Yeo Cheow Tong
Singapore
“Mdm Ho Geok Choo asked the Minister for Health in light of the recent report on fungal corneal infections (a) whether those who contracted the contact lens related fungal corneal infections will suffer permanent damage to their eyes; and (b) how long will his Ministry take to conclude its investigations into the causes of these contact le…”
“My Ministry performs a regulatory role and what we do is that we try to ensure that we have a conducive regulatory environment for the growth of this industry in Singapore. Let me tell him what we are doing in some areas.”
“Sir, on her two questions, whether we are satisfied that the school buses are collecting fares during the school holidays, as I mentioned just now, the school bus service is a contractual service between the parents and the service provider. It is therefore up to them to work out the terms and to abide by the terms.”
“Sir, on the first question, whether there is any abuse by owners of buses while using the 50% rebate, the answer is no, because LTA monitors very closely.”
“Sir, I have to repeat my answer. We are not responsible for regulating school buses and therefore will not be involved. SCHOOL BUSES (Installation of seat belts) 5. Assoc. Prof.”
“Ong Soh Khim asked the Minister for Community Development, Youth and Sports (a) if his Ministry will increase the cap of $10,000 per disabled person over their lifetime for the Assistive Technology Fund scheme; and (b) if not, whether there will be a flexibility to adjust the funding cap for this scheme based on the applicant's need, as j…”
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“There are many reasons why roads may need to be opened, for example, to lay additional utility supply because of new property developments in the area, emergency repairs to the utility services, upgrading of aged utility infrastructure, and so on. Some of these works are not easily planned or even foreseeable. I can assure him that LTA and the Committee will try to find ways for the coordination. Mr Yeo also talked about improving road signs. I agree with him that proper directional signs play an important role in minimising unnecessary traffic circulation, especially in the city area. The key is to have clear and well-positioned directional signs. They are usually placed near road intersections where motorists have to decide whether to turn right or turn left or go straight. More importantly, we need to avoid a proliferation of signs, as these will mar the landscape and confuse motorists. So I can assure him that LTA pays a lot of attention to having appropriate signs and to make sure that the signs are meaningful. If Mr Yeo has any feedback on places where signages can be improved, I will be happy to hear from him. Mr Yeo also said that we should explore alternative measures to keep the roads free-flowing before we introduce ERP. Let me assure him that this is already being done today. When there are congested roads, LTA does not go in and implement ERP straightaway. In fact, we have not implemented ERP for quite some time. This is because LTA will go in to analyse the situation and find if there are other ways to relieve the congestion first, and will only resort to ERP as the last measure. Mrs Lim Hwee Hua stated that minimum professionalism needs to prevail when devolving responsibilities to the community, and she asked what is our position.”
“He is therefore mistaken in claiming that the provision of such spaces is ad hoc and ill planned. In fact, LTA requires all developers to make provisions for adequate parking and loading/unloading facilities when they submit their project proposals for planning approval. In reviewing these proposals, LTA would ensure that the provisions are indeed sufficient so that the loading and unloading activities do not spill over onto the main roads and affect the traffic flow of the surrounding roads and affect the safety of the road-users. Sir, I can understand that the despatch riders and the delivery men will want to park as close to the entrance of the buildings as possible. But this is not always possible. Nonetheless, in such situations, the drivers and the despatch riders will still have to observe the road regulations. Otherwise, they will impose inconveniences on other road-users, or worse, break some road regulations. Of course, we can always ask the Traffic Police to increase the enforcement actions - I think this is what Mr Yeo Guat Kwang has also asked. But there is also a need for people to be more observant of road regulations. This is part and parcel of becoming a more civic and gracious society. Moving on to Mr Yeo Guat Kwang. Sir, the road works problem is a perennial problem and there is no easy solution. We have a Committee set up to coordinate the road openings. As far as possible, the road openings are timed to coincide with LTA's road construction and maintenance programme. But, it is not always possible to do so, given that Singapore is a highly urbanised city, with many of its utility services running below the roads.”
