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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“He is right in saying that it is likely that with the progress of technology, with the advancements in this particular field, that it is likely that we will use such technologies in the future. I thank him for his suggestion and I will look into this. For the moment, I would like to inform him that I believe the proposed provisions are adequate for the purpose today. And it is not intended to preclude, of course, the use of such new technologies in the future, as and when they become available. He also wanted to know what is the official facsimile. Basically, the official facsimile refers to computer-generated or rubber stamp signatures which I think some, if not all of us, are familiar with when we receive either property tax notices or even traffic violations today. It is essentially the same thing. It is simply a question of making the dispatch of notices, offers of composition and so on more efficient. The term, as I said, refers to the computer-generated signature. Similar provisions exist in other legislation dealing with other Government business like property tax and traffic summonses. I believe I have covered Dr Toh's questions.”
“In the same way that other provisions under the Road Traffic Act require the owner to furnish particulars of either himself or the driver, ie, whoever was driving the vehicle at that time. So, in the same way, it is up to the owner to furnish the relevant particulars of the driver. If he is not the driver, then it is up to him to furnish the relevant particulars. Thereupon, of course, the LTA will take the necessary steps to either prosecute the driver or the owner, whoever is appropriate. Mr Chay also asked whether we can announce the scheme earlier in order to give the public time to consider and make decisions. I presume those decisions refer to whether or not a person wishes to buy a car. This is precisely the reason why I will be making the announcement after the Budget statement is made, because it will allow motorists, in fact, before the next COE bidding cycle starts, to know what is the new tax structure like, what is it going to be, how it will affect him, what is the quantum of the rebates that will be given, whether he decides to continue to bid for a car or whether he wishes to look for other alternative travel modes. So sufficient time will be given whereby all motorists or would-be motorists will be able to make such an informed decision. This will also allow Members in the House, during the Committee of Supply debate, to further seek clarification on the matter or to debate the matter in the House. I turn now to Dr Toh See Kiat who made two points. The first point was his suggestion, I believe, to add the word "telematic". I think the intent behind this suggestion is correct.”
“I take his point and I assure Mr Chay that I will ask the LTA to be flexible in its enforcement of the ERP system in the first one or two weeks. Specifically, he asked about new section 34E. Section 34E actually talks about the liability of owners vis-�-vis drivers or users of the vehicles. What this section seeks to do is to allow the Registrar of Vehicles to detain a vehicle if the owner fails to comply with the notice to produce the vehicle for inspection and testing of the IU. This is really to cater for situations where the LTA suspects that the IU has been tampered with. We are talking about 600,000 In-Vehicle Units by the time we finish the exercise. The possibility of tampering is a very real one and I think it is important, for the integrity of the system, that provisions are put in place in order to allow any tampering of the IUs to be nipped in the bud before it becomes more pervasive. This provision is really to allow the Registrar of Vehicles to actually call in a vehicle, test it and check that no tampering has taken place. I hope that clarifies the point for Mr Chay.”
“Mr Chay also asked about the foreign cars, what is going to happen to foreign motorists. By this, I mean Malaysian motorists in particular. Malaysian motorists will be subject to the same rules and charges as our local motorists. So long as they use the ERP price roads, they will be subject to the same charges. And this is in fact no different from the current manual system where all the ALS/RPS charges are also applicable to Malaysian motorists. We recognise the fact that Malaysian motorists do not come to Singapore so frequently and they may not be aware or subject to the same campaign of publicity blitz. We have therefore made special provisions to distribute brochures and leaflets at the Causeway as well as at the Tuas Checkpoint. So every Malaysian motorist coming in over the last few months has been given this brochure in order to make the Malaysian motorists more aware of what is the ERP system, where they can fit the In-vehicle Unit if they wish to, if they are frequent visitors to Singapore, or if they do not wish to, where they can get a temporary IU. He has also suggested that we may want to consider giving some publicity to those non-Malaysian motorists, for example, those who arrive by air. I think this is a good suggestion. I will take it up. For example, they may be coming here and they rent a car. We can certainly implement that suggestion. As for the penalties for ERP violations, I would like to inform him that the penalties will be consistent with those for similar violations of the ALS and RPS system. Yes, this will be a brand new system. It will be something that will be very unfamiliar to many motorists initially, and I would expect that there will be a little bit of confusion in the beginning.”
“Mr Speaker, Sir, let me first of all thank the two speakers who supported the provisions of the Bill. They have raised several queries which I would like to deal with first. Mr Chay Wai Chuen asked several questions concerning the publicity for the ERP system. I do share with Mr Chay his concerns about having adequate publicity and this is the reason why I have asked the LTA to launch a publicity campaign before the implementation of the ERP. And this public education programme was in fact started last year when the fitting of the In-vehicle Units (IUs) was started, I think, sometime in September. During this publicity programme, motorists will be educated not just on the operation of the system but also the technical functions of the In-vehicle Unit. Members may recall there were information booklets that were sent to all the motorists. There was also a publicity blitz on television and newspapers to explain the rationale for the ERP scheme and to increase the awareness of the ERP scheme. Obviously, that message has not got through to Mr Low Thia Khiang and I will deal with his concerns later on. The publicity for motorists will not stop here of course because we are going to implement the scheme in April which is only 1 1/2 months away. LTA would be stepping up the publicity programme. In the next week, they will be announcing the testing of the IUs whereby motorists will be invited to drive through the gantries in order to allow motorists a chance to actually make use of the IUs, to test them and be familiar with the system. The LTA will be giving some details on this later on. Closer to the time of the implementation, which is sometime in March, the publicity will be stepped up.”
“Clause 3 also provides for the Registrar of Vehicles to require a vehicle owner to produce his vehicle for inspection of the In-vehicle Unit (IU). Clause 4 of the Bill empowers an employee of the LTA to require a vehicle owner to furnish the identity and address of the driver of his vehicle who is suspected to be guilty of an offence under the Road Traffic Act or its rules. Clause 5 of the Bill makes a vehicle owner liable for any offence under the new Part IA of the Road Traffic Act or its rules, committed using his vehicle unless at the time of the offence his vehicle was stolen or illegally taken or used. As the Road Traffic Act is overseen by both the Minister for Communications and the Minster for Home Affairs, clauses 6 to 9 of the Bill allow the Minister for Communications to exercise the same powers under the provisions mentioned in those clauses which are within his purview. Clause 10 of the Bill relates to the authentication of any notices, orders or other documents issued under the Road Traffic Act or its rules. It allows for documents such as summonses for ERP offences to be generated automatically with official facsimile or electronic signatures. Conclusion Sir, the introduction of ERP is a significant milestone in the history of land transport in Singapore. It marks a fundamental shift in the way we manage the use of our roads - from an ownership-biased regime to a more balanced one based on usage as well as ownership. This shift is necessary to ensure that our roads remain free from congestion to support economic growth and a better quality of life for our people. I am confident that the ERP system will help us manage our traffic problems well into the next century and bring us a major step closer to our vision of a world-class land transport system.”
