs, perhaps because the Commission feels that these are much more dangerous than the other pesticides. So whichever MRL is specified by the international commission, that is the level we adopt. The next step is to do sampling or random tests on consignments that come in. All the consignments that come in, that are imported into Singapore from whichever country (Malaysia, Indonesia, Australia, and so on), are subject to quality control tests. And the rule of thumb by the PPD is that not more than 5% of the samples that are tested should exceed these limits. So there is a margin of error built in. Obviously, it is not possible to completely eliminate all the contaminated batches, so there is a sampling error allowed. The finding so far has been that the batches from Malaysia have exceeded this 5% guideline. In fact, it has gone as high as 30%, 40% for some species of vegetables. This is the reason why with effect from 1st July, the PPD has implemented a much more stringent checking and testing procedure to try and focus on some of these more, should I say, "dangerous" vegetables. There are about 22 of them, out of 100 vegetables that are imported into Singapore that are subject now to these new regulations.”
“All I can say is that there is no basis whatsoever for such an allegation. PPD's move to impose strict controls and conditions is to protect our consumers from exposure to excessive pesticide levels in vegetables that are imported from Malaysia. Our local vegetable production accounts for something like 6% of total consumption in Singapore. So that is why we have to import vegetables from almost 40 countries. In the last count, it was 39 countries. So really it is not in our interest and neither is it our policy to erect non-tariff barriers for vegetables or for any other product for that matter.”
“Sir, the Primary Production Department (PPD) closely monitors both imported as well as locally produced vegetables to ensure that they are safe for consumption. In deciding what levels of pesticide residues are safe, PPD adopts the Maximum Residue Limits (MRLs) recommended by the Codex Alimentarius Commission, which is internationally recognised as the authority on food safety matters. Vegetables found to contain pesticide residues in excess of these MRLs are destroyed. As for organic farming, PPD has recently tendered out land which could be used for organic vegetable farming. PPD will continue to support and render technical assistance to farms that are interested in organic farming, hydroponics as well as conventional soil cultivation of vegetables. I would like to inform the House that our local farms are able to produce both pesticide-safe as well as pesticide-free vegetables for consumption. This is because PPD encourages our local farms to adopt good agricultural practices such as regulating the use of pesticides and growing the vegetables under protective netting to reduce pest infestations in vegetables. Contrary to perception, vegetables which are grown with the use of pesticides are safe if the farmer adheres to sound agricultural practices. Assoc. Prof. Low Seow Chay (Chua Chu Kang): Mr Speaker, Sir, the Malaysian authority claims that the PPD bans the use of seven types of pesticides which are actually allowed in Malaysia. They claim that this is a form of non-tariff barrier. Is there any truth in the allegation?”
“All that was asked was to make sure that the activities of the group are regularised and that the residents are allowed to join in. This has become an issue that has caught a lot of people's attention. It has become an issue ranging from whether people should pay to use public facilities, to why one group is discriminated against. I think it should not be an issue in this debate, and this is the reason why I would like to clarify this point. It is a municipal issue which should have been resolved. Unfortunately, for whatever reason, the reporters and the newspaper in question decided to blow it up and turn it into a big issue. The facts I have put before this House are what is known to me. Unfortunately, it may have stopped a good story from being written. I have made the clarification twice. On Sunday, I made this clarification. A small report came out. Some of you may have missed it, but the newspaper decided to follow up with another story today. I have made another clarification this afternoon to the reporter. Since Mr Hawazi has raised it, I am making another clarification, and I will see what happens tomorrow. But let us not get distracted from a serious issue before this House, which is a debate on Singapore 21 which talks about what Singaporeans want Singapore to be in the next century.”
“So when the group met me about two weeks ago, after the incident with the RC, I suggested to the group that they should register their intention to use the park with the Town Council, so that we are able to make sure that the park is properly managed and that there is no clash of activities. I also told the group that they are free to use the park without any charge on condition that they allow members who wish to join them to do so. I have heard nothing more from the group, until I saw the report in the Straits Times which took me entirely by surprise. What happened? Obviously, the group must have been unhappy with their altercation with the RC and went to the press. The press asked a few questions of the Town Council. The Town Council answered a few questions, such as, "Do people have to pay to use the park? Do people have to pay to use public facilities?" The answer is "Yes". "How much do they have to pay?" Amounts that range from $10 all the way to $300, if it is a very elaborate affair like a wedding. Lo and behold, a report comes out that you either pay or go away. I think this was a very serious matter which was of great concern to all of us. First, because we do not want to exclude anybody. But, second, we want to make sure that the facilities in the constituency are available for use by all residents. After all, the residents are paying conservancy fees to the Town Council and the Town Council has to make sure that the facilities are properly used. But it is a municipal matter. It is not a big issue. And we thought we had resolved the matter. Until it became a big issue because the issue now is a question of paying $300 or go away. There was never any question about payment. There was never any question about asking the group to go away.”