“Sir, one of our measures to achieve this, ie, keeping our roads congestion free, is through controlling the population of the vehicles in Singapore and through congestion pricing. With the proper measures in place to manage congestion, we will be able to allow our vehicle population to grow at a sustainable rate. This is currently set at 3% per annum. At this juncture, I am pleased to announce that the total COE quota for 2004 is 120,538. This is a 1.6% increase from last year's quota, with the quota for cars increasing by about 4%. LTA will be releasing the detailed breakdown of the 2004 quota later today. Let me now address the specific points raised by Mr Ong Kian Min. He spoke about the need to provide adequate parking spaces for parking, loading and unloading activities. He felt that today the provision of such spaces is ad hoc, ill-planned and unsystematic, especially in the CBD. In land-scarce Singapore, we all recognise that we need to ensure that our limited road space is used for the efficient movement of people and goods. Roadside parking facilities may serve the needs of motorists such as delivery men or despatch riders, who need to park and deliver something quickly. However, the provision of such facilities must be balanced against all conflicting demands. As such, on the main city roads, where traffic volume is high and the roads are already congested, kerbside parking is not allowed. But where the impact on traffic is manageable, and there is a need to increase the supply of parking facilities to meet the demand, URA and LTA have introduced roadside parking facilities, eg, along the minor roads in the CBD. This is very similar in almost all the big cities in the world.”
“But having said that, I am quite happy that the taxi companies are starting to innovate, for example, to address the shortage of taxis before midnight, CityCab recently adopted a different pricing strategy. It has implemented a staggered late-night surcharge in January, with a staggered surcharge starting from 11.30 pm and fully implemented at 1.00 am. I hope that the other taxi companies will also come up with innovative solutions to this and other challenges that they face. Sir, Mr Ang Mong Seng talked about the COE rebate. At the present moment, the rebate is given through a rebate certificate rather than cash. He asked why not give out in cash. Sir, let me explain the reasons for not granting the rebate in cash. As Members are aware, the COE allows vehicle owners to use their vehicles for 10 years. However, we do recognise that some owners may have to scrap or export their vehicles before the expiry of the COE. Therefore, as a concession, the Government has allowed owners to use the residual COE value to offset the upfront taxes payable for a new vehicle. We have also made the process for utilising the rebate as flexible as possible. For example, an owner can transfer the COE rebate to another person, say, a friend or relative, if he does not intend to use it. He can also combine the rebate certificates or split them up when utilising them. Sir, as such, the process is a simple and very flexible one, and the Government does not intend to change the rebate into a cash payment. Mr Ong Kian Min said that we emphasised too much on road congestion and we are not paying enough attention to looking after the people who are loading or unloading or parking their vehicles in the city. I think Mr Yeo Guat Kwang also touched on the need to keep our roads free flowing.”
“And I hope in the years ahead, we will see new players coming in, once the three new players have settled down. Sir, Mr Yatiman asked why not allow the small operators to come in and share the back-end costs, so that they can start with a smaller number of taxis. Sir, there is nothing to prevent them from joining together as aspiring entrepreneurs to join up together and pool their resources, rather than starting one on their own. In any case, Sir, we allow them a four-year period to invest in 400 taxis. So, it is not something that they are required to invest in upfront. Mr Chandra Mohan touched on the complexity of all the different charges for the taxi fares. The taxi fare in Singapore is not unique to Singapore. It is very similar to the taxi fare structure in other major cities like London, Hong Kong, New York and Sydney. This is because the surcharges are meant to cater to the varying situations over the 24-hour period in a normal day. Sir, since September 1998, taxi fares in Singapore have been fully de-regulated. And, as such, taxi companies are free to determine their own fare structures and pricing strategies to respond to the demand and the needs of the commuters. However, the taxi companies are required by PTC to provide sufficient information so that commuters can understand the fare structure and make informed choices. If Mr Chandra Mohan does not know what he is paying for, what he can do is to look at the fare information, which I understand is displayed very prominently in the back of the taxi and on the rear windscreen, as well as at the taxi stands. So you can see what you are paying for at that time of the day.”