“We will also make full use of the flexibility of the ERP system to implement `shoulder pricing', in other words, to implement different pricing within the peak period and the period just outside that, and this is to spread out the traffic evenly during the RPS operational hours. Mr Speaker Sir, as I mentioned earlier, our experience has shown that road pricing works. It helps to bring about free flow of traffic on our roads. The ERP will be more than an improvement over the manual system of road pricing. With ERP, we are able to fine-tune the charges to respond more specifically to the times and areas of congestion. At the same time, we will revise our vehicle tax structure and introduce a package of road tax rebates in order to shift more of the fixed cost of owning a vehicle to the discretionary cost of using it. I will be announcing details of the new vehicle tax structure and the road tax rebate package together with the ERP implementation plan next month before the Budget debate. Before we are able to make the requisite changes, we will have to amend the Road Traffic Act. The Road Traffic (Amendment) Bill Sir, let me now address the key provisions of the Road Traffic (Amendment) Bill. Clause 3 of the Bill empowers the Minister for Communications to prescribe road-user charges to be paid by the vehicle driver in connection with the use of any specified road. The Minister may also make rules to specify the roads for which road-user charges will be levied, the days and hours during which a road-user charge is levied, the different charge amounts for the different roads, hours of the day, days of the week and vehicle classes or descriptions, and the manner in which the road-user charges are levied and collected.”
“LTA is currently in the midst of fitting the In-vehicle Units (or IUs) onto all vehicles. The exercise is scheduled to be completed by July this year. The RPS and ALS gantries are also being progressively replaced by the ERP gantries. ERP Implementation Plan Mr Speaker, Sir, we will kick off ERP by implementing it first on the East Coast Parkway before we extend it to the other ALS and RPS points. The reason for this phased implementation is prudent. We want to ensure minimum hitches for full scale operation of this complex system. Motorists will also be able to familiarise themselves with the system under this approach. I announced recently that the two RPS points on the East Coast Parkway, one at Fort Road and the other one at Ophir Road, will be replaced by the ERP system with effect from 1st April this year. Over the next few weeks before the ERP begins at the East Coast Parkway at these two points, LTA will be testing the system using the five sets of gantries already installed at the East Coast Parkway, the Pan-Island Expressway and the Central Expressway. This is to ensure that the various equipment and the IUs installed on vehicles are functioning properly. Motorists are encouraged to insert Cashcards into their IUs when they drive through the gantries. No deduction will be made. LTA will announce details of the tests shortly. The ERP rates - a matter of interest, I am sure, to Members - are now being finalised. LTA is monitoring the traffic flow on our roads, and will set the charges based on the actual traffic pattern at the time of implementation.”
“It will encourage motorists to choose the most optimal time, route and mode of transport for their journeys. The result will be a reduction in the number of trips made by private vehicles, more efficient use of our roads, smoother flowing traffic and less pollution. As the roads become less congested, we can review our vehicle quotas and, if feasible, release more COEs. Together, ERP and the Vehicle Quota System will provide a long-term sustainable and effective framework for managing the traffic on our roads. It has taken us many years to realise the ERP System, from conceptualisation to testing and now to final implementation. We first started discussion on the concept in 1989. International tenders were called for contractors to design and supply the system. Tenderers were shortlisted in 1993. Site tests were carried out on three prototype systems in 1994 and 1995, before we finally decided to go ahead with the system. We virtually had to start from scratch. There was no system similar to what we wanted elsewhere. We could not refer to any other system at the time. For example, we had some very special requirements: the ability to process vehicles across many lanes, and to process them as they are travelling at high speeds. That was one requirement. We also called for reliability standards which were higher than currently available in the industry and, of course, there was the need to customise the system to suit our local traffic and weather conditions. Our ERP system has undergone extensive testing, both in the laboratory as well as in the field, to ensure that it meets the highest technical standards. But as Members would appreciate, as technology improves, there will be the need to upgrade and we will do so, and we will improve the ERP system over time.”
“Some have also car-pooled, others have used public transport. Those who choose to pay have been rewarded with a smoother and faster drive. Reasons for Switching to Electronic Road Pricing System Mr Speaker, Sir, the current ALS and RPS schemes are manual systems and they have several inherent shortcomings. For example, they do not allow us to vary the road pricing charges according to the level of traffic congestion. Traffic surveys have shown that traffic flow during the peak hours vary, with a distinct peak-within-peak period. We should in theory levy a higher rate during this peak-within-peak period. But we cannot do so under the manual system for practical reasons. The number of licences for one would have to be increased from the current 14 types. Both the motorists and our enforcement officers would be thoroughly confused, and enforcement would be much more difficult. Another shortcoming of the present system is the need to operate and maintain a wide distribution network including roadside booths and petrol stations to sell the ALS/RPS licences. From the motorists' point of view, the need to look for such outlets is always a major hassle. The ERP system will overcome the shortcomings of the manual system. It will allow us to charge for road usage in a more flexible, efficient and equitable manner. We will be able to implement a pricing structure that is more sensitive to the actual level of traffic congestion experienced on the roads. The system will be more convenient to motorists as it does away with the hassle of queuing at sales outlets to buy the daily or monthly licences. An automated system will also minimise the potential for human error in the area of enforcement. More importantly, the ERP system will make motorists more aware of the cost of road use.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the objective of this Bill is to enable the Government to implement the Electronic Road Pricing (ERP) system. Managing demand for road use is an important and key strategy in our integrated approach towards meeting our future transportation needs. We do this in two ways: First of all, ownership restraint measures which include the Vehicle Quota System (VQS) and fiscal measures like ARF, customs duty and road tax. Second, usage management measures like the Area Licensing Scheme (ALS) and Road Pricing Scheme (RPS). The ownership restraint measures, principally the VQS, has enabled us to cap the growth of the vehicle population to 3% per annum. Our vehicle population today stands at about 680,000, about double the population ten years ago. We could not have sustained this rate of growth if we had not during this same period implemented the various road pricing schemes like the ALS and RPS. We have accumulated 23 years of experience in road pricing. We implemented the ALS for the Central Business District (CBD) since 1975. In the last two years, we extended the concept to the expressways with RPS. The decades of experience have proven beyond doubt what most transport economists and town planners have long advocated, that road pricing is an effective policy for dealing with traffic congestion. Traffic conditions improved significantly after road pricing. Motorists were willing to make changes to their travel patterns, and viable travel alternatives in the form of bus and rail were available for commuters. By making the true cost of driving transparent, motorists have been encouraged to choose a different route, destination, time of travel, or even to decide not to make that trip at all.”
“Mr Leong Horn Kee asked the Minister for National Development that in view of the intention of his Ministry to demolish the Lakeview Market at Upper Thomson Road, whether he would consider the following measures to alleviate the difficulties being faced by the affected hawkers, stallholders and shopkeepers: (i) to consider higher compensation sums for them; (ii) to consider larger compensation sums for hawkers, stallholders and shopkeepers who hold more than one unit space for their tenancies; (iii) for those affected hawkers, stallholders and shopkeepers who sign to accept the compensation sums as first generation holders of the tenancies, to allow their estates/dependants to receive the compensations, even if they were to pass away before such compensations are being paid after their demise; and (iv) to extend the eligibility period for a second year, in the event that the shopkeepers are still unable to find suitable alternative shops based on the preferential discount scheme of 10% within the initial one year period.”
“Mr Mah Bow Tan: When the Evoikos oil spill occurred in October 1997, some industry estimates for oil spill compensation claims ran into the hundreds of millions of dollars. Fortunately, swift action by the Maritime and Port Authority (MPA) and other agencies averted an environmental and ecological disaster. Crucial facilities such as power stations and oil refineries functioned normally, and the beaches at Sentosa and East Coast were unaffected. As a result, potential compensation claims by Singapore authorities in respect of the resources mobilised to combat the pollution and measures taken to restore the environment have been greatly reduced. The claims will basically be for the clean-up costs. This is estimated to be within the limit which Singapore can claim under the Civil Liability Convention 1969. We are confident that the claims will be met in full. LAKEVIEW MARKET 9.”