“Mr Speaker, Sir, I would like to take this opportunity to clarify some of the points that were made by Mr Hawazi just now. I do so because I do not want this issue to take a life of its own, especially when the facts are quite contrary to what has been reported in the Straits Times. It is a very good story, sensational in many respects and, in fact, if it were true, then I think it would lend credence to the views of some people that some parts of Government are still very bureaucratic and very unreasonable. But let me give Members of this House the facts, and then we can take it from there. I am a Member of Parliament for Tampines GRC. The festival park in question is in my constituency and, therefore, I think I am in a very good position to give Members the facts. First of all, the group in question has been exercising in the festival park for the last two years with no problems, no payments, no complaints. So the question of payment of any amount does not arise at all. So, what happened? Two weeks ago, there was a letter of complaint that reached the Residents' Committee. The Residents' Committee had to act on that complaint because the resident complained that when she wanted to join that group, she was not allowed to do so. The Chairman of the Residents' Committee together with other members then approached the group in question, asked for clarification, suggested that they join together. There was an exchange of words, I believe, arguments ensued, heated words were exchanged, and they parted without any solution. I was kept informed of the situation. My worry, frankly, was because the group in question was a group of Malay women. I wanted to make sure that the group would be able to continue with their activities in a way that does not exclude anybody.”
“Mr Tay Beng Chuan asked the Prime Minister (a) whether he will provide statistics on the number of local and overseas university scholars who had broken their service bonds upon graduation; (b) whether the Government considers it worthwhile and practical to issue study loans without any service bonds attached to achieve their manpower planning purposes; and (c) whether study loans as an alternative to Government scholarships will be affordable for lower-income families wishing to send children to better universities abroad. The Deputy Prime Minister (BG Lee Hsien Loong) (for the Prime Minister): Mr Speaker, Sir, with your permission, may I take Question Nos. 8 and 9 together?”
“Sir, the purpose of the ERP is not just to spread the traffic. If we take it from the point of view of what Dr Lee mentioned where people are just avoiding the traffic jams alone, I think that in itself is not going to solve the problem. The purpose of this exercise is to offer more than just that option. There are other options involved which include - and this is most important - either a forgoing of trips because the trips are not necessary or a shift from private to public transport. We have not done a comprehensive survey because we have just started to implement the system. Such a survey will be part of the overall strategic traffic studies that are done on a regular basis, and these figures will come out. But the overall impact of ERP as far as direct Government revenue is concerned is that there has been a reduction. In other words, motorists are actually keeping 40% of the money. What do they do with this money? Whether they decide to keep it and to travel longer distance or they decide to keep it and use it for public transport or they decide to share a car with their colleagues and split the cost, that we do not know at the moment. But we have given them several choices. It is up to them. And if they believe that their time is not worth the money that they need to spend to pay ERP or if they believe that a train is more comfortable and faster, which in some cases it is, that is also their choice. SCHOLARSHIPS BY PUBLIC SERVICE COMMISSION AND STATUTORY BOARDS (Abolition of awards) 8. Dr Wang Kai Yuen asked the Prime Minister whether the Government will abolish awarding scholarships by the Public Service Commission and statutory boards and, if so, when. SCHOLARS (Breaking of service bonds) 9.”