“Sir, let me thank the Members who have spoken again. Let me start with the reply to Mr Ang Mong Seng. He asked for assistance for the taxi operators for the wheelchair-enabled taxis. Sir, today, there are already close to 100 wheelchair accessible taxis in Singapore. It shows that the lack of incentives before has not prevented the taxi companies from buying them. The good news I have for Mr Ang is that last year, we did come up with an incentive for the operators. As part of this incentive scheme, wheel lifts and associated installation costs are exempted from Additional Registration Fee (ARF) and excise duty. So what this means is that this will now help to lower the upfront cost of such taxis by some 20%. So it is quite a significant incentive and I hope that this will encourage the taxi operators to bring in additional taxis that are so fitted. 3.15 pm Sir, Mr Yatiman asked that we open up the taxi industry even more. The current policy is still too restrictive, too strict. Sir, when we liberalised the industry last year, we did consider the number of taxis that we should stipulate for the new operators. LTA did a study and found that in view of the high overheads related to the cost of the despatch system and the radiophone system that we need a certain minimum size. The calculation showed that 400 was already a very minimum number, and anything lower than that will not be viable at all. And I am glad that since we liberalised last year, the taxi landscape in Singapore has changed. Today, we have three new taxi companies, bringing the total number of players to seven. This shows that our objective of allowing greater competition in the taxi industry is working.”
“Sir, on the issue of allowing competition in bus services, Mr Ong may recall that two years ago, I had announced that PTC is prepared to allow feeder bus competition in HDB new towns. Unfortunately, up to now, no private bus operator has come forward to express its interest. Sir, however, despite this lack of response, we are still very keen on this idea and will continue looking for ways to introduce more competition in the provision of bus services. And since we are still pursuing the idea of enhancing bus competition, I think we will have to think seriously whether it will make sense for us to allow a merger of the current bus services, should the two operators come to us with this option. Sir, I think I have answered all the points made in this order.”
“Mr Ong spoke of the possibility of the SMRT and Delgro merging their bus and rail operations and asked whether, whilst he understands about the rail operation, we should agree to the merger of the bus operations. Sir, as pointed out by Mr Ong, the two public operators are public-listed companies. They are free to explore mergers, whether in bus or rail, if they think there are commercial benefits in doing so. At this point in time, let me correct the mistake made by Dr Chong. He said that I had talked about the merger of the two companies. And in fact, Mr Inderjit Singh, on Monday also in this House, said to the effect that it was not right for a Government Minister to direct the two transport operators to merge their rail operations. I think he was referring to me, of course. Sir, both Mr Inderjit Singh and Dr Chong are wrong, because I never directed them to do such a thing. What happened was that I was asked a supplementary question in this House in August last year, whether it would not have been better, for one operator to run all the rail lines in Singapore. This took place, I think Members would recall, during my answer to Mr Charles Chong's very famous question on Buangkok MRT station. Sir, in my reply, I explained the background as to why the NEL was given to a second operator. I also said that we cannot do anything to change the operators now, as both rail operators are listed companies. But my Ministry will not object should they decide to explore the option of merging their rail operations. So, at no time did I direct the two rail operators to merge the operations. Dr Chong asked what is the status. I would like to inform Dr Chong that neither my Ministry nor LTA has received any proposals from any of the two operators about this option.”
“Sir, I can understand the point made by Dr Chong that the commuters would prefer to be served by both buses and trains along the same corridor. It gives them the ability to choose between one or the other. However, such duplication of expensive resources is very wasteful and certainly not cost effective. It will only lead to a lose-lose situation for both the bus and rail operators, and ultimately, the commuters. This is because ridership must suffer for both operations that duplicate one another, and they will become less viable. The higher operating costs needed to run systems concurrently would eventually have to be passed on to the commuters in the form of higher fares. So, this is why we have to rationalise bus services each time a new rail line opens and this is to prevent or, at least, reduce unnecessary duplication. Sir, he was afraid also that by having the MRT operator running the bus routes, the monopoly would enable the train operator to over-rationalise and deprive commuters of bus services which may be very needed. Sir, I want to assure him that this is not so, because the rationalisation plan is independent of whether the same operator runs both the train and the bus services. In fact, the rationalisation plan is done by TransitLink which is an independent operator. And after that, it has to be submitted to PTC for approval. So there are plenty of safeguards to make sure that if it is a single operator, the single operator does not abuse its monopoly position. 2.30 pm Sir, he also asked about the merger of the two operators. Mr Ong Kian Min also touched on that, so I will combine the two answers together.”