“COEs are allocated at the start of each quota year beginning in May. The total COE quota for a year is the number of vehicles deregistered in the previous year, plus additional COEs to allow for a 3% growth in the vehicle population. 25% of the COEs from deregistered vehicles are allocated to the Open Category. The other 75% are distributed to other COE categories, in proportion to the vehicles deregistered in each category. The additional COEs to cater to the 3% growth are distributed according to the vehicle mix as at the end of the previous year. The supply of COEs in each category is therefore fixed at the beginning of each quota year in May. Both the supply and the distribution of COEs by vehicle categories are publicised well ahead of the bidding exercises to allow prospective buyers to make informed decisions. As supply in each COE category is fixed, it is the demand for the month which will fix the COE price. The exceptionally low price of COE for 1,601 cc to 2,000 cc cars (Category 3 COEs) in the December 1997 tender exercise was not due to an imbalance of distribution of COEs but a lack of demand for Category 3 COEs for that month. In the January 1998 tender, the price of the Category 3 COE went up to $43,880, with demand exceeding supply by more than 1000%. COST OF OIL SPILL CLEAN-UP OPERATION 8. Mr Low Thia Khiang asked the Minister for Communications (a) whether the total cost of the clean-up operation and other claims arising out of the oil spill caused by the collision of the oil tankers Orapin Global and Evoikos has been ascertained; and (b) how much of the cost can be claimed under the Civil Liability Convention 1969 and from other organisations.”
“Currently, taxi stands are provided in HDB town centres, outside MRT stations and at shopping centres in the HDB estates where there is high demand. Taxi stands have not been set up in other parts of HDB estates because they have not been popular. Demand for taxis in HDB estates is fairly evenly distributed throughout the estate. It is not practical to require passengers to wait only at taxi stands for taxis, whereas they could now flag down a taxi right at their door step. CERTIFICATES OF ENTITLEMENT 7. Mr Low Thia Khiang asked the Minister for Communications (a) whether the relatively higher price of other categories of Certificates of Entitlement (COE), as compared to the price of the COE for 1,601 cc to 2,000 cc cars, was due to an imbalance of distribution of COEs; and (b) how does the Government fix and allocate the number of COEs to each category.”
“"AFTER OFFICE HOURS" CLINICS FOR NON-EMERGENCY CASES 48. Dr Lily Neo asked the Minister for Health whether there are plans to have more "after office hours" clinics for non-emergency cases in the other Government Hospitals and the Restructured Hospitals apart from those in the Singapore General Hospital and the Tan Tock Seng Hospital.”
“TAS requires the operators to regularly monitor the Quality of Service (QoS) of our telephone networks, fixed as well as mobile. It is aware of incidents where mobile phone users experience service disruptions at certain places in Singapore. This is caused by environmental factors such as local obstructions, eg, high rise buildings between mobile phones and base stations, and radio interferences. TAS has a set of QoS standards that spells out the minimum service levels which both SingTel Mobile and MobileOne are required to comply. These standards are benchmarked against international service levels achieved by service operators in places such as UK, Hong Kong and Australia. Overall, both service providers have been able to meet the standards. Service providers are also required to monitor users' feedback received and submit the statistics to TAS for monitoring. Both operators have been taking measures to rectify or make good any problems fed back by consumers. MILLENNIUM BUG 46. Dr Toh See Kiat asked the Minister for Finance whether laws or directives which make it mandatory for companies to disclose any substantial exposure to expenditure, loss or litigation arising from the deficiency in their information systems referred to as the Millennium Bug, are being contemplated. Dr Richard Hu Tsu Tau: The treatment and disclosure of expenditure, losses, expenses etc incurred, whether as a result of the Millennium Bug or any other IT related problem, is strictly an accounting issue for the company's accountant and auditor to handle. If the loss is deemed significant, it will be highlighted in the company's accounts, which are publicly released. It is not necessary to legislate for a one-off event or for specific types of expenditure or losses.”
“As part of its continuous efforts to make travelling by public transport more convenient and comfortable, the Land Transport Authority (LTA) has embarked on an extensive programme to upgrade bus shelters and construct linkways. Under this programme, about 4,000 bus shelters will be upgraded in phases. The programme commenced this year, after a successful pilot project to test various new bus shelter designs. LTA is now proceeding with the first phase to upgrade some 800 bus shelters and construct about 200 linkways in older HDB estates. Work on these facilities will be starting soon and residents can look forward to using these upgraded bus shelters by mid-1998. The new design bus shelters will be sized according to the estimated number of passengers using them. They will be wider than the present ones so that passengers will have more shelter from wet weather. Linkways to bus shelters will also be wider and, wherever possible, will have planting screens to provide better weather protection. Based on commuters' feedback, LTA has also worked out a list of facilities to be provided within the new shelters. For example, besides lighting, seats and notice boards, large bus shelters will be provided with public telephones and ticket vending machines. FEEDBACK ON DISRUPTIONS TO MOBILE PHONES 45. Mr Chuang Shaw Peng asked the Minister for Communications whether his Ministry is aware of the feedback from mobile phone users of frequent disruption to their mobile phones at certain places in Singapore and, if so, if he will elaborate on the measures taken to rectify the problem.”
“The impact of the oil spill on the ecology of the affected areas can only be assessed after a comprehensive study has been carried out. The Tropical Marine Science Initiative of the National University of Singapore has proposed a one-year research project to study the ecological impact of the oil spill. The Tropical Marine Science Initiative (TMSI) of the NUS has proposed a one-year study on the effects of the oil spill on the sea and aquatic life. The TMSI has submitted the project proposal to the MPA to seek partial funding. ENV is currently exploring the scope for the Ministry to participate in the study proposed by the TMSI. It is still too early to ascertain the total cost of the clean-up operations. The bills and claims are still coming in. However, because the situation was brought under control relatively quickly, it is expected that clean-up cost and claims for economic and environmental losses will be lower than expected for an oil spill of this magnitude. Throughout the incident, the operations of the port and the oil/petrochemical complexes were unaffected; international shipping in the busy Singapore Strait went on as usual; and apart from a few off-shore islands, Sentosa and mainland beaches remained clean. PROVISION OF PRE-EMPLOYMENT TRAINING FOR PERSONS RETURNING TO WORK 28. Mrs Lim Hwee Hua asked the Minister for Trade and Industry to update the House on the status of proposed plans by the Government to provide pre-employment training or orientation for housewives and older persons seeking to return to work.”
“So I hope that those assurances will serve in some way to allay the fears and anxieties of the men and women of PSA. 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. EDUCATION (AMENDMENT) BILL Order for Second Reading read.”