“Currently, commercial vehicles pay only a quarter of their full ERP rates, except for the CTE, where they pay half the rate. Whether it is quarter or half, this is still much lower than what they were paying under the manual road pricing scheme. In fact, owners of commercial vehicles will save about $63 million in the first year of ERP implementation. Dr Lee asked for a comparison between the ERP and the manual Area Licensing Scheme (ALS). With ERP, traffic is now better spread out with charges corresponding more closely to traffic conditions. Travel speeds in the Restricted Zone (RZ) range from 20 to 30 km per hour and on the expressways between 45 and 65 km per hour. At these speeds, the roads and expressways are carrying close to their designed capacity while remaining congestion free. ERP rates are also lower than the corresponding ALS fees. For example, the ALS fee for cars was $3.00 during peak periods and $2.00 during off-peak periods. Now, with ERP, the Restricted Zone rates range from $1.00 to $2.50. And on Saturdays, it is now free entry. Government revenue from ERP today is about 60% of the revenue under the manual ALS/RPS schemes. This is expected to decrease further following the last rate adjustment in April 1999, which saw the lifting of ERP on Saturdays and reductions in charges for some time periods in the RZ and on one of the Expressways. This demonstrates clearly that ERP is a traffic management tool, not a revenue-generating instrument. The objective of ERP, I repeat again, is to keep our roads congestion free and smooth flowing while allowing our vehicle population to increase. In so doing, it helps to maintain Singapore as an attractive and efficient place to live in and do business in.”
“Today, it is 680,000, an increase of almost 150%. Over the same period, our road network has increased by 44%. Trips made by public transport has gone up by about 90%. The bottom line is that while cars have increased, our roads are still free-flowing because more people are using public transport. However, pockets of congestion are appearing in areas outside the CBD and along the expressways. Moreover, they are spreading from the morning to the evening peak hours as well. This is not surprising as our vehicle population is continuing to expand faster than our road capacity. That is why we need to expand the ERP. The LTA will shortly announce the exact locations of the first seven gantries to be implemented on 1st September 1999. Other gantries will be considered when the traffic conditions demand them. Mr Rai asked about the rates that will be charged at these gantries. They will only be fixed closer to the date of implementation, ie, in September 1999, based on the prevailing traffic conditions then. Mr Tay asked about lowering charges for commercial vehicles. When ERP was introduced last year, the Government, as promised, lowered the cost of vehicle ownership. Up-front and annual ownership taxes such as Customs Duties, Registration Fees, Additional Registration Fees and road tax were significantly reduced. The majority of vehicle owners, including owners of commercial vehicles, enjoyed substantial savings in annual road tax, ranging from about $280 per year for cars to as much as $2,000 per year for commercial vehicles. In addition, all vehicle owners were given a road tax rebate of $200 per PCU. We have also helped businesses to adjust to ERP by phasing in the charges for commercial vehicles over four years.”
“Sir, the ERP is a critical policy instrument to manage congestion on our roads. Together with the Vehicle Quota System, they keep our roads flowing freely, so that goods and people do not get stuck in traffic jams. In other words, and this is in response to Mr Tay's question, the ERP has had a positive impact on business, not only in direct cash terms but also in terms of faster travel times that lead to overall lowering of transport costs. This ultimately helps us to maintain our competitiveness as an efficient international manufacturing, logistics and business centre. As our vehicle population expands, in order to cater to growing demands from business and to meet the aspirations of our people, the challenge to keep congestion at bay will become increasingly more difficult. Our choices are limited. We can build more roads, but we will have to sacrifice land for housing, schools, industries and recreation. This is not an option for most Singaporeans. We can restrain car growth. Again, this is not an option if we are to give young Singaporeans and those who can afford their chance to own a car. Finally, we can manage the traffic on our roads, by encouraging better use of our limited road space through ERP. This is the preferred option. With ERP, motorists are more careful about using their vehicles. They have several choices. Do they have to drive? Can they take a bus or train? Can they share a car with friends or colleagues? Or can they switch their travel to a less congested time? If they really need to drive at peak hours, they are free to do so, and in return for a small fee, they enjoy a smoother and faster ride. Our experience with ERP and ALS has been positive. In 1975, when road pricing was first introduced, total vehicle population was 280,000.”
“Mr Speaker, Sir, may I have your permission to take Questions 5, 6 and 7 together as they are related?”