“And in the meantime, we will continue to provide the residents in the areas under consideration with a good and well-proven system of the feeder bus network. Mr Chay asked me to give my views on the LRT system, whether they are really cost-effective and he asked also if we should be building new ones. Sir, let me first explain that the Government decided to build LRT systems that are available today to serve as feeder services because there are several notable, in actual fact, advantages connected to LRT systems. Firstly, it is a more efficient form of transport compared to buses in densely populated towns or areas with high activity levels. The train is also more reliable in its time schedules and, unlike buses, is not subject to delays from traffic congestion. In addition, the elevated train system frees up land which would otherwise have to be used to provide more road space. So, this allows for a better use of our limited land, especially in areas that are already very densely built up. However, as Mr Chay has rightly pointed out, the LRT projects also require heavy investments. And in that, it means that the Government has to subsidise, also very heavily, this mode of transport. Sir, for this reason, we will only proceed to build new lines, the LRT lines, when we are assured that they are viable, when there are positive cost benefits, and I think also, when we are sure that the location under consideration is suitable for introducing such a system. Dr Chong Weng Chiew asked that we give commuters a choice, that in this day and age, especially with our present state of development, commuters are entitled to have choices. And he also asked about the merger of the two transport operators.”
“For the bus operators, their security deposits of $2,000 per bus route can also be forfeited. I am happy to inform Mr Chay that the audit of the operators' performance in the year 2003, last year, showed that they have generally been able to meet the required standards, but we will continue to monitor them to make sure. Sir, let me now reply to the points made by Mr Ong Kian Min on the rail projects. Sir, he asked about the three new lines, which I have replied already, and he also stressed that we should not build new rail lines to new areas under development in case there are changes to the development schedule which will make the new line non-viable. Circumstances do change, as he has pointed out. Sir, as I had pointed out to Mr Yeo Guat Kwang, the Government will only embark on a new rail line after it is fully satisfied that the new line is really needed, and that it will be financially viable. Mr Ong is correct in stating that the rail lines were previously built based on projected demand and ridership. Sir, that was not a problem when we first built the North-South and the East-West lines, because these two lines serve areas that were already largely developed and well-populated. Unfortunately, as you have pointed out, rail projects are major developments that can stretch eight to 10 years from the approval stage to the completion stage and during the long construction period, unforeseen developments may occur and, as we have seen with the NEL, do occur. And because of our experience with the NEL system, we are now proceeding very carefully with future rail projects. So, I can assure Mr Ong that we will build new lines in the future only when we are satisfied that they will be viable.”
“Today, LTA imposes service standards on taxi and rail operators, and the PTC specifies service standards for the bus operators. Sir, the KPIs (Key Performance Indicators) are very detailed and lengthy. I will highlight the philosophy and the approach taken by LTA and PTC instead. Generally, these standards cover the areas of service availability, safety and customer satisfaction. For example, the rail operators have to comply with schedule adherence and service availability indicators, while the bus operators have to ensure that their services meet stipulated headways during the peak periods. When the taxi industry was deregulated last year, LTA also introduced a set of Quality of Service (QoS) standards to ensure minimum service levels for taxis. These relate to service factors, such as safety and responsiveness to radiophone bookings. Sir, as our public transport industry evolves, our regulators will review the standards regularly to ensure that they remain relevant to our needs. For instance, PTC is now reviewing and updating the bus service standards which were established in 1994. And I can assure Members that when conducting such reviews, we will continue to balance the commuters' expectations of service with the cost implications of imposing high standards on the operators. Sir, Mr Chay also asked about compliance with the standards and what happens if they do not comply. To ensure compliance with the standards, LTA and PTC do conduct regular audits on the operators, including ad-hoc on-site audits. If the operators are unable to comply with the required standards, they may face financial penalties of up to $100,000 for the taxi operators, and up to $1 million for rail operators.”