“Any organisation undergoing such a fundamental change will elicit such fears among its staff. But I am very pleased to say that after a long process of explanation and consultation, there is a very, very strong team spirit in the organisation. They want to make this new company succeed. They know that this is a move that is necessary and essential, and they want to be part and parcel of this process. I think there is absolutely no doubt in my mind that the level of cooperation and understanding of this move among management and union is extremely high. However, having said that, I think the management will have to demonstrate in concrete terms that after corporatisation and eventually privatisation, the interests of the members will be protected. In this respect, I would like to assure the Member that all the staff of PSA will be retained at the point of corporatisation. There will be extensive retraining and upgrading programmes put into place. I think the management will, in all fairness, not be able to preserve or keep every single person in his or her job because the nature of the industry is changing. It is precisely because of this that the corporation will have to change. So Members will have to accept that there would be some dislocation in terms of jobs, but the staff would be retained. They would be given adequate training and skills upgrading programmes in order to prepare them for the new PSA Corporation. Of course, over time, the terms and conditions of service of PSA Corporation will have to be readjusted in line with the terms and conditions of service in the private sector. But if, as we all expect, and I am confident that it will, as PSA grows, the terms and conditions of service will similarly be enhanced.”
“When PSA celebrated its centenary a few years ago, I attended the ceremony and when I saw what the original Harbour Board was like in the old days, I could not help but feel a tremendous sense of pride and achievement, and a sense of gratitude to all the men and women who actually brought PSA to where it is today. In particular, the men and women who worked in the unions and who worked in the management at that point in time. The way that they worked together to achieve this transition, from Harbour Board in the old days to PSA today, speaks volumes. In fact, not too long ago, we saw the operations and we saw pictures of how Harbour Board used to run these operations, the amount of manpower that was involved, the kind of machinery that was employed. When you see the PSA of today, when you compare and contrast the two, one cannot help but feel, as I said, a tremendous sense of pride and gratitude to all the people who made it possible. So I think Encik Zainul Abidin's tribute to PSA is well founded, not just because he is a member of the Board or Executive Secretary of the SPWU. I wholeheartedly endorse his comments. In fact, I think we have, in PSA, the potential for another Singapore company to become a world class corporation, to be a recognised world class brand name in the mould of SIA, for example. And this is a promise which I am sure the new PSA Corporation will fulfil in the years ahead. Of course, there will be anxieties on the part of the staff concerned. The members of the union and the management committees have been working together over the last 1(r) years in order to explain the purpose behind this move, in order to allay the anxieties and fears that the Member spoke about, and these anxieties and fears are quite natural.”
“So what this clause does is really to give the Government more flexibility in terms of privatisation, which is the next step of the process. If we decide to privatise PSA Corporation, we would need to have this particular requirement. Just for the information of the Member, this stipulation was also carried in the Act when we corporatised Singapore Telecom and Singapore Power. Mr Chay also asked about other benefits including medical, housing, etc. As I mentioned in my speech just now, the transfer of employees from PSA, the statutory board, to PSA Corporation, the company, will be on terms which are no less favourable than what they are currently enjoying. This applies to all the various terms and conditions of service pertaining to the employee at that particular point in time. It means pension, gratuity and all the allowances. It means medical benefits, etc. Pensionable officers, for example, will not lose any of their pension benefits or their seniority when they are transferred to this company. For future pensioners who also have a right which is guaranteed under the present statutory board's Act, PSA's liability towards them will also be preserved and will be transferred to PSA Corporation. In other words, PSA Corporation will be responsible for their medical benefits and all the other benefits. Mr Zainul Abidin spoke very eloquently about the progress of PSA. I think all Singaporeans should be and, in fact, all Singaporeans are proud of the achievements of PSA.”
“In terms of benchmarking for best practices, I would like to assure the Member that this is what PSA is currently practising. In fact, I receive a report on a regular basis comparing not just one criterion but many, many facets of port operations; how does PSA compare with the other ports in the world, in terms of speed of loading of containers, in terms of productivity of quay cranes, productivity of land use, and productivity of manpower and equipment. It is this kind of meticulous benchmarking against best practice throughout the world that has made the PSA the most efficient port operator on most, if not all, the benchmarks in the world today. And I say this having looked at other port operators and looked at the way they run their ports and looked at the facilities that they have. This is something that PSA has every reason to be proud of. I do not see that it will forsake this practice and, in fact, the process of corporatisation is going to motivate it to search for even greater and more innovative ways of improving productivity. Mr Chay asked some very specific questions about two of the clauses. I would like to enlighten him, first, on clause 7 as to why we have deemed the investment in securities of the successor Company to have paid dividends for the past three years. This clause is necessary in order to immediately qualify investments in the successor Company, in this case PSA Corporation, as permitted under the Trustees Act. Without this provision in clause 7, trustees would not be able to invest in PSA Corporation's shares until the shares meet the criteria stipulated in the Trustees Act. And one of the criteria stipulated in the Trustees Act is a requirement that a company must have been paying dividends in the previous three years.”
“Mr Speaker, Sir, I thank the Members for speaking in support of the Bill, particularly for their understanding of the competition that is facing the Port of Singapore Authority. Mr Chay Wai Chuen is totally correct in saying that the competition that PSA is facing now and in the future is quite different from what it used to face in the past. PSA has grown on competition. In fact, I would like to make a point that in the transhipment business, PSA is not a monopoly. It has to fight very hard for each and every transhipment box that comes into the port of Singapore, because this box could easily have gone to another port or it would not have been transhipped in the first place. So PSA is not operating as a monopoly. And it is this very reason that has motivated the Government at this point in time not to invite other port operators into Singapore. However, as I have said in my speech, we do not rule out the possibility that we will do so in the future, as and when the situation changes. The new Pasir Panjang Terminal is going to be built as a long-term project over many, many phases. And if the port grows, as we expect it will, there will be, in the future, room for other players in the market. However, at this stage, I repeat again, there is already competition. The competition is there. It is keen. It is strong. As a first step in the life of PSA Corporation, we do not intend to subject it to any competition in terms of port operations. However, there will be opening up and deregulation in downstream activities. For a start, we have done so in tug and pilotage services, and MPA will be looking into other areas where such downstream services can be further liberalised and deregulated for greater efficiency in the port of Singapore.”
“The SPWU has been exchanging notes with the Health Corporation of Singapore Staff Union (HCSSU), the Union of Telecom Employees of Singapore (UTES), Union of Power and Gas Employees (UPAGE) and the Singapore Union of Broadcasting Employees (SUBE) to learn from their experiences too. At the end of the day, I am confident PSA's process and product out of this corporatisation will be a model for others to follow. Nevertheless, with any major change, there are anxieties and concerns which need to be handled sensitively. Among others: will there be retrenchment? Job security is indeed uppermost in the minds of the workers. What will liberalisation and deregulation mean? Will greater competition mean displacement and major redeployment of staff? What will restructure mean? However, I am most glad to note that the management and the union have had dialogues to manage the changes and concerns together. Sir, PSA is not short of creativity. It has had to be bold to come to where it is now, as No. 1. I trust it will also be bold, creative and generous when it comes to handling staff concerns related to corporatisation. PSA needs staff goodwill and should do all it can to motivate staff to face the challenges of corporatisation together. After all, they are in the same boat sailing full steam ahead towards PSA 21 and the world class corporation it deserves to be. Sir, I support the Bill.”
