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.”
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“Air traffic service arrangements are drawn up under the auspices of the International Civil Aviation Organisation (ICAO) which is the international organisation responsible for the safety and efficiency of international civil aviation. The existing arrangement over Southern Peninsular Malaysia has been in existence since 1975. Under this arrangement, Singapore undertook the responsibility to provide air traffic services without charge to all users, thus ensuring that air navigation in this area is conducted with the highest level of safety and efficiency. Everyone in the international civil aviation community, especially airlines, pilots and air travellers, benefits from this arrangement. It has also contributed to the growth of air traffic and helped develop economies and airports in the region. Any changes to air traffic service arrangements are normally discussed and endorsed by ICAO because it involves issues of safety and efficiency and is of vital concern to all members of the international civil aviation community. COUNSELLING PROGRAMME 10. Mdm Claire Chiang See Ngoh asked the Minister for Community Development, since the amendments to the Women's Charter in May 1997, how many referrals have been made to his Ministry by the Subordinate Courts for mandatory counselling of abusers; how his Ministry implements and evaluates the effectiveness of the counselling programme; and if a plan has been put in place to increase the pool of counsellors and support resources for handling such cases.”
“The ERP system is a fairer and more equitable system than the previous manual ALS and RPS. It is part of our revised traffic management policy, which reduces the cost of motoring for those who choose to make less use of our roads and help keep traffic free-flowing. As such, my Ministry will not suspend the implementation of the ERP on the CBD. However, we will monitor the traffic conditions and adjust the rates to ensure that motorists are not charged more than is necessary to keep traffic free flowing on our roads. SUBSIDISED RETRAINING PROGRAMME FOR EXECUTIVES AND PROFESSIONALS 26. Mr Chuang Shaw Peng asked the Minister for Manpower whether the Government plans to have any subsidised retraining programme for executives and professionals, similar to the Skills Redevelopment Programme (SRP) for lower-skilled workers.”
“The ERP system is a traffic management tool. It is not to generate revenue. Its primary purpose is to bring about a smoother flow of traffic, and more efficient use of our road network so as to support economic activities and to maintain a clean and safe environment. ERP is a major component of the Government's traffic management policy, which emphasises usage rather than ownership restraint. Part of this policy has already been implemented this year in the form of major vehicle tax reductions and ERP rebates. For example, an average 1600 cc car will pay about $440 less in taxes due to the road tax reduction of $240 and ERP road tax rebate of $200. An average heavy goods vehicle will save about $580 in annual road tax due to the road tax reduction of $280 and ERP road tax rebate of $300. In addition, the Registration Fee for new heavy goods vehicles was reduced from $14,000 to $140. The overall package will cost the Government about $1 billion over 5 years. The majority or 76% of motorists who do not use the ERP will enjoy the full savings. 15% of motorists who make only one ERP pass per day will also save as the rates are no more than their previous ALS/RPS charges. In fact, we have introduced lower ERP rates on the expressways to spread out traffic to the shoulder periods when traffic volume is lower. For the CBD, we have lowered ERP rates generally and shortened the ERP hours on Saturday. The rest of the motorists who make more than one ERP pass per day will have to plan their trips carefully and adjust their travel patterns to minimise their ERP cost. Some businesses will need time to adjust to ERP. Hence, we decided to phase-in the ERP charges for commercial vehicles and taxis over the next 4 years.”
“The island of Pulau Pisang belongs to Malaysia. Singapore currently operates the lighthouse on Pulau Pisang. Under an indenture dated 6th October 1900, the Sultan of Johor granted the plot of land on which the lighthouse stands, as well as the roadway leading to the lighthouse, to the Straits Settlement and its successor, Singapore. The total plot of land granted to Singapore amounted to just over two acres. According to the indenture, this arrangement continues in perpetuity as long as Singapore operates the lighthouse. The lighthouse is a navigational aid for ships passing through the Malacca Straits. At any one time, the Maritime and Port Authority of Singapore deploys two lighthouse keepers on Pulau Pisang. The two-man lighthouse crew is rotated every 10 days. There is a long-standing arrangement between the Singapore and the Malaysian authorities to allow the lighthouse keepers to travel directly between Singapore and the lighthouse by boat. This arrangement is still in force and has not been changed. SUSPENSION OF ELECTRONIC ROAD PRICING 25. Mr Kenneth Chen Koon Lap asked the Minister for Communications, in view of the deteriorating economic crisis, if the Minister will consider suspending the implementation of the Electronic Road Pricing system to the Central Business District for a period of 12 months.”
“Air traffic service arrangements are drawn up under the auspices of the International Civil Aviation Organisation (ICAO) which is the international organisation responsible for the safety and efficiency of international civil aviation. The existing arrangement over Southern Peninsular Malaysia has been in existence since 1975. Under this arrangement, Singapore undertook the responsibility to provide air traffic services without charge to all users, thus ensuring that air navigation in this area is conducted with the highest level of safety and efficiency. Everyone in the international civil aviation community, especially airlines, pilots and air travellers, benefits from this arrangement. It has also contributed to the growth of air traffic and helped develop economies and airports in the region. Any changes to air traffic service arrangements are normally discussed and endorsed by ICAO because it involves issues of safety and efficiency and is of vital concern to all members of the international civil aviation community. ACCESS TO LIGHTHOUSE ON PULAU PISANG 24. Mr Inderjit Singh asked the Minister for Communications what arrangements the Singapore Government has with the Malaysian Government on the access to and management of the lighthouse on Pulau Pisang and whether there have been any recent moves by the Malaysian Government to restrict Singaporeans access to that island.”
“I believe that the lawyers of SilkAir and the lawyers of the next-of-kin of the deceased are in touch. SilkAir has made provisions for advance compensation to the next-of-kin up to an amount of $20,000. This was to help in some of the expenses incurred. However, not all the next-of-kin have taken up that offer. Nevertheless, I believe that discussions are ongoing with the rest of the next-of-kin.”
“Sir, the investigation report will be issued by the Indonesian authorities. As to the modalities of presenting the investigation report, I will have to discuss with the authorities concerned. But, definitely, I will endeavour to at least make a statement in this House when the report is finally published.”
“Mr Speaker, Sir, my Ministry is in constant touch with the investigation team, which is led by the Indonesians but active participation comes from Singapore as well as the NTSB of the United States. I would like to assure the House that the investigation led by Indonesia is very professionally done. It is still very active. The current troubles in Indonesia are not affecting the investigation. Prof. Diran, who is the leader in charge of the investigation has been misquoted in the press as saying that the investigation has been completed and he has come out to clarify the situation. I believe that he will be issuing further statements to update the public on the progress of the investigation in due course.”