“Sir, if the letter asking for payment is sent out and if within two weeks, no reply is given, that is tantamount to an offence. For such an offence, a levy of $70 is deemed to be the charge. In other words, a motorist is given two weeks to pay up, failing which he is deemed to have committed an offence. In the same way that he does not pay a parking charge or he does not pay any other Government charge, he is deemed to have committed an offence. And a notice of offence is then sent out. ELECTRONIC ROAD PRICING SYSTEM AND AREA LICENSING SCHEME 5. Dr Lee Tsao Yuan asked the Minister for Communications if he will provide a comparison of the Electronic Road Pricing system with the Area Licensing Scheme and the changes which have occurred with regard to (i) road traffic patterns and (ii) revenue collected. 6. Mr Tay Beng Chuan asked the Minister for Communications (a) whether his Ministry has evaluated the business cost implications of extending the electronic road pricing in September 1999; and (b) whether it has considered levying a lower charge on commercial vehicles to bring down their business costs. 7. Mr Shriniwas Rai asked the Minister for Communications when the Land Transport Authority will release the fee to be charged at the new 9 Electronic Road Pricing gantries.”
“I do not know where the hon. Member got the idea of a punishment from. I have just gone through a lengthy reply to the Member of the House to explain to him that we do not regard this as an offence. We regard this as non-payment of a fee. We wish to collect that fee and therefore we have to go through this exercise. The process of going through that exercise incurs expenses and manpower, and the charge for this expense and manpower is, at the moment, $10. It could go up, if the cost of administration goes up. But as far as we are concerned, at this stage, we are recovering the cost of administration, plus the ERP fee.”
“Sir, as the name suggests, the administrative charge is to cover all the costs related to the administration of this new scheme which include the tracking of the offences, making sure that the motorists who do not pay the ERP charge do so within the two weeks and if they do not, making sure that they are issued the composition fine of $70. All this involves administration, manpower, computer time and it also involves the setting up of a total framework to make sure that such a violation scheme is not abused. After all, the purpose of this scheme is to make sure that motorists do use the system as it is intended, which is to have an IU installed, to have a valid CashCard inserted and to make sure that each time a motorist uses an ERP-controlled road, he pays the fee. More than 99% of people do that. To cater to the small group of people who forget to do so, we have amended the system, according to feedback from Members of this House. We agree that under the ERP system, nobody can escape. Unlike the old system where people had to put up a disc, and some who did not put up a disc were not people who forgot to do so, but were people who were out to cheat the system. And that was when a composition fine was imposed. Under the ERP system, such a situation does not occur, because every motorist who passes through the gantry will be detected. So, on that basis, we have decided to change the system, and I hope motorists will continue to use the system as it is intended. But if they do not for whatever reason - forgetfulness, carelessness or whatever - they are not overly penalised, as it were.”
“Sir, in order for the new scheme to come into operation, changes will have to be made to the administrative system and that will take some time. LTA will require some more time before it can implement the system. So current defaulters under the scheme would continue to be treated according to the present administrative regime.”
“Mr Speaker, Sir, may I have your permission to take Question Nos. 3 and 4 together?”
“The Land Transport Authority does not object to the introduction and use of LPG vehicles in Singapore if they meet internationally recognised safety standards. However, the Ministry of the Environment and the Ministry of Home Affairs have certain requirements regarding the bulk handling and storage of LPG which may impact the feasibility of using LPG vehicles. For instance, though Liquefied Petroleum Gas or LPG vehicles might be emitting lower levels of particulates and other pollutants than diesel-driven vehicles, LPG is a highly flammable substance - more so than petrol and diesel. With Singapore as a densely populated society and where many of the petrol stations are co-located with housing estates, the bulk transportation and storage of LPG in petrol stations are potential fire hazards. These safety standards would have to be properly addressed if LPG vehicles were to be used in Singapore. MOSQUE IN HONG KAH GRC 3. Mr Harun A Ghani asked the Minister for Community Development and Minister in charge of Muslim Affairs when a mosque will be built at Hong Kah GRC (Nanyang, Jurong West and East).”