“Corporatisation, and eventually privatisation, will be the answer if PSA wants to remain competitive and successful. It cannot wait for the boxes here. It has to go where the boxes are and serve the three billion in Asia and in fact we should also search for the six billion people in the world to serve. Dalian in North East China, Fuzhu in Central Eastern China, perhaps five or six more ports in ASEAN, in South Asia, the US$187 million contract to build a port in Aden, and I am sure more to come, will testify to this need for PSA to prepare itself for the challenges of competition and globalisation. As more and more people and countries progressively go for outsourcing, PSA will also grow in terms of logistics handling as a new niche. PSA's confidence in its core competencies, as in handling large volumes of container boxes, will also stand in good stead. I am glad to note that PSA will get customer-focused, through team work, innovation and open communication within PSA, as again emphasised by the Chairman of PSA last month. Allow me to take this opportunity to say that the Singapore Port Workers' Union (SPWU) and its members are whole-heartedly behind any move to strengthen PSA's position. They are geared to face the new wave of challenges in globalisation squarely. The relationship between management and the union has been excellent and SPWU looks forward to working together with management to make a success of corporatisation. However, the workers also expect equitable and fair sharing of the returns. Fortunately for PSA, it is not the first statutory board to corporatise. PSA can learn from the experiences of those who have been through this process.”
“Sir, we have heard what Prime Minister Goh Chok Tong said about Dalian last night at the National Day Rally. Notwithstanding what the Mayor of Dalian, Mr Bo Xilai, said about the beautiful people of Dalian, for me, Sir, Dalian reminds me of the PSA flag flying high. Yes, Sir, PSA successfully wooed Dalian's port business. I felt indeed very proud of Singapore and PSA last April, first, in Beijing when Premier Li Peng and Mr Goh witnessed PSA exchanged documents with the Chinese shipping company and then when PM Goh officiated PSA's topping ceremony at the Dalian container port. PSA indeed has come a long way from its early humble beginnings. Almost as old as modern Singapore, present day PSA started as Tanjong Pagar Dock Company (TPDC) in 1864 and only in 1912, it became known as Singapore Harbour Board and 100 years after the Tanjong Pagar Dock Company took shape, it finally took the name of Port of Singapore Authority (PSA), the name it will continue to carry proudly as it sails forth to become a world class corporation. Sir, listening to Dr Yeo Ning Hong, the Chairman of PSA, talking to his staff last month on vision PSA 21, one cannot but be convinced that not only is PSA in good hands but the leadership at the helm knows what it is doing. Sir, I agree with the Minister that the 7,000 management and non-executive staff handling 770 million tons of shipping and 12.9 million TEUs or boxes last year is a no mean feat. Singapore after all is the world's busiest port. Despite that, PSA, like SIA, as what Prime Minister Goh told us last night at the National Day Rally, cannot rest on its laurels. The challenges of globalisation can make PSA vulnerable. PSA will have to be nimble, as stressed by the Minister just now, as it searches for its new niches.”
“I am not really fully apprised of the rationale of why it is necessary to deem the investments in securities of the successor Company during the financial year to have paid dividends for the past three years when, in fact, there is no such successor Company. Why can we not have a provision where the Minister can waive certain requirements if the aim of it is actually to satisfy some contingent requirements later on, maybe for listing, and so on? Clause 9 is on the pension and gratuity of transferred employees. I am glad that the Minister has just now mentioned that such liabilities to pensions and gratuities which the Port of Singapore Authority has will be novated to the new successor Company. But specifically, I would like to ask about the other benefits of retirement, perhaps medical or housing, which there may be such outstanding issues. I am not sure but perhaps the Minister can clarify. The third point is on retiring workers or near retirement-age workers. How are they going to be treated? Have provisions been made for such a group of people who are near retirement that they can be novated to enjoy the continuing terms of benefits that they have been working and their service to the PSA in the past will be fully recognised even when they are nearing their retirement age? There has been some experience with corporatising efforts in the past where people, who have a long service and who are nearing retirement age, were conveniently asked to retire early and they might not get the full benefits of their retirement. I would like the Minister to comment on this. Mr Zainul Abidin Rasheed (Cheng San): Mr Speaker, Sir, may I first declare that I am currently serving as the Executive Secretary of the Singapore Port Workers' Union and also serving on the PSA Board.”
“I think this is the right approach that we should take to ensure competition and to do better even within the different business units of the organisation is important. I am sure there are other services that can and could be open to private sector business to contribute and compete. Only through this process can efficiency and lowered cost down the line in the port service be engendered. I hope the Minister will consider this when setting the perimeters and the organisation and structure of the privatisation process. It is important at this stage to take a long and hard look at this issue while we are at this crossroad in dissolving the Port of Singapore Authority which has run the port so effectively and efficiently for so long. The Minister may consider requiring the successor Company to re-engineer its business process and benchmark itself against the best practices and productivity performance indicators of other efficient and well-known ports elsewhere in special niches of their activities - not just overall, we know that overall the Port of Singapore is one of the best ports, it is probably the world's best port - in order to face this coming serious regional challenge. In this regard, I must say that I have every reason to believe the successor Company will be up to the challenge. After all, the people who run this port here do not achieve the world class organisational standing that they have been having for years. There are three points that I would like to comment on this Bill. Clause 7 of the Bill is on the application of the Trustees Act in relation to investment in the successor company.”
“In the face of globalisation now, the competitive element is really crucial, and this is where all shipping companies and freighters are looking at. In the past, we used to exploit our locational advantage as an international port in the sea route and the trade route fully. But today, cost competitiveness is fast becoming the decisive factor in the face of telecommunications and other facilities which enhance information flow. Hence, we should be mindful that the goal of privatisation effort that comes with this dissolution of PSA should really be looking at competitiveness and efficiency. It must not be just a privatisation in form but of necessity be one in substance. Downstream services which the Minister has just now mentioned should rightfully be open to private sector firms to compete in providing such services. He has just mentioned tugs and barges but there can be many others in warehousing, distribution centre, logistics, and so on, and, of course, not forgetting the possibility of berth operations so long as these private companies or private sector firms can do it cheaper, faster and better. Otherwise the privatisation effort of state charters in such a case runs a danger of substituting bureaucracy for an old boy's network of subsidiary company's interest. I am sure the Minister is aware of this pitfall which has happened in many cases of privatising statutory agencies in overseas countries in Europe. In Rotterdam, for example, berths are privatised and run by different companies. Just now, the Minister mentioned that he does not want to implement this separate company for berth operation as yet. Therefore, he has included a non-exclusivity clause in the provisions.”
“It represents many months of intensive work by officers of various Government Ministries, MPA and PSA. I am confident that PSA Corporation will grow from strength to strength, and transform itself from being an operator of a world class container port to a world class corporation and a leader in international port terminal operations, management, and in logistics services. Sir, I beg to move. Question proposed. Mr Chay Wai Chuen (Tanjong Pagar): Mr Speaker, Sir, I would like to speak in support of the motion in the name of the Minister for Communications. This Bill seeks to dissolve PSA which its predecessor, the Singapore Harbour Board, has been running our port for decades. As we have learned from the Minister, it also seeks to enable the privatisation of the successor Company. We read very often in the papers and, I believe, in the news that the port has been facing very severe competition, not just in the region but also from as far as North or East Asia. And I believe, with this formation of MPA that the Minister has mentioned, that the organisation has been gearing up for this privatisation and corporatisation effort. I think the time is now really crucial in the face of globalisation of the world economy and this competition that we are facing today is quite different from what the competition that we have been hearing about for years. This is because the regional economies have been making good progress and there are economic developments over the last decade or so with foreign trade and investment growing. The governments and the port authorities have become more and more confident of their expertise and they have continued to invest and build up this expertise.”