“Mr Chew Heng Ching asked the Minister for National Development whether the Housing and Development Board will review its subletting fee structure on its leased premises in view of the deteriorating economic conditions.”
“The roadworthiness of motor vehicles using Singapore roads is ensured through regular inspection of the motor vehicles by authorised inspection centres. This practice in the motor vehicle repair services has served us adequately. Other countries operate differently. The UK Institute of Motor Industry practises self-regulation. It has a code of conduct to guide its members in their performance standards and in dealing with the public and the industry. The UK Retail Motor Industry Federation does likewise. The American Automobile Association (AAA) and Society of Automotive Engineers (SAE) in the USA also adopt similar practices. At home, a similar scheme has been adopted by the home renovation industry and is working well. The Renovation and Decoration Advisory Council (REDAC) was set up in 1986 by the Consumers' Association of Singapore (CASE), Renovation Contractors' Association of Singapore, Singapore Building Materials Suppliers' Association and Singapore Institute of Material Management to promote and regulate the highest standard of conduct and good practice by industry members. It gives advice and assistance to contractors and consumers in the observance and enforcement of the Singapore Renovation and Decoration Code of Practice. This model of an industry regulated code of practice is worth considering for the motor vehicle industry. The Automobile Association of Singapore together with the relevant motor and motor repair industry associations could consider setting up an industry council to set the standards or code of practice to regulate the quality of service provided by motor repair workshops. HDB SUBLETTING FEE STRUCTURE 7.”
“EMAS was implemented on the Central Expressway (CTE) on 21st March this year. Since its installation along the CTE, it has yielded significant benefits for motorists. It has enabled the LTA to provide assistance to distressed motorists and to clear obstructions to traffic flow more quickly. It is estimated that for the CTE, EMAS yields a time saving worth about $6.8 million per year for motorists because of quicker removal of disabled vehicles by LTA's vehicle retrieval service. In view of the evident benefits of the system, the LTA has decided to extend EMAS to the other expressways. EMAS is scheduled to be extended to the Pan-Island Expressway, East Coast Parkway, Ayer Rajah Expressway, Bukit Timah Expressway and Kranji Expressway by 2000 and to the Tampines Expressway and Seletar Expressway by 2001. OBJECTIONS TO ASSESSMENT OF ANNUAL PROPERTY VALUES 40. Dr Teo Ho Pin asked the Minister for Finance (a) how many objections have been received since January 1998 concerning the assessment of annual value of property; and (b) what are the measures taken by his Ministry to expedite the handling of such objections.”
“CONTROL OF PLANTS (AMENDMENT) BILL Order for Second Reading read. 5.12 pm”
“Mr Chay also asks why the conversion rate is set at the date of judgement rather than at the date of event. This is part of the international agreement that has been thrashed out and settled among various countries. There must be a reason why they have set it at the date of judgement. I am not familiar with the reason why that has been so. But that is an international convention and Singapore is obliged to follow. If he is interested, I can find out the reasons and respond at a later date. Finally, on competitiveness of oil refineries and whether Singapore oil refineries will be affected in terms of high cost. As I indicated earlier, before we acceded to this convention, we canvassed the opinion of all interested parties from Singapore, including the oil refineries, and all oil companies have expressed support for this convention. I believe major oil companies in Singapore, they are multi-national companies, find it in their own interest for Singapore to accede to this convention. Firstly, it means that they are actually protected because CLC 92 sets a cap on their liability; and, secondly, I understand that they do buy insurance, they contribute to private insurance anyway. So the contributions to this convention would, I assume, be in lieu of contribution to their own private insurance funds. In that sense, I do not think that there will be any major impact on their competitiveness. I believe those are the few questions that were raised. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Mah Bow Tan]. Bill considered in Committee; reported without amendment; read a Third time and passed.”
“CLC 69 coverage is sufficient to cover any contingencies that we anticipate, if we are fully prepared for such emergency. However, to be safe we have decided to accede to CLC 92. The Member also asks about higher insurance premiums and what happens to ships of countries that do not accede to the CLC 92 Protocol. Based on international convention, first of all, ships of countries that are party to CLC 92 will have no problem because under that convention they are obligated, as Singapore-registered ships are, to obtain the necessary insurance. However, ships which are not a party to CLC 92 will need to obtain a CLC 92 certificate to call at Singapore. What this means is that they must obtain the necessary insurance which will provide for the higher limits of indemnity required under CLC 92. In actual fact, the Protection and Indemnity (P&I) clubs that insure the ships and provide the insurance certificates informed us that most probably there will be very little or no increase in premium for a CLC 92 certificate as compared to a CLC 69 certificate. This means that there will be very little cost impact on ships calling on Singapore. Because the P&I insurance cover today is already very high, there would not be any significant increase in the premiums which means therefore that the cost impact on ships will also be negligible. Are Government ships exempted? The two Protocols (CLC 92 and Fund 92) only apply to ships which are constructed for the carriage of oil in bulk as cargo and also of course to the spillage of bunker oil in the ships. So if such a ship is owned by government, by a state, or by a state-owned company, then the convention will apply to those types of government ships.”
“Sir, I thank Mr Chay for supporting the Bill. He asks why is it that we took so long to operationalise these two conventions (CLC 92 and Fund 92). Let me just point out that although they were adopted by IMO in 1992 (hence the name CLC 92 and Fund 92), both these conventions have only entered into force internationally in 1996, two years ago. The practice is to have a minimum number of countries accede to the protocol before it comes into force. It is our practice to accede to these conventions after it comes into force internationally. When it did so in 1996, the Government then started the process of consultation with various interested parties. In our case, of course, we consulted not only Government agencies and Ministries, like MTI, TDB and so on, but also other relevant parties in Singapore like the Singapore Shipping Association (SSA), oil traders, oil refiners and so on. That was done and completed last year and the Fund was acceded to last year and will go into operation this year. So I can assure the Member that there was no undue tardiness in this area. As to what happens in between CLC 69 and CLC 92, in the period before CLC 92 comes into force, we are still governed by the provisions of CLC 69. If there are any pollution incidents that happen now, these will be covered by CLC 69. The Member mentioned the Evoikos incident. I would like to inform him that based on the estimates of the damage that has been caused by the Evoikos incident, MPA is confident that the clean up cost will be covered or met in full under CLC 69, the old convention. This of course is due in no small part to the fact that MPA and the relevant agencies took swift and preventive action to ensure that the damage was not unduly extensive.”