“NUS students who use buses frequently could consider purchasing concession bus stamps, which offer unlimited travel of SBS and TIBS buses for a monthly fee of $44 to $50, and they can travel as much as they want on all the trunk and feeder bus services. And to help the commuting public during the economic crisis, the transport operators have offered a 5% rebate for all farecard top-ups and concession bus stamps are also given a 5% discount. Lastly, to answer Mr Rai's point about distance-based fares. Yes, in fact, we are moving towards distance-based fares, but the bus fare structure is based on two components. One is the upfront component and the other is the distance-based component. The reason why we need to have an upfront component is because whether you travel a long or short distance, there is a certain amount of overheads bus companies have to incur. Therefore, it is unreasonable to ask the bus companies to charge very small bus fares for a very short distance because the overheads incurred are much more than that. That is the reason why we have these two components. For longer distance travel, we have increased the number of fare bands from 5 to 7 and that is in line with Mr Rai's suggestion of a distance-based concept. The Parliamentary Secretary to the Minister for Communications (Dr Yaacob Ibrahim): Sir, on classic cars, we take note of the request but we will address it in view of our greater emphasis on usage rather than ownership measures. On taxi-driver's refresher course by Mr Seng Han Thong, I will ask LTA to study how we can incorporate some of his suggestions. On the question by Mr Chiam, it was a suggestion by Malaysia but we have not received any formal proposal. Hence there is nothing on the table yet for us to discuss.”
“These plans will have to be approved by PTC and, in the beginning, the services will be such that it will cater to a smaller population in the town. But as the town develops and more and more people move into the town, the bus operators and PTC will monitor the transport needs very closely and upgrade the bus services accordingly. That is why as the Member has pointed out that on 7th March, a new bus service was introduced in the Toh Guan Estate. That was because of this procedure. But I would ask PTC to see whether we can improve on the responsiveness and whether we can provide bus services earlier. Undoubtedly, in the beginning, because the population is small, there will be some inconveniences and you cannot introduce bus services in very fine increments and so there is this problem. Nevertheless, I will ask PTC to see whether we can be more responsive. Mr Peh talked about bus service No. 96 from Clementi Interchange to NUS and asked whether it could be changed to a feeder bus service and reduce its fare to 30 cents. Feeder bus services are generally for travel within the town and this is the definition that the bus company and PTC agreed to and, therefore, this service, as Mr Peh has pointed out, is not considered as a feeder service. We should not arbitrarily convert trunk buses to feeder buses because feeder services are generally not viable and heavily subsidised by other commuters. If we change that, there are many other short distance services that can also be changed to feeder service, and that will have a serious impact on the viability of the bus companies.”
“45 pm The Minister of State for Communications (Dr John Chen Seow Phun): Sir, Mr Yeo, Mr Rai and Dr Wang commented positively on the development of our public transport industry. Nevertheless, they asked that we continue to improve and shorten the travel time. Let me say that, in fact, there are a few things that we are doing to improve public transport. Firstly, the Minister has mentioned about the public transport industry restructuring, which we have started. That will bring in more competition. Secondly, the Minister has also announced that LTA is embarking on a comprehensive development of rail systems. If we have a comprehensive rail network, it will help to reduce travel time as we rely more on rail and less on bus services which have limitations due to routing and traffic jams. Thirdly, we will do all we can in using technology to improve the services for bus commuters. One good example suggested by Mr Rai is to have the bus schedule and bus arrival times to be made available to commuters. For his information, LTA is currently developing a system called the Travel Information System (TIS). LTA will work with the bus operators and use satellites, GPS, and so on to estimate accurately bus arrival times at every bus stop and we can display them at bus stops and over the Internet as well. All these will work towards improving the bus services. Let me also answer the question by Dr Wang Kai Yuen about whether PTC can be more responsive to the needs of residents for bus services in new towns. Let me inform him that before the people move into a new town, the bus operators, LTA, HDB and JTC will come together and draw up a conceptual plan for the town.”
“These changes in the fare systems that we are talking about today can be looked at in a more comprehensive way. To move towards this structure, the first step is that we have invited SBS and TIBS, who are both bus operators, to tender for the operation of the North-East MRT Line as well as the Punggol and Sengkang LRTs. This is not to suggest that the SMRT, as Mr Chay asked just now, is not doing a good job. On the contrary, it is doing a good job. However, we are taking this opportunity to look at a new structure for the industry and taking this opportunity, with the advent of the North-East Line, to encourage bus operators to go into train operations. And vice versa because we will also be encouraging the train operator to do likewise. Is this a step towards deregulation? This will allow us to deregulate because once we have a multi-modal environment and we have two or more multi-modal operators, I envisage that we will also have room to accommodate smaller single mode operators, essentially bus operators. We already have private bus operators. Scheme B operators are already covering or plying some of the routes. But they are not sufficient to give that competitive push to the major operators. I recognise that. And in this multi-modal environment, I hope that we will be able to further deregulate bus routes and allow more direct competition amongst single mode bus operators and multi-mode operators. But this has to be done in a managed and sustainable manner and my Ministry will be reviewing the regulatory and licensing framework to achieve this. I will ask my Minister of State and Parliamentary Secretary to answer the other questions. 3.”