“The PSA (Dissolution) Bill Sir, let me now address the key provisions of the PSA (Dissolution) Bill. Clause 1 of the Bill anticipates the setting out of the operational date of corporatisation. The Minister for Communications will appoint the date at which the Act will come into operation and PSA dissolved. Clause 3 provides for the transfer of property, rights and liabilities from PSA to the successor Company, the Government or MPA. Clause 4 provides for the issue of securities in the successor Company to a wholly-owned Government company, on terms as directed by the Minister for Finance. Clauses 5 to 7 describe the financial structure of the successor Company and the terms of issue in relation to the Companies Act and Trustees Act. Clauses 8 to 10 provide for the transfer of PSA employees to MPA or the successor Company, as appropriate, on terms no less favourable than those they enjoyed immediately before their transfer. The rights of former and present employees of the PSA under past or present pension, gratuity or allowance schemes will be preserved. PSA's liability to pay the same will be transferred to MPA or the successor Company, as appropriate. The Bill allows for the continuity of existing agreements and pending proceedings involving PSA at the operational date. It also makes the necessary provision for continuity of port tariffs and rates fixed under the repealed PSA Act until such time when new tariffs and rates are fixed by the successor Company. Conclusion Sir, in conclusion, let me say that the corporatisation of PSA is part of a fundamental shift in the way we manage our port and this is in response to the fundamental changes in the industry. This shift is necessary in order to ensure that Singapore remains a major transhipment hub in the region.”
“However, MPA will regulate the tariffs of local cargo until such time as competition is introduced in the local port industry. This is to ensure that tariffs for local cargo remain competitive to safeguard the interest of local exporters. In view of strong external competition, the Government sees no need to introduce another operator in the container port industry as yet. PSA is already operating at a high level of efficiency and PSA should continue to have the flexibility to operate at maximum efficiency with economies of scale. However, as the industry and the operating environment continues to evolve and the future is uncertain, it is prudent that we keep our options open. Hence, there will be no exclusivity clause in PSA Corporation's licence or in any public listing document. However, in areas where liberalisation will enhance Singapore port's competitiveness, MPA will allow services to be offered by other operators besides PSA to create competition. One example is the provision of tug services at our port and shipyards. In July this year, MPA permitted shipyards to order tug services from operators other than PSA for servicing internal movements in the shipyards. Tomorrow, MPA will announce plans for the further liberalisation of tug services. The liberalisation will take place in phases over a few years and should bring about more competitive pricing and higher service standards in the industry. Mr Speaker, Sir, PSA Corporation will first operate as a wholly Government-owned company for a period of time. It will be listed some time later on the Stock Exchange of Singapore as part of the Government's plan to build up the assets of our citizens by giving them a stake in one of the country's major assets.”
“Based on its track record, PSA was recently appointed the manager of the new exhibition centre "Singapore Expo" at Changi. In addition, PSA Corporation will continue to manage the World Trade Centre, or the WTC, as well as the existing cruise centre and ferry terminals. The Government has allowed PSA to retain the WTC because over the years, PSA's successful development and management of this harbour-front complex has built up PSA's brand name. The international maritime community has come to identify the WTC with PSA. Allowing PSA to retain and re-develop the WTC as a world class project will enhance PSA's credentials and boost its chances of securing other harbour-front projects, which may be integrated with port and cruise centre developments. Although PSA owns quite a few properties as a statutory board, it will be returning to the State properties which are not germane to its core businesses. At corporatisation, PSA will only retain properties related to its businesses in container and cargo handling, warehousing and logistics, harbour-front development, facilities for its own staff, and properties for essential services which it will have to continue to provide after corporatisation. Economic regulation Mr Speaker, Sir, to ensure the provision of adequate and cost-effective services at good service levels, and to safeguard the introduction of new operators where appropriate, some form of economic regulation will be put in place. MPA, as the regulator of the port industry, will license the port and marine services provided by PSA Corporation. MPA will not regulate the tariffs of transhipment cargo since there is sufficient international competition to provide the necessary checks.”
“We must free PSA from whatever encumbrances that a Government statutory board might have to face the new challenges boldly, flexibly and creatively. The corporatised PSA will have to be more customer-oriented and market-oriented. It must provide value-for-money services to all customers with even greater speed, quality, reliability and flexibility. It must be more nimble in responding to competition. It must be quick to seize overseas opportunities with good growth potential, by leveraging on its experience and expertise gathered over the past decades. The promise of corporatisation has already resulted in many positive developments. Recently, PSA successfully concluded long-term contracts with several major alliances and shipping lines. PSA has also ventured overseas, starting with port investments and development projects in China and Indonesia. In 1996, PSA set up a joint venture company with Dalian Port Authority. In February 1997, PSA signed a MOU to develop the Cigading Port in Indonesia. In April of this year, it signed another MOU with the Fuzhou Port Authority, again to manage and operate container terminals. And just recently in June, PSA signed a contract to build a container terminal in Aden in the Republic of Yemen. Plans for the corporatised PSA Mr Speaker, Sir, I would now like to describe briefly the plans for the corporatised PSA. The corporatised PSA will be known as PSA Corporation. Its core business will be the operation of the container terminals in Singapore. In addition to this, PSA Corporation will expand into two new strategic areas: one, investment, development and operation of international port terminals and related harbour-front developments; and two, warehousing and logistics where PSA already has relevant expertise.”
“Our past achievements and our traditional way of doing things are not a guarantee of our future success, especially in a future which is not a straight-line extrapolation of the past. The shipping industry and the environment in which we operate are no longer the same. First, the shipping industry has been undergoing a major restructuring and rationalisation in recent years. Due to falling freight rates, profit margins for shipping lines are narrowing. For example, the average freight rate for the Singapore/Europe trade today is about one-third the rate in 1991. To cut costs, shipping lines are re-aligning themselves into large consortia and alliances. Naturally, these major consortia will have greater bargaining power to negotiate lower port rates and better terms of service with all ports, including PSA. Second, competition from other ports for a share of the booming container transhipment business in the region is increasing. Existing ports in the region are expanding their facilities and urging shipping lines to make direct calls. New ports are being planned or are being built. Some of these ports have plans to ship cargo direct to their destinations, instead of transhipping through PSA. Others have openly declared their intention to challenge PSA as the transhipment hub in the region. The competition is not confined to regional ports. Ports further afield are also competing with Singapore for calls by mainline vessels. These are fundamental changes in the industry. We must recognise their impact. We must respond to them boldly if we are to maintain and consolidate our position as the leading hub port in the region. One way to do this is to change the fundamental way we manage our port.”
“Manufacturers and traders in the region also have more frequent sailings and faster transit times and this translates in turn into lower inventory costs, shorter time-to-market, and increased competitiveness. Lloyd's List, which is an authoritative shipping newspaper, had a recent article, 29th May 1997, and it summarises the situation in this way, and I quote, "Singapore's predominance as the main gateway has been a fact for decades and not just because the Lion City is clearly the natural port at the tip of the Malay Peninsula, but also because it has historically provided the most efficient manner of entry and exit.". But history and geography are not the reasons why Singapore will remain the region's preferred port. It will only be so because, and I quote again, "of sound commercial reasons like the fact that cargo is still shifted much faster there and finds its way into the global transport chain more quickly than from anywhere else in the region." So by consolidating cargo and putting them into the global transport chain more efficiently and quickly, PSA not only brings substantial commercial benefits to shipping lines and shippers, but also contributes significantly to the economic prosperity of Singapore and the surrounding region. The PSA's efficiency and status as a world-class port has been recognised both locally and internationally. This year, at the Asian Freight Industry Awards, Singapore was given the title of "Best Seaport in Asia" for the tenth consecutive year. PSA was voted the "Best Container Terminal Operator" for the eighth year. However, all these awards and PSA's long and continued history of success should not lull us into a sense of complacency. Neither should it blind us to the challenges ahead.”