“The amount of contributions is to be fixed by the Fund. The Fund shall, subject to certain prescribed limits, be liable to any person who is unable to obtain full compensation for oil pollution damage from the shipowner or his insurer if the shipowner is incapable of meeting the claim or the claim exceeds the limitation fund of the owner established under clause 7. The Bill also provides for the fines imposed for any offence under the Bill and sums collected to be paid into the funds of the Authority. Payment of fines to MPA will enable it to recover part of the clean up costs for oil spills from unknown sources and investigation expenses relating to pollution incidents. Sir, I beg to move. Question proposed.”
“As a party to CLC 92 and Fund 92, Singapore is obligated to give effect to the provisions of these Conventions in its laws. The Bill contains the essential provisions to give effect to CLC 92 and Fund 92. Administrative and procedural matters will be dealt by subsidiary legislation. Besides the higher compensation available to oil pollution victims which I have just mentioned, there are the following differences between the old Act, which implements CLC 69, and the Bill which implements CLC 92 and Fund 92: Under clause 6 of the Bill, owners of ships not exceeding 5,000 tons can limit their liability to a fixed sum of 3 million special drawing rights (SDRs). This is equivalent to about S$6 million. Under clause 3 of the Bill, expenses incurred for preventive measures are recoverable even where no spill of oil occurs, provided that there is a grave and imminent threat of pollution damage. Provisions of the Bill apply to pollution damage both in the territory (including the territorial sea) as well as the exclusive economic zone (EEZ) of Singapore. Provisions of the Bill apply to spills from sea-going vessels constructed or adapted to carry oil in bulk as cargo, whether laden or unladen and apply to spills of bunker oil from such ships. In giving effect to Fund 92, the Bill requires contributions to be paid to the Fund by an importer or receiver of more than 150,000 tons per year of oil. The major oil companies and oil traders in Singapore will contribute to the Fund. The amount to be paid each year will depend on the number and size of oil spills in the States party to the Fund 92, the amount of claim that exceeds the limit of the CLC 92, the cost and expenses of administering the Fund and any deficit from operations in preceding years.”
“Under CLC 92, the limit of compensation has been raised from about S$30 million (in CLC 69) to about S$130 million, or slightly more than four times. Under Fund 92, the limit of compensation has been raised from about S$130 million (in Fund 71) to about S$436 million. The volume of oil imported to and exported from Singapore has been increasing steadily over the years. A large number of very large crude carriers (VLCCs) transit the Singapore Strait. As the maritime traffic in our waters and in the Strait increases, so too does the risk of a serious pollution incident. In fact, if Members may recall, such an incident did occur recently in October 1997 when two oil tankers collided in the Singapore Strait spilling some 28,000 tons of crude oil into our waters. We would like to have a higher limit of compensation in the event of a serious pollution incident like this. The MPA consulted various public and private sector organizations involved such as the Singapore Shipping Association, oil industry, TDB, EDB and MTI. They have all supported Singapore's accession to the Protocols. Singapore acceded to CLC 92 and Fund 92 on 18th September and 31st December 1997 respectively. These will come into force one year later. In other words, in September and December this year respectively. Our accession to CLC 92 means that Singapore-registered oil tankers will have to be covered by insurance against liability for oil pollution damage for a higher limit of compensation. Further, tankers calling at Singapore must also be insured to the same higher limit. Our accession to Fund 92 will enable victims of oil pollution damage to seek additional compensation where compensation from shipowners or their insurers is insufficient to meet the claims.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill seeks to give effect to the International Convention on Civil Liability for Oil Pollution Damage 1992 (CLC 92) and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage in 1992 (Fund 92). Both Conventions were adopted by the International Maritime Organization. The International Convention on Civil Liability for Oil Pollution Damage 1969 (CLC 69) and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 (Fund 71) set the international rules and procedure for dealing with liability and compensation for oil pollution damage. These Conventions provide for the sharing of the costs of compensation between the shipowners and cargo interests. Compensation is initially paid by the owner, whom the CLC 69 makes strictly liable for oil pollution damage. Since CLC 69 also generally provides for limitation of the owner's liability, additional compensation is available, if needed, from the International Oil Pollution Compensation Fund (the 1971 Fund), established under Fund 71. The Fund is financed by contributions from importers and receivers of oil. Singapore has been a party to CLC 69 for many years. The existing 1981 Merchant Shipping (Oil Pollution) Act implements this Convention. But the CLC 69 and Fund 71 have been found to be inadequate to meet current levels of claims. In 1992, the IMO adopted two Protocols to amend CLC 69 and Fund 71. The Protocols primarily raised the level of compensation that victims of oil pollution can claim as a result of an oil pollution from ships.”
“Our existing laws protect against unauthorised intrusion into certain aspects of electronic, telephone and computer communications. For example, computer "hacking" is an offence under section 6 of the Computer Misuse Act. In addition, tampering with the installation or plant of a telecommunication system licensee for the purpose of intercepting messages is an offence under section 77 of the Telecommunication Authority of Singapore Act. The presence of such legislation serves as a deterrent to potential offenders. For the electronic marketplace, the National Computer Board has formed an inter-agency team to study the issue of protection of personal information. The team is expected to make recommendations to the Government by year-end. In addition, the Legal Sub-committee of the National Internet Advisory Council has also drafted a Code of Practice for the Protection of Personal Information and Communications of Internet Users to safeguard the privacy of Internet users. The Code of Practice is meant to be adopted by the industry as a means of self-regulation. LEASES AND PRIVATISATION OF HOUSING AND DEVELOPMENT BOARD FLATS 7. Mr Shriniwas Rai asked the Minister for National Development if he will (a) consider granting leases of 65 years for Housing and Development Board (HDB) flats; and (b) take steps to privatise 5-room and executive HDB flats as in the case of flats of the Housing and Urban Development Company.”
“Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Mah Bow Tan]. Bill considered in Committee; reported without amendment; read a Third time and passed. NATIONAL COMPUTER BOARD (AMENDMENT) BILL Order for Second Reading read.”
“Subsection (1A) deems any policy of insurance: issued on or before the commencement of the Bill by an insurer who was lawfully carrying on motor insurance business in Singapore; and which insures any person specified in the policy against third-party risks which may be incurred by him when using a motor vehicle in any territory specified in the Schedule, to have been a policy of insurance issued for the purposes of the Act and under which, third parties are conferred benefits by the Act. Subsection (1A) reverses the Court of Appeal's ruling in Nippon Fire & Marine Insurance Co Ltd v. Sim Jin Hwee and retrospectively confers the right of all affected persons to sue Singapore insurers under the Act if a motor accident involving a Singapore registered and insured vehicle occurs in West Malaysia. However, the new subsection (1B) provides that this benefit, or the retrospective effect, does not extend to any person whose claim has, prior to the passing of the Bill, been held by a Singapore Court not to give rise to an action against a Singapore insurer. What this does is that it preserves the decision of the Court of Appeal in Nippon's case and other cases that the Courts have decided since that decision. Clause 9 of the Bill inserts a new Schedule which specifies the territory outside Singapore to which the new subsection (1A) and the amended section 3(1) apply. West Malaysia is the territory specified in the Schedule and this means that any person using a Singapore registered vehicle in West Malaysia must be covered by an insurance policy in respect of third party risks as complies with the Act. Conclusion Sir, the Bill restores the law governing motor insurance coverage and the rights of road accident victims to the way it was prior to the ruling of the Court of Appeal.”