“Sir, in the interest of time, I will give a very brief response to an issue which, I think, really requires much more time. This is the issue of multi-modality. Both Dr Lee and Mr Chay Wai Chuen touched on this issue in their questions. The purpose of this move towards multi-modality is really to improve the overall public transport system. I use the words "public transport system" because, right now, what happens is that we have operators that run buses and we have operators that run trains. We do not have operators that run both. This is really not ideal from the point of view of the commuting public. And, indeed, neither is it sustainable from the point of view of the industry as a whole. If Members will recall, as we extend our rail network, what happens is that the buses will lose their market share. Over time, as we envisage a more extensive rail network, the buses will gradually lose more and more of their market share. Eventually, what we are going to see, if we do not do anything, is that the bus operators will lose their ability to cross-subsidise. In fact, there is a lot of cross-subsidisation that goes on within the system. But if all the major routes are taken over by trains, the bus companies will lose their so-called lucrative services, the cream of their services. Eventually, the ability to provide those services which Mr Rai and Dr Lee talked about and which are losing money, that ability to cross-subsidise will be gone. So that is another reason why we are moving towards this system of multi-modal environment. In this environment, buses and trains will be operated by a single operator. There will be better integration, synchronisation of timing, and, hopefully, integration will also lead to better fare systems.”
“The 3% per annum compound growth in vehicle population for the next five years can only be sustained - and this is for Mr Iswaran's note - if we expand the ERP. I hope that motorists will not simply divert their trips from ERP roads or ERP hours but seriously consider alternatives such as public transport and car pooling.”
“Secondly, and this is an important point, we wanted to make motorists aware and more conscious of the cost of motoring, that every time you pass through a gantry, you are aware that it is costing you something. Thirdly, it helps us to move towards a cashless society by encouraging the use of smartcards. Lastly, and this is not a trivial consideration, with a monthly billing system, privacy could be an issue if motorists are concerned about having details of their movements being recorded. According to some accounts, the main reason why road pricing was rejected very early on in Hong Kong was because of the privacy consideration. Given the complexity of the system, we did not want, in the initial stages, to complicate the system further. But I do not rule out the fact that as motorists become more aware of the system, as they become more used to it, as the system beds down more, we can consider introducing some of these refinements that Prof. Chin suggested. In conclusion, Sir, we have achieved a major milestone in land transport policy when the ERP system successfully replaced the manual ALS and RPS systems last year. Technically, it is working to our satisfaction. From the transport perspective, it is achieving its purpose of spreading traffic and keeping our roads free flowing. And, most importantly, 700,000 motorists, who have IUs fitted, have become familiar with the system and the majority have no problems with the system. Although our vehicle ownership and usage management measures may seem harsh at times, motorists understand that they are necessary if we are to keep our goods and people moving, our economy buzzing, our quality of life improving. These two traffic management tools must not be seen in isolation. They go hand in hand.”
“We reduced the ERP composition fine to $30 in May last year. Prof. Chin thinks that $30 is still too much. Since the full implementation of ERP in September last year, the number of cases has dropped from about 1,200 cases daily to less than 800 cases a day now. If you look at these 800 cases, this is something like 0.3% of the total number of transactions we have every day going through the gantries. More than 99% of motorists have no problem in ensuring that their cashcards are properly inserted. I am sure that over time, the habit of inserting cashcards into the IU before beginning a journey will be well formed. But I do sympathise with the point of view of Prof. Chin. If we can come up with a fair system which does not take up too much administrative effort or resource, to allow motorists who forget to insert the cashcard to somehow pay for the outstanding ERP charge plus an administrative surcharge - I am glad he mentioned that - then I think it is an idea worth looking at. I will ask the LTA to look into this. On the other option he suggested of having a monthly billing system, I am not so sure whether this will be a very popular option. We did discuss this when we first designed the ERP system and we toyed with the option of having a monthly billing system where everybody gets a monthly bill, and no worries about inserting the cashcards or forgetting and being fined. But we opted for the smartcard system because of several reasons. First, we wanted to do away with this very expensive and elaborate central accounting system, because this is what we need in order to keep track of all the 700,000 motorists going through the gantries.”