“5 million TEUs with three terminal operators, the next largest port Kaohsiung handled 5.1 million TEUs, less than half. Next in line were Rotterdam, Pusan and Long Beach, which handled 4.9 million, 4.7 million and 3.1 million TEUs respectively. Singapore is also one of the major transhipment hub ports in the world. Mainline vessels from all parts of the world call at Singapore, where cargo is collected from and distributed to the rest of the region through an extensive network of feeder ships. On a typical day, PSA handles about 40,000 boxes, or TEUs, which come from about 25 mother ships and 30 feeder ships. The complexity of transhipment operations is not only because of the large volumes of boxes handled, but also due to the large matrix of connections. To give the House an idea, typically, say, a modern third-generation container vessel would load boxes from 45 other ships and discharge boxes to another 60 carriers. So it is an extremely difficult and complex process. Despite the complexity of this process, PSA is able to handle a large volume of containers within a short vessel turnaround time because of its very highly automated and computerised operations. For example, third generation container ships are serviced at an average rate of 86 containers per hour, which is the highest service rate in the world. Transhipment has brought to the region benefits which would not be possible if each country were to operate its own port, serving its own cargo. Transhipment allows shipping lines to lower their costs by operating fewer but larger vessels. Shippers enjoy greater frequencies of calls, more choices in shipping connections and therefore more flexibility in terms of carriers, routes and time-tables.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Background Sir, in January 1996, I came before this House to seek approval for the setting up of a statutory board called the Maritime and Port Authority of Singapore, or MPA in short. At that time, I also made known the Government's intention to corporatise and eventually privatise the Port of Singapore Authority (PSA). On 2nd February 1996, MPA was formed. In addition to taking over the statutory functions of PSA, MPA is responsible for economic regulation of the port industry after PSA's corporatisation. Over the last one and a half years, MPA has worked out a regulatory framework and built up the necessary expertise and standing to perform its role as regulator and promoter of the port industry. The setting up of MPA was the first step towards the corporatisation and eventual privatisation of PSA. Today, we are about to take another step towards reaching this goal. Sir, the Bill before this House seeks to dissolve the Port of Singapore Authority and to repeal the Port of Singapore Authority Act. The Bill will transfer PSA's existing property, rights and liabilities to the successor Company, the Government or the MPA, and make the financial arrangements for corporatisation, and eventual listing. Reasons for corporatisation Mr Speaker Sir, first allow me to explain the reasons for corporatising PSA. Singapore has been the world's busiest port in terms of shipping tonnage since 1986. PSA operates the world's largest single container terminal, with a throughput in 1996 of nearly 13 million boxes in terms of twenty-foot equivalent units, or TEUs. To put this in perspective, apart from Hong Kong, which handled 13.”
“of such bids 1 1 1 1 1 1 1 -- _________________________________________________________________________________________________ Apr 97 Quota 196 1,118 338 131 818 740 415 3,756 Bids received 733 3,279 707 264 1,334 1,012 1,099 8,428 Successful bid 192 1,116 338 130 796 740 415 3,727 QP for May 97 $35,550 $53,887 $63,500 $61,700 $32,940 $2,855 $65,488 -- Lowest bid $2 $1 $1 $1 $13,338 $1 $8 -- amount No. of such bids 1 1 2 1 1 1 1 -- _________________________________________________________________________________________________ _________________________________________________________________________________________________ Vehicle Category Processing Month Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Cat 7 Total _________________________________________________________________________________________________ May 97 Quota 200 1,118 336 128 832 739 412 3,765 Bids received 626 3,929 911 301 1,463 991 925 9,146 Successful bid 196 1,091 336 124 823 727 409 3,706 QP for Jun 97 $39,888 $60,900 $69,500 $66,900 $34,200 $2,860 $68,902 -- Lowest bid $50 $10 $1 $1 $10 $800 $20 -- amount No. of such bids 1 1 2 1 1 2 1 -- _________________________________________________________________________________________________ Jun 97 Quota 200 1,143 336 131 819 751 415 3,795 Bids received 425 3,427 807 346 1,225 1,119 999 8,348 Successful bid 199 1,130 326 131 804 743 407 3,740 QP for July 97 $41,008 $62,208 $73,351 $73,500 $33,240 $3,156 $73,502 -- Lowest bid $1 $300 $1 $1 $13,338 $1 $20 -- amount No. of such bids 1 1 2 1 1 1 1 -- _________________________________________________________________________________________________”
“The information requested above is given below. VEHICLE QUOTA RESULTS _________________________________________________________________________________________________ Vehicle Category Processing Month Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Cat 7 Total _________________________________________________________________________________________________ Jan 97 Quota 270 1,119 272 99 676 592 430 3,458 Bids received 473 1,732 437 230 1,013 1,010 868 5,763 Successful bid 270 1,113 272 97 667 586 421 3,426 QP for Feb 97 $26,690 $44,950 $63,888 $58,100 $30,304 $3,208 $60,002 -- Lowest bid $2 $1 $2 $100 $1 $1 $1 -- amount No. of such bids 1 1 2 1 1 1 1 -- _________________________________________________________________________________________________ Feb 97 Quota 249 1,108 272 101 656 597 439 3,422 Bids received 458 2,132 416 310 1,101 1,176 1,193 6,786 Successful bid 249 1,099 272 101 655 591 439 3,406 QP for Mar 97 $27,220 $45,008 $53,000 $60,888 $30,610 $3,350 $60,810 -- Lowest bid $2,002 $1,000 $210 $200 $238 $2 $380 -- amount No. of such bids 1 1 1 1 1 18 1 -- _________________________________________________________________________________________________ Mar 97 Quota 249 1,111 272 98 648 597 430 3,405 Bids received 657 2,512 610 309 1,102 959 982 7,131 Successful bid 249 1,109 271 94 641 596 427 3,387 QP for Apr 97 $29,598 $46,826 $60,050 $62,100 $31,998 $3,256 $60,900 -- Lowest bid $1 $1 $2,001 $200 $12,200 $1 $10 -- amount No.”
“But the primary objective is really so that people do not use the bus lanes when the buses are there, so that they do not block the progress of the buses. There are many, many such policies, strategies and schemes that the Government has embarked upon, especially the overall management of vehicle ownership, a major transport policy. A major beneficiary of this policy would be the bus operators because when your travelling speeds are high, when you are able to make better use of your buses, that translates into millions of dollars because you are able to make use of your equipment much better. So these are the ways, as I have explained in my reply earlier, that Government can actively help the public bus operators. What is the end result of all this? Eventually, all these mean that our bus fares are kept low and kept affordable. I say this not just as a bare statement. I say this because, first of all, look back over the last 10 to 15 years, up to today, how have bus fares moved? Compare our fares with other countries. Compare bus fares with service levels. Compare route coverage. Compare capacity of the buses. Compare the usage of the buses. The quality of the buses. I think if you look at all these in context, I am sure the Member would not be so quick to say that bus fares are increased at every wave of the wand.”