“And as I mentioned just now, the average fares have gone up very marginally over the last 10 years. This means that, actually, with regard to the lowest 20th percentile, the impact on them has also been that the fares have become a lot more affordable. Sir, nevertheless, we do recognise that there will be some people who may genuinely face financial difficulties and do need help. I think the Government's approach is to target the financial assistance at those who really need it, through the various schemes implemented either at the Government or community levels. And such assistance is normally given in a holistic manner, with counselling given on how to help them manage their finances. I think the counsellors would also try to match them with a job nearer their home, if they find that that particular person who is appealing for help is spending too much money travelling to and from work. Nonetheless, some short-term assistance with the cost of transport is available for those in financial need. One example is the Public Transport Fund set up recently by NTUC and the CDCs, with financial contributions from the transport operators. If Mr Wee is aware of people who require financial support, I would urge him to refer them to the relevant Government and community organisations for assistance. Sir, Mr Yatiman Yusof asked about the KPIs for the public transport operators because of the importance of the public transport system. Sir, I agree with Mr Yatiman Yusof that the level of public transport service contributes greatly towards enhancing the mobility and quality of life in Singapore. That is why we have put in place minimum standards to ensure that our public transport service operators are able to meet adequate service levels.”
“What LTA strives to achieve is to ensure that the bus operators are able to have an acceptable level of service, safety and operational efficiency. The aim is to keep the cost of public transport low, while maintaining safety standards and service quality. I would like to assure Mr Yeo that we keep in close touch with the operators and I can assure him that if the standards are too onerous, they will not hesitate to make sure that we know about it. Sir, let me move on to Mr Wee Siew Kim first, because his cuts are pretty much similar to the points brought up by Mr Yeo. Sir, Mr Wee Siew Kim asked about measures to help address the rising cost of public transport and whether the Government could perhaps help to make the transport services more affordable for the lower income group, in a way implying that we could find a way to subsidise them. Sir, as I have replied to Mr Yeo, the perception that transport costs have been going up and going up rapidly, and therefore becoming unaffordable, is a very much misplaced one. Fares have gone up much less than the average wage increases over the last 17 years. As a result, public transport expenditure, as a proportion of household expenditure, has decreased from 5.1% in 1988 to 4% in 1998. So from 5% in 1988, it has gone down to 4% in 1998, over a 10-year period. I think he also asked about the lower 20th percentile, those people with household incomes of about $1,300 to $1,400. Sir, I do not have the actual figures to compare between that 10-year period, but what I have is that in 1988, the household income was $642 for the 20th percentile. And 10 years later, in 1998, the 20th percentile income had gone up, and had more than doubled to $1,368.”
“For example, as part of the relief package that we announced last year, LTA extended the statutory lifespan of buses by two years, from 15 to 17 years. So, this had helped the operators lower costs through savings in depreciation and in terms of the capital cost of having to buy new buses. Sir, many people appear to have the perception that public transport costs have gone up significantly over the years. It is therefore important for me to assure Members of the House as well as the public that this is not so. Between 1987 and 2002, average wages went up by 136%. But for an average 8-kilometre trip, bus fares only went up by 14%, from 90 cents to $1.03 for an 8-km ride and train fares by 30%, from 80 cents to $1.04. As such, we should commend the operators for having done a good job of providing a service that is even more affordable today, compared to 17 years ago, relative to average wages. I think Members would also be happy to know that SBS Transit has indicated that it would not be applying for a fare adjustment this year and I think this is indeed good news for commuters. So moving forward, we will continue to work with the operators to help them lower costs. Mr Yeo had asked that the bus operators be allowed to retain the rental revenues from the bus interchanges. Sir, this is not allowed at the moment as the bus interchanges are built by the Government and leased to the operators for a nominal fee of $12 a year. Notwithstanding this, I am happy to inform Mr Yeo that we are currently reviewing this policy and I hope to get back to him shortly. With regard to our standards, I would also like to reassure Mr Yeo that LTA has not imposed onerous standards and requirements on the operators.”