“It is not just one solution alone. The longer-term solution is to provide more public transport options for people living in north-east and this is where the north-east MRT line is going to be useful. The north-east MRT line will be ready in 2002. In the meantime, before that is ready, before the CTE-Braddell Road interchange is implemented, some other solutions will have to be found and this will include increasing ERP rates for all vehicles and implementing additional ERP gantries along the CTE. 2.45 pm Mr Yeo also suggested an additional expressway, which he called the North East Expressway. He will be pleased to know that there is indeed a plan for such an expressway in the long-term transport plan to serve the north east area. In fact, there will be two expressways. One will be called the Kallang Expressway and the other will be the Paya Lebar Expressway. The Kallang Expressway will connect the East Coast Parkway to the Pan-Island Expressway. So it will divert traffic down this route. The Paya Lebar Expressway will be a continuation of the Kallang Expressway northwards to link up with Tampines Expressway. Alignments of these expressways are being finalised and are expected to be completed by 2006. Let me now turn to a very interesting proposal by Prof. Chin on ERP violations. Yes, I agree that ERP violations are mainly due to forgetfulness or carelessness on the part of motorists. I do not think anybody wants to cheat the ERP system. In fact, they know that there is a very low chance of success if they want to do that, which is a testament to the technical integrity of the system. Originally, when we had the ALS system, paper licence system, the fine for going through the gantry without displaying a licence was $70.”
“We have tried to delay it for as long as possible but the traffic situation there has reached a stage where it has become necessary to introduce ERP on the AYE as well. LTA will announce details of the gantry positions and the rates to be applied for the ERP Phase II in due course. I turn now to the problem on the CTE. It appears to be a peculiar problem. It has generated interest among Members of Parliament whose constituencies are in the north and north-east areas. Mr Chew Heng Ching, Mr Yeo Guat Kwang and Mr Sin Boon Ann pointed out correctly that the ERP on the CTE alone is not solving the problem. The LTA is aware of the problem. The congestion is caused by several factors. Firstly, in the early stages, because of the pricing that we introduced, many more taxis and commercial vehicles made use of the CTE relative to the number of private cars. That was resolved last year when the ERP rates for these vehicles were raised. This has alleviated, but not solved the problem because there are other reasons for the congestion on the CTE. It is an expressway with many entrances and exits and serves very huge housing estates in that part of Singapore - Sembawang, Yishun, Ang Mo Kio and even Tampines and Pasir Ris. These are all in the north and north-east. CTE also links a number of major material roads. What happens is that many motorists exit the CTE before the ERP gantry point at Braddell and this causes a big tail back. The exit at Braddell Road is also a very congested and narrow exit. LTA will, first of all, expand that CTE-Braddell Road interchange. Tenders have been called this year, work is starting middle of this year and should be ready by the year 2002. But Mr Yeo Guat Kwang is correct to say that there has to be a whole series of solutions.”
“To answer Mr Iswaran, while the policy objective of the ERP has not changed, it remains one of optimising road space. We will have to extend ERP to tackle congestion where and when it exacts a toll on road users, and consequently, on the economy and our way of life. Congestion has moved beyond the CBD and the expressways to the ring roads. We have to expand ERP in tandem. Whether there will be a 24-hour coverage of the ERP throughout the island is not for me to say now. But if we had traffic congestion for 24 hours a day, do you think we should also have ERP 24 hours a day? I think that is an interesting question, which I will not answer now. But if the situation arises where we have intolerable traffic congestion and our roads are clogged and there is a cost associated with that, should not we make use of all the available measures to tackle the problem? For the second phase of the ERP implementation plan, LTA has recommended implementing this additional cordon outside the CBD. This will be done progressively with effect from September 1999. The cordon will include the existing congested bottlenecks like the PIE at Adam Road in the direction of Changi, Thomson Road, Bendemeer Road and Kallang Road towards the city. The exact gantry locations and the ERP rates are still under study and will depend on the prevailing traffic conditions at those points during morning peak periods. This cordon, to answer Mr Iswaran, will also include a point on the AYE. I previously indicated that the AYE would be the next place where road pricing could occur because of the deteriorating traffic conditions on the CTE which is at present the only major expressway into the city not subject to ERP.”