“I think it is not correct, first of all, to say that the Public Transport Council allows the bus operators to increase fares at the wave of the wand. I know for a fact that they take these applications very seriously and my Ministry certainly takes these very seriously because this is something that affects a lot of people. It affects, particularly, the lower income, who have to depend on public transport for moving around. Most of them do not own a car. So we take these very seriously. This is precisely the reason why, if you look at the track record, you will see that the bus fares have not increased in tandem with increases in other costs, such as labour cost and cost of buses and spare parts. How has this been done? Obviously, the first measure is to raise productivity. Over the last five to 10 years, public bus operators have been able, fortunately, to increase their productivity. They have gone into one-man operation, they have gone into bigger buses and they have gone into more efficient tracking of buses, scheduling of buses and so on. In this area, Government can play a very big role. In fact, better than subsidising them, I submit that it is more important for us to make sure that the operating conditions for buses are favourable. We do make it a point to make the operating conditions for buses as smooth as possible, even to the extent of incurring the wrath of motorists. For example, bus lanes. I get a lot of complaints from motorists about why they are not allowed to use the bus lanes. Recently, LTA started a trial and put cameras on buses so that it deters people from using the bus lanes. There was a hue and cry. They say it is unfair, invasion of privacy and so on.”
“It is a question of whether people are mentally prepared to change, and then physically make the effort. To create an objection in one's mind that bus fares are going up without actually examining the extent of the increase, without actually looking at the details, I think is to do an injustice to the whole system. In fact, if he were able to take advantage of the many schemes available, for example, if he were to buy a farecard, he will find that there is no increase at all. 70% of MRT passengers in the last fare revision did not have to pay a single cent extra. Sir, I think if Members look at everything in that context, they will find that the Government will continue to encourage people to use public transport on the basis that it is a viable alternative, on the basis that the fares are affordable, on the basis that the other choices that motorists will have to make will become relatively more and more expensive.”
“Sir, I think this is a very common objection, in the sense that public bus and MRT fares had to be increased at this particular point in time. But if you look at it in total perspective, as I tried to explain in my answer just now, Members will find that the fares for public transport, be it buses or MRT, have been kept low and affordable all these years. There will be increases in fares. Bus services depend heavily on labour. 50% of their cost is in labour. Every year, bus drivers and mechanics have their wages increased. It is part of the collective agreement. Unions do a good job. Wages of public transport employees go up. Over the last six years, on average, public transport employees' wages have gone up between 8-10%. Bus fares have not gone up between 8-10%. On the contrary, over the last six years, they have gone up, on the average, something like 1.3-1.5%. So we cannot have a situation where bus fares and MRT fares will never go up in order to encourage more usage. But it is important that we keep the price of public transport relative to the price of private transport, relative to the price of owning and using a car, cheap and affordable. That is the relativity we are talking about. Iin this particular episode, it is going to cost a person $5, if you are talking about CTE and CBD, to drive from his home through the CTE to his office in the business district. As an alternative, if he can be driven to an MRT station, he can make that same trip for $1.20-$1.50. If he takes a bus, it is slightly less than that. That is the relativity we are talking about. In terms of time penalty, it may not be much more, because there are certain bus services and MRT routes which will take him straight to the CBD.”
“For example, if you are talking about improving public bus services, then we have to manage congestion on the roads, which means road pricing and bus lanes, although motorists will find this inconvenient. And we cannot manage the demand for cars if we do not improve public transport. So Members will realise that we have to do both together. I ask Members of this House and the motorists to take a long-term view and to support all these measures in order that we can build a long-term sustainable quality transport system for ourselves.”
“Sir, I expect that there will be some initial uncertainty and unhappiness when ERP is implemented. I can quite understand this because, after all, we are talking about changing people's behaviour, and we all do not like change. We do not like to change because it is difficult and disruptive. But I submit that we have to make these moves, because if we see problems ahead and we see the possibility of a crisis, we have no choice but to change. It is the same as somebody who suffers a heart attack. If he does not change his lifestyle, he does not change his habits, then I think the chances of him enjoying a quality lifestyle will be seriously jeopardised. The question is, of course, whether we are facing a crisis now. We see many examples of cities in other countries which they do nothing or they do something but it is too late, and they are faced with gridlock. Major roads are seized up. People and goods do not move or move very slowly, if they do. So I submit, let us do something now. Let us not wait for a crisis because experience tells us that by then, it may be too late or the solution may be even more painful. I close this answer by reminding Members that our transport policy is not only about COEs, ERP and so on, painful though these may be. They are part and parcel of a total integrated package, a package which includes building of new roads, new expressways and the building of new MRT and LRT lines. It includes continual improvements in bus services, taxi services and so on. All these measures come together. They come in a package. They are inter-related. One does not work without the other.”
“I do not think he will be very pleased with me if I were to tell him that this is a scheme to collect revenue and I implement it in this way. Essentially, what we are saying, and what we are doing, is that we are giving money back to the motorists. And we are telling the motorists, "Please spend it in a way that you think is best for your own situation." And indeed urging them not to spend it on the ERP if they can help it. So let me repeat once again that this scheme is a scheme to manage congestion, and it is not to generate revenue. I now turn to Mr Goh Chee Wee's point about ERP for taxis. Yes, the ERP will affect all vehicles, including taxis when it is implemented. We will take into account the special circumstances of the taxis, in the sense that with radio charge, with radio phone bookings and so on, they will have to operate in a certain way. But I am reassured by the fact that the taxi companies have already taken some steps in this direction by changing their mode of operation, by introducing satellite booking systems and so on in order to help their taxi drivers to cope with the changes as and when it happens. But let me assure Members of this House that we will take the views of the various users into account. For example, in the case of taxis, we will phase in the ERP charges for taxis. Whether there will be concessionary charges or not, I think we will have to look at it in the overall context of the road tax revision for taxis. The same thing will apply for scheduled buses and also for commercial vehicles, because they do play an important role in our economy. What we will do is that we will phase in the ERP rates for these vehicles as well. This would help them to adjust to ERP.”
“The rest of them either changed their journey times before or after the RPS hours, or they switched to minor roads, or they went on to public transport, MRT and buses particularly. For example, the express buses that were introduced on the CTE showed an increase of about 40% in ridership just after they were introduced and today. So that is encouraging in that people are shifting. The increase in MRT ridership has not been as dramatic but it has also been steady. Other options that they have taken would be car pooling and perhaps some people would have abandoned their trips altogether. So it is encouraging to see these results, because this is exactly what the road pricing scheme has sought to achieve, not to move everybody away, but to move those people who would find it marginally not worth their while to pay the $2 to take the CTE, the ECP or whatever. It has, therefore, changed the travelling pattern of motorists,. It has encouraged them to take alternative forms of transport or, as I said, perhaps even not making that particular trip at that particular time. Another criticism that I have heard quite frequently is that this is another scheme for Government to generate revenue. Let me give the House some facts. When we extended the RPS to the CTE and the PIE in May this year, we gave away $36 million in road tax rebates. We expect to collect between $6 and $8 million in RPS fees. These are all annual figures. In other words, there is a revenue loss of about $28-$30 million a year. Let me say that if indeed this is a scheme to generate revenue, this is a very funny way of collecting revenue. The Minister for Finance is not here.”