“As such, we will only proceed with a new rail line if it is financially viable. Based on LTA's current construction programme, our rail network will already grow by some 50% from today's 122 kilometres to 172 kilometres in the year 2010, when the Circle Line is completed. Sir, the Circle Line will significantly enhance the connectivity of our rail network, and it will allow commuters to achieve far greater savings in travel times. We are also in the final stages of planning for an extension of the East-West Line into the Jurong Industrial Estate. This would reduce travel time for workers in the Jurong and Tuas Industrial Estates, and reduce the heavy congestion at the Boon Lay MRT station and the bus interchange there. Sir, Mr Yeo asked about the status of the three new lines that we had talked about - the Bukit Timah Line (BTL), the Jurong Region Line (JRL) and the Eastern Region Line (ERL). Sir, LTA is currently carrying out feasibility studies on these three lines. The implementation schedule will depend on their financial viability, and whether the current public transport modes can cater to the prevailing demand. If they are able to cater to the prevailing demand, then there is no need for us to sink billions of dollars into building the new lines. Sir, being heavy investments, the development schedule will also depend on the Government's financial situation. So while I agree with Mr Yeo's sentiments about the social benefits of a comprehensive rail system, unfortunately, we cannot throw fiscal prudence to the wind. 2.15 pm Sir, Mr Yeo also asked about measures taken to moderate public transport costs. Sir, I would like to assure him that my Ministry certainly shares his concern and is mindful of the need to keep statutory costs of public transport services low.”
“This is much lower than the cap of 15% allowed under the CPI+X formula and certainly much lower than the 20% increase in average wages over the last six years. Sir, although the CPI+X formula has worked out well, I agree with Mr Chay that it is timely to review the fare review framework, and to see how it can be further improved. And I think this is especially so, because the current value of X in the formula will expire next year. Sir, I am therefore very happy to inform this House that I intend to appoint Mr Chay, as the Chairman of the GPC for Transport, to form a Committee to undertake this review. The Review Committee will study and propose improvements to the framework for the annual fare review exercise, including the CPI+X formula. Sir, the outcome of the review should be a framework that continues to achieve a good balance between affordable fares and sustainable public transport operations. I look forward to the Committee completing its work within a year. My Ministry and the PTC will support the secretariat and provide other support for the work of the Committee. I hope Mr Chay will be kind enough to undertake this very challenging assignment. Mr Yeo Guat Kwang asked about the expansion plans for our rail network and a few other matters. Sir, one of our key strategies to achieving an efficient land transport system is to develop a comprehensive Rapid Transit System (RTS) as the backbone of our public transport system. To achieve this, LTA has developed an RTS Master Plan to provide comprehensive coverage of key parts of Singapore, including those parts which Mr Yeo pointed out are not covered yet. Sir, however, the rail projects involve very heavy capital investments. We therefore have to ensure that taxpayers' money is spent prudently.”
“First let me thank the Members who have spoken on the land transport system in Singapore. Sir, let me start with the points made by Mr Chay Wai Chuen. Sir, first let me thank Mr Chay for having raised an issue that is close to the hearts of most Singaporeans. He was talking about the fare revisions and the role of the PTC. Sir, as all of you know, public transport fare revisions, no matter how small, never fail to ignite extensive and emotionally-charged public debates. As Mr Chay pointed out, the Public Transport Council (PTC) is responsible for assessing fare revision applications by the public transport operators. He called it a very thankless task, but actually it is a very delicate balance between safeguarding commuter interests and ensuring the financial viability of the public transport operators. It is a difficult and very unenviable task, but it is a very important one. And I am indeed glad that the PTC members have carried out this very difficult task in an outstanding manner. Sir, the PTC is guarded by the CPI+X formula, as outlined by Mr Chay. The formula sets the cap for fare increases each year and was first implemented from 1998. As Mr Chay pointed out, the value of X takes into consideration cost increases and discounts for productivity. I think this latter part is very important because, if the operators do not gain from the productivity improvements, then really there is no reason for them to look into improving their productivity. Sir, I am glad that the PTC has indeed safeguarded the commuters' interest very well under the CPI+X framework. Since the adoption of the formula six years ago, public transport fares have increased by a total of about 5%.”
“Finally, let me add that we should not judge all taxi drivers based on the errant behaviour of a few. There have been many reported instances of taxi drivers who have gone the extra mile to provide good service to their commuters. One example, which was published on the Forum page (19th December 2003), is of a taxi driver who drove all the way from Jurong to Pasir Ris to return a purse and a bag of groceries that a passenger had earlier left behind in his taxi. Many other grateful commuters have similarly written letters to the Forum page to commend taxi drivers for their service. I would like to urge commuters to come forward to compliment taxi drivers where this is due, as this is yet another way to spur service improvement in the sector. FOREIGN WORKERS' COMPLAINTS 15. Ms Braema Mathiaparanam asked the Acting Minister for Manpower, in the last two years, (a) how many (i) foreign construction workers and (ii) foreign domestic workers have filed claims against their employers for non-payment of wages; (b) how many of these workers were successful in their claims; (c) what was the total amount owing to the workers; (d) how many dedicated Ministry officers are there to handle wage complaints pertaining to foreign workers; and (e) what steps has the Ministry put in place to protect workers against such abuse by employers.”