“LTA has measured some of the travel speeds in these areas and some of them have actually fallen below 20%. If you project the situation forward, if you do a simulation, you will see, and this is what LTA has done, that the congestion level of these roads will worsen significantly during the next few years if nothing is done. What does this mean? Even if you have a very congestion free CBD, if you are driving into the CBD from outside, you will find that it will take you longer to get to your destination. You have got to battle through the jams on the outer ring roads before you can even get to the CBD. And obviously, this is going to completely nullify the positive effects of the various measures that we have taken to keep the CBD congestion free. Our experience with road pricing and with traffic congestion tells us that we have to nip this problem in the bud before it gets worse. So, we have to move away from the idea that ERP is only for the CBD and expressways. Indeed, if we look back at our history of road pricing, as Mr Iswaran pointed out just now, it was clear that as vehicle population grew, congestion slowly but surely spread from the CBD onto the ring roads, and the expressways. We started out with ALS in the CBD in 1975 for the morning peak only. As traffic grew, we extended the ALS to the evening peak in 1989. In 1994, traffic started to build up again in between the two peaks, so we had to implement ALS throughout the day. Then, the expressways became congested. So we implemented road pricing on the expressways, first, on East Coast Parkway in 1995, then on the CTE and the PIE in 1997. It is almost unavoidable that we will have to tackle the increasing congestion problem on the ring roads.”
“As I said earlier, we do not want roads to be under utilised, neither do we want it to be over congested. So, if roads are under utilised in this review, rates will go down. Conversely, if congestion has worsened, rates will go up. Mr Chew and indirectly, Mr Iswaran, also expressed some concern about the side effects of the ERP. For example, will it move congestion away from those roads that are priced to those that are unpriced outside the CBD area? With road pricing, motorists have a choice. They can either choose a smooth journey or they can use the unpriced roads and tolerate some congestion or some delays. Whether that congestion level is tolerable or not, really depends on the individual motorists. Some are prepared to tolerate very high levels of congestion, others do not want to see a single traffic light. So, this is what was taking place in the early stages of road pricing. However, over time, we must expect that the unpriced roads will become more and more congested. Our vehicle population continues to grow, 3% on the average per annum compounded over the last nine years, more than that earlier. According to LTA's traffic surveys, the traffic conditions outside the city, between the CBD and the outer ring zone, have been deteriorating. In fact, the roads just outside the restricted zone have become more congested than those within the zone. Currently, the traffic in the region between the CBD and outer ring roads --- a series of roads which include Queensway, Farrer Road, Adam Road, Lornie Road, all the way to Braddell, Upper Aljunied, Mountbatten and Fort Road --- areas like Thomson Road, Upper Serangoon Road, MacPherson Road, Rochor Road, these areas are all beginning to experience more and more severe congestion during peak hours.”
“Sir, when we were discussing the Vehicle Quota System review, I mentioned that the Vehicle Quota System is one of the key pillars of our traffic management strategy. Now we are talking about the second pillar of our traffic management strategy which is electronic road pricing. I think the difference between what we introduced last year and what we have been practising for the last 24 years is simply that we have mechanised it. We just added the "E" to the "RP". Road pricing is something that we have practised since 1975. With 24 years of experience in road pricing, there is no doubt in anybody's mind now that it works. Motorists who use our roads now are more conscious about planning their journeys and those who do not find it worthwhile will either change the time of the journey or they change their routes. There is something else which the Ministry would like to see more of, that is, shift to public transport or car pool. Those who are prepared to pay enjoy a relatively smoother and faster ride. But is that sufficient? First of all, I would like to take Mr Chay's query on how we are going to assess the criteria of adjusting ERP, whether it is the rates or the locations. As far as the rates are concerned, the objective of ERP is really to smoothen traffic flow, that is, to optimise the usage of our roads. I use the word "optimise" because this means that we do not want the roads to be under utilised, as much as we do not want it to be over utilised. Last October, LTA mentioned that it will be reviewing the ERP rates on a quarterly basis and this will be done based on the prevailing traffic conditions. LTA has finalised the criteria governing ERP rate changes and will be announcing them shortly. The first rate adjustment will be made on 1st April, next month.”