“Nothing is served by making an injured party or a deceased's estate go through unnecessary legal rigmarole just to get the insurers to pay what they contractually have to pay under their insurance policies. Mr Speaker, Sir, we have therefore decided that these issues should be put right by amending the Motor Vehicles (Third-Party Risks and Compensation) (Amendment) Act. As Malaysia has similar legislation, we have sought the co-operation of the relevant authorities in Malaysia to similarly amend their legislation. I have written to the Malaysian Minister of Transport, Tan Sri Dr Ling Liong Sik, and he has agreed that our legislation should be harmonised to safeguard the interests of motorists and do not impede the movement of vehicles between Malaysia and Singapore. Our officials will be meeting soon to work out the details. Provisions of the Motor Vehicles (Third-Party Risks and Compensation) (Amendment) Act 1998 Sir, let me now highlight the key provisions of the Motor Vehicles (Third-Party Risks and Compensation) (Amendment) Bill. The Bill introduces new provisions and amends existing provisions to the Motor Vehicles (Third-Party Risks and Compensation) Act. Clause 2 of the Bill amends section 3(1) to extend the extraterritorial effect to motor insurance policies issued by Singapore insurers to any territory specified in the Schedule. Clause 2 also prohibits persons from using a motor vehicle which is registered in Singapore unless the person is covered for third-party risks which may be incurred by him when using the motor vehicle in any territory specified in the Schedule. Clause 3 of the Bill introduces 2 new subsections, and these are (1A) and (1B).”
“189) Mr Speaker, Sir, historically, when the Act was first enacted in 1938, it was intended to cover the use of motor vehicles in Singapore and Malaysia when both countries were treated as a single territory under the British administration. To date, the scope of our Act has not changed even after the constitutional changes which occurred during the period 1959 to 1965. In fact, the Act still retains section 19(1)(f) which indicates that the legislative intent was to provide for compulsory third party liability insurance whenever Singapore registered motor vehicles are used in Malaysia. The practice of Singapore insurers has always been to issue insurance policies which cover the use of Singapore registered vehicles in West Malaysia. The effect of such an insurance policy is to contractually extend the insurance coverage beyond Singapore in order to provide protection to third parties who might be injured or killed by the use of the insured vehicle. In this way, the practice is consistent with the legislative intent to provide the benefits of the Act to victims of road accidents occurring in West Malaysia. Sir, it is clear that the spirit and intent of the Act was to cover the use of Singapore registered vehicles within West Malaysia. Any other interpretation would lead to undesirable consequences and subject innocent victims of road accidents occurring in West Malaysia to unnecessary expense and delay in obtaining compensation for the injuries caused to them. It is therefore necessary for the law to be amended to restore to victims of road traffic accidents caused by the use of Singapore vehicles in West Malaysia, the right to make a direct claim against the insurers.”
“Implications of the Court's Ruling Recovery against insurers Although the Court has ruled that the passenger has no right to sue the insurer under the Act, the Court's ruling does not affect the victim's right to recover indirectly from the insurer if the policy is valid as a contract at the date of judgement. This indirect recovery route means that the insured driver will have to sue the insurer on the contract of motor insurance and any monies recovered by the insured from the insurer will then become available for payment by the insured to the victim. In Nippon's case, the policy that was issued covered the use of the Singapore-registered and insured vehicle in West Malaysia. However, as the insured driver is now a bankrupt, the passenger must rely on the Official Assignee to make a contractual claim against the insurer. Mr Speaker, Sir, the Court of Appeal's ruling not only applies to passengers but also to every victim of a motor accident on a Malaysian road involving a car registered and insured in Singapore. Such victims would, as a consequence of the Court's ruling, have no right to sue the Singapore insurers directly. Mr Speaker, Sir, the Court's ruling is not in the public interest as it means that victims of motor accidents have to resort to indirect means in order to claim against the insurers. This will cause victims and the estates of deceased victims unnecessary expense and delay. In Nippon's case, it would reduce the amount of damages payable to the injured passenger because the insurance monies will have to be shared with other creditors of the bankrupt insured. Extraterritorial scope of the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Aim Sir, the aim of this Bill is to amend the Motor Vehicles (Third-Party Risks and Compensation) Act to ensure that Singapore registered and insured vehicles travelling into West Malaysia are covered for third party liability insurance and that the benefits of third party victims of road accidents caused by the use of Singapore vehicles in West Malaysia are preserved. Background Under the Motor Vehicles (Third-Party Risks and Compensation) Act, victims of accidents have a right to look to the insured's insurers if the insured fails to satisfy a judgement entered against him. The Act also provides for the vesting of the insured's rights against his insurer in the third party if the insured is made a bankrupt. Sir, in the recent Court of Appeal case, Nippon Fire & Marine Insurance Co Ltd v Sim Jin Hwee, the Court of Appeal ruled that a passenger in a Singapore registered and insured motor vehicle involved in an accident in West Malaysia has no right to claim against the insurers directly under the Motor Vehicles (Third-Party Risks and Compensation) Act (Cap 189). The Court made this ruling on the premise that Singapore laws generally are not extra-territorial in scope unless it is expressly provided. Where a motor accident occurs in West Malaysia, the benefits provided for in the Act do not extend to victims of such accidents. The benefits in the Act only apply to motor accidents occurring in Singapore.”
“It is also very capital intensive. For example, Phases I and II of the new Pasir Panjang Terminal will cost about $7000 million. Setting the correct level of tariffs is critical to its viability. It must provide customers with value-for-money. It must also allow PSA to make a reasonable return on its investment so that it can reward its shareholders, its staff and re-invest in the business. Therefore, PSA has always set the prices for its services very competitively. Over the years, PSA has focused on reducing cost and improving the productivity of its operations. The productivity gains are shared with its customers in the form of discounts, rebates and lower tariff rates. PSA will continue to look into ways to further lower costs or increase cost effectiveness of its services, and pass on these savings to its customers. NATIONAL OUTREACH PROGRAMME IN MARINE PARADE AND TANJONG PAGAR CDCs 54. Mdm Claire Chiang See Ngoh asked the Minister for Community Development if he will provide the preliminary findings on the needs of 15,000 low-income homes in Marine Parade and Tanjong Pagar CDCs which 170 volunteers visited as part of a national outreach programme started in December 1997.”