“The Member has raised an issue which is close to the hearts of many taxi commuters. I can assure Members that taxi service quality is also a key concern of my Ministry and the Land Transport Authority (LTA). Today, we have some 40,000 taxi drivers driving over 19,000 taxis on our roads. I am pleased to say that on the whole, our taxi drivers have upheld excellent service standards. Some commuters have complained that taxi drivers are abusing the "On Call" signs to pick and choose fares. To put this matter in perspective, let me explain that 62% of our taxis are fitted with automatic "On Call" signs. This means that the "On Call" signs of these taxis are controlled by a central dispatch system, and cannot be manipulated by taxi drivers themselves. As for the rest, we have strict measures to curb such possible errant behaviour by drivers. Members would recall that last June, LTA put in place the Vocational Licence Points System (VLPS) to regulate the conduct of taxi drivers. Under the VLPS, the penalties (ie, fines and demerit points) for various offences are spelt out in a transparent manner, together with guidelines on suspending or revoking vocational licences arising from the offences. Abusing the "On Call" sign to refuse a customer is an offence that LTA views seriously. Under the VLPS, taxi drivers who refuse to pick up customers without a valid reason will be fined $100, and given 3 demerit points. A taxi driver's vocational licence will be suspended once he accumulates 6 or more demerit points. I would also like to assure the Member that LTA will continue to monitor the Quality of Service (QoS) performance of the taxi companies closely, under the Taxi Operator Licensing regime, to ensure high standards of service to commuters.”
“Ms Braema Mathiaparanam asked the Acting Minister for Health (a) what is the number of children with HIV in Singapore; and (b) whether his Ministry will consider subsidising the Anti-Retroviral (ARV) drug for these children.”
“The Expressway Monitoring and Advisory System (EMAS) has not been switched off. What is EMAS? It is an incident management system that monitors and manages traffic along the expressways. Its job is to detect traffic problems early, provide quick recovery service for motorists in distress, and alert motorists to abnormal or dangerous traffic conditions ahead. Traffic Police, the media and recovery teams are also alerted to any incidents. Early detection and quick reaction to accidents and breakdowns minimise congestion and danger to road users. The operators at the control centre rely on a whole network of cameras located along the expressways to detect incidents as soon as they occur. They then despatch recovery crews to the site to assist the motorists and clear the incidents. Another function of EMAS is to provide notification to motorists about incidents on the expressways. Such information is displayed on the electronic signs along the expressways and at roads leading to the expressways. There are also electronic signs at the entrances to expressways, displaying information on how long it would take to travel to various destinations. It costs LTA about $5 million each year in communications costs to display information on the EMAS signboards. Over the years, LTA has received feedback that many motorists did not find the routine display of travel time very useful, especially when there was no incident on the expressways. Hence, to reduce costs, LTA decided to discontinue the routine display of travel time. This is estimated to save LTA about $2.4 million in communications costs. However, the signboards will continue to display traffic incident messages whenever there are traffic obstructions, accidents or other incidents along the expressways. CHILDREN WITH HIV 21.”
“Apart from advisories to employers on the relevant provisions of the Employment Act, they are also asked to attend courses on the Employment Act conducted by the Ministry. b) Employers who continue to flout the law would be barred from employing foreign workers. This measure is an effective way to deter such employers. c) My Ministry also conducts frequent inspections on companies to stamp out any violations of employment terms and conditions prescribed in the Employment Act.”