“(a) The financial figures requested are as follows: Return on Total Asset : 11.8% Return on Equity : 14.6% Return on Sales : 39.0% Return on Sales figure excludes non-operating income accumulated when PSA was a statutory board. These figures are for PSA, the statutory board, from January to September 1997 and PSA Corporation, the company, from October to December 1997. If we applied the corporate tax of 26% for the first 9 months when PSA was a statutory board, the figures would be lower at 11.1%, 13.8% and 37%, respectively. These figures would be lower for PSA Corporation in future years because upon corporatisation on 1st October 1997, PSA's assets were revalued to market prices, and as a company, PSA Corporation will be subjected to a higher corporate tax regime. PSA was corporatised less than 1 year ago - in October 1997. The date for PSA's privatisation has not been fixed. Similarly, details such as financial targets or extent of share placement have not been decided yet. (b and c) The bulk of PSA's container business is in transhipment cargo. In this area of business, PSA faces keen competition from other ports in the region. Therefore, the Government does not regulate the charges for transhipment cargo. PSA as a corporatised entity is fully aware that its prices must be competitive and relevant to the needs and requirements of its customers, otherwise they will have no hesitation to use other regional ports. However, for local cargo, the Government does regulate the tariffs through the Maritime and Port Authority. This is to ensure they remain competitive and safeguard the interest of local exporters. PSA's pricing strategy is not influenced by plans for its listing on the Stock Exchange. (d) The port industry is a highly competitive international business.”
“The tender proposals were evaluated based on these criteria by a Tender Evaluation Committee which included members from the public and the private sectors. I am satisfied that all necessary measures were taken to preserve the integrity of the tender evaluation process. On the question of re-tender, TAS will not be calling another tender soon. However, depending on how the market develops and if there is a need, it is possible that future tenders could be called before the year 2000. Nevertheless, I should point out that with one more mobile licence awarded this time, there will be three competing operators come year 2000. PSA CORPORATION LTD 53. Mr Tay Beng Chuan asked the Minister for Communications, in respect of PSA Corporation Ltd, (a) what are its return on assets, return on equity and net profit margin for 1997 given its pre-tax profit of $1,124 million and how these figures compare with the targets set for its flotation; (b) how it prices its services; (c) how the drive to list it on the Stock Exchange of Singapore impacts on its service pricing; and (d) whether the Corporation will consider passing on the huge pre-tax profit to the industry by lowering various port tariffs and charges.”
“TAS called for a tender in October 1997 to award up to 2 more mobile phone operators. At the close of tender on 31st December 1997, 2 consortia submitted bids - the StarHub consortium and P2P consortium. The Tender Evaluation Committee evaluated both bids and recommended that both consortia be awarded the mobile phone licences. Tender results were announced on 23rd April. The next day, 24th April, GTE, one of the consortium members named in the P2P tender document, issued a statement that it was not a member of the P2P consortium and had no equity stake in the venture. This was contrary to what was claimed in the tender document. The incident has created much unnecessary inconvenience to TAS and the other parties involved. TAS is now investigating whether there was any misrepresentation in P2P's tender submission. I expect the investigation to be completed in the next few weeks. Depending on the outcome of the investigation, appropriate action will be taken against the parties concerned. There are two parts to the tender. One is the tender submission process. Like other government tenders, TAS' current tender submission process does not categorically stipulate that each and every partner in a consortium must sign the tender document. This has not given rise to any problem with TAS' other tenders until now. However in view of this incident, I have asked TAS to review the tender submission requirements to see if any improvements can be made to ensure that such incidents do not happen again in future. The other part of the tender process is the tender evaluation. To make the process as transparent as possible,TAS made public the key evaluation criteria of the tender as well as their weightages.”
“The construction of separate walkways and bicycle lanes can be considered only where appropriate. DRUG ADDICTS IN PRISONS AND HALF-WAY HOUSES 44. Mdm Claire Chiang See Ngoh asked the Minister for Home Affairs what is the total number of drug addicts in prisons and half-way houses and what are their (i) socio-economic characteristics; (ii) educational attainment; (iii) after-care rehabilitation needs; (iv) level of recidivism; and (v) employability potential.”
“Under LTA's programme to upgrade bus shelters and provide more commuter facilities, more than 4,000 bus shelters will be upgraded in phases. The first phase of the programme is currently in progress and involves the upgrading of about 800 bus shelters and constructing more than 100 linkways in older HDB estates. The bus shelters selected in the first phase are generally more than 9 years old and mainly in the older estates. Woodlands is being considered for the second phase. Construction is scheduled to commence in late 1999. SEPARATE PEDESTRIAN WALKWAYS AND BICYCLE LANES IN HOUSING ESTATES 43. Mr Charles Chong asked the Minister for National Development if his Ministry will consider the construction of separate pedestrian walkways and bicycle lanes in our housing estates. Mr Lim Hng Kiang: In new towns like Sengkang and Punggol, a comprehensive system of green connectors is provided to link the residential precincts to the commercial and recreational facilities. This is to give residents a generally vehicular-free access to facilities in the towns. Also, in the new estates, with the introduction of multi-storey carparks which are served directly by service roads normally situated along the perimeter of the housing precincts, the vehicular traffic along service roads within the housing precincts is reduced. As cyclists can make use of these service roads safely, HDB does not specifically provide bicycle tracks within housing estates. For the older housing estates, the layout of the service roads is spread throughout the entire precinct as there is a need to serve the surface carparks found in between blocks. Segregation of pedestrian traffic is not distinct and may not be ideal for cycling.”
“As our land is scarce and road space limited, we have to make sure that our road space is optimally utilised. We have thus far only set aside dedicated lanes to scheduled public buses in order to give them priority because buses are a more efficient form of people mover than cars. Even then, bus lanes are only operational during the peak hours and not during other times so that the road space is optimally utilised. We cannot provide for dedicated cycling lanes along public roads because they take up precious road space. Less than 1% of commuters travel by bicycle to work and back. More people cycle as a recreational activity. This is why bicycle tracks are provided in parks and alongside jogging paths. We have also provided bicycle stands at MRT stations to cater to those who want to cycle between their homes and transport nodes like MRT stations. If and when cycling becomes more popular in future, we can consider constructing a dedicated network of cycling tracks within housing estates that would provide safe and efficient intra-town travel for residents. COVERED LINKWAYS BETWEEN BUS STOPS AND NEAREST BLOCKS IN WOODLANDS 42. Assoc. Prof. Chin Tet Yung asked the Minister for Communications when can residents in Woodlands expect to see covered linkways between the bus stops and the nearest blocks.”
“The Second Crossing is a joint project between Singapore and Malaysia. Both countries have invested equally in the project. It is only fair for both sides to charge similar tolls. Singapore has decided that we will initially peg our toll rates to Malaysia's. We cannot unilaterally lower our toll charges or impose no tolls as we will simply be forgoing our share of the toll revenue. However, if Malaysia reviews its toll charges, we will consider doing the same. BICYCLE LANES ALONG ROADWAYS 41. Mr Charles Chong asked the Minister for Communications if his Ministry will consider the construction of bicycle lanes along suitable road-ways.”
“Air safety is a top priority for the Civil Aviation Authority of Singapore (CAAS). At Changi Airport, all necessary measures are in place to ensure that aircraft land and take-off safely. Air navigation facilities and air traffic procedures at Changi Airport comply strictly with international standards set by the International Civil Aviation Organisation (ICAO). Navigational facilities such as Instrument Landing Systems are checked regularly by the Federal Aviation Administration (FAA) of the United States to ensure their reliability and accuracy. Since Changi Airport began operations in 1981, it has been considered deficiency free in terms of air safety every year by the International Federation of Air Line Pilots' Associations (IFALPA). IFALPA's ratings are based on assessments of the air traffic services, navigational facilities and conditions of the runway, taxiway and apron at the airport. Changi Airport's deficiency free record is an important international recognition of its very high safety standard. TOLL CHARGES FOR SECOND CROSSING 40. Mr Cyrille Tan asked the Minister for Communications if the usage for the Second Crossing were to remain low, will his Ministry consider further lowering the toll charges.”
“Dr Teo Ho Pin asked the Minister for National Development (a) what are the measures taken by his Ministry to ensure that our beaches are safe for swimming, sailcraft and powered boat activities; (b) whether the beaches are demarcated for such activities by signages or markers; and (c) what are the programmes initiated to increase the awareness of the public concerning the danger spots along our beaches.”
“PSA was corporatised in October 1997. Under the Port of Singapore Authority (Dissolution) Act 1997, the port charges for domestic cargo handled by PSA Corporation are regulated by the Maritime and Port Authority (MPA). PSA has to justify any increase in its domestic tariffs to MPA before implementing any tariff hikes. To date, PSA Corporation has not sought to increase its domestic cargo tariffs. In fact, local stevedore rates, which is the major component in domestic cargo tariffs, have decreased by 25% over the last 20 years. To keep port costs down, MPA reduced port dues for container ships by 20% since May 1996. PSA and MPA also recently announced the waiver of overside bunker wharfage charges which will result in a cost saving of $17 million a year for port users. In the area of warehousing, PSA Corporation is one of many warehouse lessors in Singapore and port users have a large pool of warehouse operators to choose from. PSA has also been responsive to prevailing market conditions. From March 1998, PSA has lowered rents at Keppel Distripark by 10%. It has also been granting its tenants further rebates on their leases. In the transhipment business, PSA Corporation faces keen competition from other ports in the region and will need to offer good value-for-money and quality services at attractive rates in order to stay competitive. I would like to assure the Member that the MPA and PSA Corporation are both keenly aware of the need to keep its port tariffs competitive in order to help Singapore remain a good place to do business. SAFE BEACHES 17.”
“We will expand it as our urban development expands, as more new towns are built, as the downtown area is developed, and as more new centres of work and population develop. That is definitely on the cards. But every line we build, every station we build has to be economically justified. It cannot be a luxury. It has to be justified. And that is why in good times and in bad, we are able to justify and proceed with the building of the MRT or LRT system. What the LTA plans to do is to implement an average of one rapid transit system a year. And if we can sustain this rate, in 10 years' time, we will be doubling our network from 83 km to something like 150 km of rail. That is a very, very ambitious plan, I must add. Because we will be doing what many countries have taken something like 30 to 50 years. In 10 to 15 years, we will be building what other countries took 30 to 50 years to build. That is the kind of pace that we hope to sustain. As Mr Chuang pointed out, yes, the current economic crisis does present us with opportunities, more competitive prices for one. But at the same time, we have to factor in the weakening of the Singapore dollar because some of the contracts and some of the equipment actually come in US dollars and other European currencies. So we will have to do the weighing. But LTA will monitor the situation very carefully, see what advantages we can reap from this situation and seize the opportunity where we can. And if we find it advantageous and the sums are in our favour, yes we will speed up the implementation. Dr Toh See Kiat: Sir, I will be very brief to allow the Minister to reply. My question is: when will the privatisation of PSA take place?”
“But now with the polytechnic fully completed and the student population up to something like, I believe, 15,000 or thereabouts, it has become viable to build and operate that station at the Singapore Polytechnic. That is the reason why after a feasibility study, we have decided to go ahead to build the Singapore Polytechnic station. We will do similar studies for other existing lines. We will do it together with other statutory boards, JTC, URA and HDB. And if the ridership justifies, yes, we will build additional stations. But it has to be justified on ridership grounds. Finally, Mr Chuang Shaw Peng suggested that the LTA speed up the expansion of the MRT-LRT system, basically to capitalise on the lower construction cost arising from the current economic situation. I have said many times in this House that the Government is committed to building a world-class land transport system based on a public transport which is very comfortable, very efficient, very cost effective and which can offer a good alternative to cars. And that public transport system is basically the rapid transit system, rail-based system, as opposed to public bus system. Today, we already have a very extensive network of rail-based system. We have about 83 km of track. We carry about 1 million passengers a day. When we first started the system, we were talking about 250,000. Today, we are talking about 1 million passengers per day. It is a very well used system, viable, profitable, well-run, efficient. So it has attracted 1 million passengers, many of whom, as Mr Rai pointed out just now, are people who are car owners who use the MRT for some of their trips, and that is as it should be. So we will expand this network further.”
“Whether you have a zebra crossing or a traffic light crossing or overhead bridge really depends on where, on how much traffic, site constraints, and so on and so forth. So where it is possible and feasible, they will consider replacing it. But it is not advisable to have a blanket guideline or ruling to say that we do away with zebra crossings altogether. They do serve their purpose. There is a need for education to make sure that pedestrians know how to use the zebra crossings safely and motorists also know how to approach the zebra crossings safely. Mr Yeo Guat Kwang asked about the garbage trucks. He asked whether we could give garbage trucks some concessions. I think I have made some comments on that earlier. Generally speaking, we apply the ERP charges to all vehicles and we expect the vehicle owners to either absorb, adapt or find some other ways. Basically, the message to all vehicle owners, fleet owners, bus operators, taxi operators is that they have got to live with ERP. They have to get used to it. They have got to adapt to it. There is nothing to be afraid of. Basically, there are many organisations that have learned how to adapt and taxi companies for one and I believe others, including the garbage collectors, will also learn how to adapt. He also asked about additional MRT stations. Yes, we are looking at traffic volumes along all the existing lines and looking at whether we can justify the building of additional MRT stations like what we have done for the Singapore Polytechnic station. The space was allocated to the Singapore Polytechnic station on the North-South line but at that time, the study showed that the volume did not justify.”
“But over time, I would expect that this limit will be reduced and eventually it will disappear completely. But PTC is not being rigid. It is actually being very sensitive to the different requirements of different sectors of the bus commuting public. 5.00 pm Whether there should be a minimum service standard for buses, yes, there is actually a minimum service standard for buses and this minimum service standard is reflected in the minimum waiting times, minimum headways, maximum distance between bus stops, minimum number of services in an estate, and so on and so forth. Those minimum service standards are already in place and are applicable to all our scheduled bus operators. Whether the PTC is well-organised to take into account different groups of people, I would say that its members come from all walks of life, including the labour movement, academia, professionals and grassroots organisations. It includes people who drive to work and people who take public transport to work. I can assure Mr Rai that when the Public Transport Council meets, the Chairman has actually quite a tough time trying to reconcile all the different interest groups represented by those members in his Council. And I must say that he is doing a very good job considering the difficulties involved. But the Public Transport Council can always do with more fresh ideas. So I would ask Mr Rai, if he agrees, that perhaps I should appoint him to the Public Transport Council. Unfortunately, he is not here to give me an answer straightaway. But I will ask him in the Members' Room later. Dr Teo Ho Pin asked whether we can consider replacing zebra crossings with other safer forms of crossings. Yes, the LTA tells me that there are many different types of crossings and they have different users.”
“Nevertheless, if any grassroots organisation or town councils wish to run these services within their estates, and if they think that they can make it viable, they can submit their proposals to PTC for consideration. But I would like to reiterate this word of caution - that it is not a money-making proposition as such, because it is actually part of the bigger public transport network that the scheduled bus operators operate, and there is a fair element of cross-subsidy involved. Mr Rai made some useful comments about the Public Transport Council. Let me address them. On the question of the Public Transport Council being rigid, I think, first of all, he may not be aware that the PTC's limit on air-conditioned services is actually no longer there. In fact, the lid has been lifted. It used to be 40%. Now, I think it has been brought down to 20%, and eventually probably it will be lifted altogether. But that is in a way reflective of the situation that the PTC finds itself in. Because, on the one hand, there is this school of thought that says, "Look, Singapore is a modern society, it is very hot, let's air-condition all the buses. People are prepared to pay for it." And on the other hand, there is another not insignificant group which says, "Look, we cannot afford to pay the 10 or 20 cents more for air-conditioned buses. We don't mind waiting for a non-airconditioned bus because this means a lot to me, and I cannot afford to pay." So there is still a small group of people, not insignificant, who would like to keep some buses in the fleet non-airconditioned and charging a lower fare. The PTC has to recognise this and take into account this feedback and, therefore, it has had to put this limit of 20% on airconditioned buses.”
“Sir, Mr Chay proposed that we allow private companies to run their own bus services. I would just like to enlighten him that we have actually been doing that, ie, allowing private bus operators to operate scheduled shuttle services. Currently, there are about 28 such services run by Scheme B and they supplement the regular services of SBS and TIBS. But in addition to that, there are also 19 private shuttle services at the moment. Another 10 will be added once developments are ready. And they operate from private condominiums, commercial centres linking to MRT stations and bus interchanges. They are provided by the management committees of the private estates for the use of their residents or for the use of their customers. On top of that, there are private factories which supply bus services for their workers. All these supplementary services play a useful role in connecting services from the specific destination to the main transport system. PTC would welcome any organisation that wishes to apply to operate these services, if they find it feasible and cost effective to do so. On the specific point about whether they should run feeder services in HDB estates, if that is what Mr Chay has in mind, I would add a word of caution. At the current fares, many of the feeder services in the housing estates are not profitable and, in fact, they are being cross-subsidised by the trunk services. So while PTC may not have anything in principle against having such services run in the HDB estates, I think there would be very limited scope or incentive for other operators to either run fully, or on a supplemental basis, these services.”
“Design studies were made, evaluated against various criteria and the final choice was made. Basically, we needed more three-tier interchanges because we have to relieve the existing traffic congestion at these junctions, and because it is part and parcel of our plan to optimise the use of our roads. Junctions are where bottlenecks occur. So when we have major traffic arteries, we have to make sure that those bottlenecks are removed. Otherwise, we are under-utilising our roads. Sir, let me just conclude by taking this opportunity to remind Members that our land transport policy is not just ERP alone. Over the last so many minutes, I have been answering queries about ERP, but it is not just ERP. It is about more choices for the public in terms of good public transport. It is about expanding the road network. It is about building three-tier interchanges. It is about managing our roads to relieve congestion. It is about issuing more COEs so that more people can aspire to own cars. Since we debated the White Paper on Land Transport in this House in 1996, we have achieved a lot, but a lot more needs to be done. I am confident that as we press on with the implementation of the various policies and schemes that have been mapped out in this White Paper, we will achieve our vision of a world-class land transport system for Singapore.”
“We will continue to convince people that public transport is a viable alternative. But, at the same time, we will continue to try and meet this aspiration for people to own a car. That is the reason why we have ERP, because with ERP we can allow more people to own a car. Mr Jeyaretnam said just now that he cannot understand why we want to issue more COEs. I could not understand why he could not understand that. If he has been on the ground and going around from house to house and talking to people, I think he will understand the strong desire of people to want to own a car. The other example of how we can meet this aspiration is to try and introduce what I call more personalised transport services. Under this category, I refer to taxis, rental cars and, recently, to the car cooperative scheme. I think there is just one last point that I have not addressed yet, and this is on Dr Toh See Kiat's question on the cost effectiveness of underground roads and flyovers. Basically, we have to build underground roads and flyovers because of limited land. There are many junctions in Singapore today which are very heavily used. It is no longer sufficient to just have a two-tier flyover. We need to have three-tier flyovers, because of the heavy flow of traffic in all directions. He asked about criteria. We have to take into account traffic volumes and traffic flows. We have to take into account the site constraints. We have to take into account the topography. We have to take into account the value of the land in the area, whether we go over or under, and so on and so forth. These are some of the considerations that have to be taken into account. The Holland Road three-tier interchange, for example, was selected after taking these factors into consideration.”
“We are saying to those people who wish to continue to drive a car, here is a new tax package for you, slight reduction in upfront taxes, more weightage on usage, you decide what your lifestyle is like, which one suits you best. If you want the door-to-door convenience of a car, you want the reassurance of a car whenever you need it, you will buy a car. If you want to trade off some of that convenience for savings, you can either choose public transport or you can choose a combination of public transport and private transport. You can choose to rent a car, you can take a cab or you can join a car cooperative. So the choice is really up to you. Mr Rai also mentioned that we should convince Singaporeans, especially graduates, that it is not possible to allow every graduate to own a car. I would like to assure Mr Rai that this is what we have been trying to do all these years. It is not an easy dilemma that we have to resolve. It is a tough challenge because, on the one hand, with progress and development, rising expectations invariably mean a demand for cars; on the other hand, a growing demand for travel overall. So we have to resolve this dilemma. The Government has always stressed that cars are not like HDB flats. They are a luxury, albeit a legitimate luxury, as a recent Straits Times editorial put it, but a luxury nevertheless. So, while the Government can provide every household with a HDB flat, it cannot guarantee that everybody will own a car. This is the reason why we have put in so much effort into building up public transport, not just a public transport system that is so-so or can do, but we hope that we will improve the public transport such that it becomes a viable alternative to a car for most people. We will continue to try and resolve this dilemma.”
“It will need to set guidelines on taxi fare revisions which taxi operators must observe and it will have to ensure that commuters are given adequate information to make informed choices. 4.30 pm Dr Toh also asked the industry to set minimum standards. Yes, the LTA has introduced this performance evaluation scheme based on several criteria, and it will set the minimum performance standards for all taxi operators. We will watch and see what the situation is like, how it develops after deregulation. We will observe how the taxi companies behave, whether in fact, they are going to form a cartel to exploit the customer. If necessary, we will further deregulate the industry, as Dr Toh has suggested, to allow new entrants to come in to increase competition, and to let the market decide on the supply of taxis. Mr Shriniwas Rai posed the question whether we can make taxis and car rental companies more attractive as an alternative to private cars. This is, in a way, what we have done with the new tax structure. We have re-looked at SZ cars and taxis and made all their operating costs roughly more or less the same. For example, for new rental cars, we have increased the statutory life span from seven years to 10 years. Taxes for taxis, we have treated them more like cars. Fares will be deregulated. So the stage is really set for all these different modes of transport to compete for customers in the way that they know best, to offer better service, more comfortable rides, or cheaper fares on weekdays, Sundays, as Mr Goh mentioned just now. It is really up to the taxi companies now and they are free to do so after deregulation. With the tax changes, we are now, in a way, offering more choices.”
“So there is no reason for taxi fares to increase suddenly when they are deregulated on 1st September. I expect that taxi operators, as Mr Goh Chee Wee has stated in this House just now, will set their fares sensibly. They will have to see what the demand is like. They will have to match supply with demand. If they price their services too high, taxi commuters have other choices. They have got bus and the MRT. They can opt not to take a taxi. If they set their prices too low, then of course, there will be overwhelming demand and they will have to decide what is the correct level. It is a difficult task for the PTC to have to sit in judgement and to decide and arbitrate on taxi fare increases every time the taxi operators come to the PTC with their fare increase. They are not the ones who run the taxi companies. They are not the ones who drive the taxis. They have to look after the interest of the commuters. But in doing so, in looking after the interest of the commuters, they also have to balance the need to provide the taxi companies with a reasonable return and the taxi operators and drivers with a reasonable livelihood. This is a very difficult task. And every time they sit to arbitrate and decide on this, there is a lot of argument and at the end of the day, nobody is happy with the result. So it is appropriate now that we have set the tax platforms and the tax structure correctly, that we return this responsibility to the taxi operators and the taxi companies. Of course, I would expect taxi operators to be responsible, to recognise their public transport role and the service to their customers in return for the freedom to set their own fares. The PTC will continue to monitor the taxi industry after deregulation.”
“But they are a form of public transport at the very high end and therefore they should, on the one hand, pay taxes similar to a car but, on the other hand, be given some concessions in recognition of their public transport role. This we have done in the new tax structure. So we have to impose the diesel tax to equalise this. We did this many years ago, calculated based on the average mileage travelled by taxis. With ERP, I would expect that the average mileage incurred by taxis will go down. Empty cruising will be reduced. Taxi drivers will be discouraged from driving unnecessarily looking for passengers as they do today. They will probably have to depend more on radio phones, radio calls or they will have to find some means of pooling their resources or whatever. The fact is that they will have to change their mode of operation in the same way that other industries will have to. If they do that effectively and if the mileage incurred goes down, then the basis of charging diesel tax, which is based on mileage, also suggests that diesel tax will trend downwards. But this is really up to the taxi operators, how they drive, how they react to the ERP system. The question of taxi cartels came up from both Dr Toh See Kiat and Mr Iswaran who were concerned that taxi companies may form themselves into a cartel. Sir, under the new tax structure, all taxis receive reduction in diesel tax. They will all receive road tax rebates. We design the tax structure so that taxes for taxis, as I said earlier, will be comparable to taxes for private cars. The new tax structure also has been configured in such a way that the total cost of registering and running a taxi after the new taxes are implemented will not be more than what it is today.”
“First of all, under the new tax structure, all existing taxis will enjoy the reduction in annual diesel tax. The annual diesel tax will be reduced from $6,600 to $5,100. LTA will meet the taxi companies and the Taxi Drivers' Association to work out the details on how taxi drivers can benefit equitably from these savings. Recently, I met the taxi drivers in a dialogue session. They suggested that the savings be used to top up their Medisave accounts. I will ask the taxi drivers, taxi operators, companies as well as the Association to put their proposals to the LTA and we will discuss together on how this can be done. I think it is a good idea. Mr Seng also asked about the future policy of diesel tax. Will it be removed? First of all, to answer that question, I think we must go back to the history of the diesel tax. What is the diesel tax? Very simply, it is a tax to equalise the difference between tax on diesel and tax on petrol. The tax on diesel is very much lower than the tax on petrol at the pump. There are many reasons for this. But that is a fact. So we try to make the cost platform for taxis and private cars more equal. This is where Mr Jeyaretnam just now asked, why do we tax taxi drivers so high, why do we not just remove the diesel tax, why do we not tax it on the same basis as public transport. Yes, we are taxing taxis as public transport but not mass public transport like buses. Taxis are a personalised form of transport. It is not a substitute for cars and therefore it cannot be taxed in the way that Mr Jeyaretnam suggested, like public transport, so that we allow everybody to take taxis. Why are we making it so expensive for people to take taxis? Taxis are not subsitutes for cars.”