“Of the remaining 65% (7,368) of the workers, about 60% (4,443) of their claims were successfully resolved by the Ministry and a total of $7.1 million was recovered for the workers. Another 10% (728) of the 7,368 workers had referred their claims for adjudication. The remaining 30% (2,197) of the workers encountered difficulty in securing their payments as their employers were facing cashflow problems or were not successful in their claims as their employers had ceased operations or had become insolvent. The majority of employers who failed to pay their workers on time heeded the Ministry's advice and made the necessary changes to comply with the law. The Ministry also issues warnings to such employers. If the violation of the Employment Act is serious, the Ministry will consider taking prosecution action against the employers. But employers who violate the law belong to a small minority. Last year, no company was prosecuted for violation of the Employment Act. Warnings to 279 employers were issued. In 2002, the Ministry prosecuted two companies for non-payment of salaries to their employees. The Court meted out fines against one company while the other had the charge compounded. To ensure that the provisions of the Employment Act are complied with, the Ministry adopts the following measures: a) Educational and promotional programmes to bring about greater awareness of the law and penalising employers who flout the law to deter other offenders. Generally, employers, especially in the larger companies, comply with the law. Employers who have problems complying with the law are mainly the small and medium-sized companies.”
“I can assure Mdm Ho that all these will be well looked after and that the safety at Changi will definitely be maintained at the highest possible level. ABUSE OF WORKERS AND VIOLATION OF EMPLOYMENT ACT (Action against employers) 6. Mdm Halimah Yacob asked the Acting Minister for Manpower in view of recent media reports of abuse of workers by some employers, (a) how many workers have filed claims against employers for failure to pay wages or other benefits; (b) how many of these claims were successful and what was the total amount recovered; (c) how many employers have been prosecuted for violations of the Employment Act; and (d) what steps have been taken by the Ministry to enforce the labour laws and prevent abuses and violations. The Parliamentary Secretary to the Acting Minister for Manpower (Mr Hawazi Daipi) (for the Acting Minister for Manpower): Sir, in 2003, a total of 10,232 local and foreign non-unionised workers sought the assistance of the Ministry's Labour Relations Department and filed claims/complaints against their employers for failure to pay wages and other benefits. None were received in the case of unionised workers. This was presumably due to effective representation on their behalf by their unions. In the non-unionised sector, a total of 11,321 workers, including those who lodged their claims in 2002, had their cases concluded in 2003. Among these workers, 17% (1,875) of the workers had no valid claims and another 18% (2,078) did not pursue their claims as they were able to reach a private settlement with their employers following consultation with the Ministry, or withdrew their cases for various reasons such as their claims not being provided in their employment contracts or covered by the Employment Act.”
“Sir, in preparation for the appointment of a third operator, CAAS actually went round the world, talking to all the major international players, to alert them to what we are doing and to interest them in bidding for that licence. Mdm Ho Geok Choo: Sir, the apparent effect of having three operators is that the third ground handling company will also have its own fleet of equipment. With an increase in the operating equipment and vehicular traffic at Changi, will it not become more hazardous for staff operating at the airport? What measures are being considered to ensure a high level of safety?”
“But, so far, we have tried not to increase our costs to the passengers.”
“Sir, if Mr Chia had listened to my answer just now, I did mention that we have embarked on significant cost reductions for the airlines. But, in the first place, Changi Airport is already very cost-effective. Today, Changi Airport is the second least expensive airport in the whole of Asia. So we are already very cost-effective, but we are finding more ways to be even more cost-effective. One of the ways, as I have said, is to make the ground handling market in Changi more competitive. And if the third operator comes in and is able to stimulate the market and help to reduce ground handling cost, it will make Changi Airport even more attractive. Mr Chia also asked whether we are spending too much money on enhancements of the airport and whether it will end up costing passengers more. Sir, the situation with regard to the airport facilities is a very competitive one. T1 was built in 1980. T2 was completed in 1990. Between 1990 and now, I think Mr Chia would have realised that many new airports have opened and they are all very modern, very advanced and very attractive. If Changi Airport does not take steps to continue upgrading itself and keep pace with the competition, we are going to be left far behind. So we have no choice but to continue making sure that our facilities and services are tip-top so that passengers would choose to fly through Changi Airport if they have a choice of other airports to fly through. Will the cost be passed on to the passengers? Sir, as I have mentioned just now, our costs are already kept very low. We will try not to pass on any upgrading cost, but of course, when operating costs are increased, because of manpower cost increase and technology, we may have to pass some of that to the passengers.”
“Last year, we introduced a $210 million Air Hub Development Fund and the SARS relief package which include landing fee and rental rebates to help the airlines through the difficult times. There was also the post-SARS Air Traffic Development Scheme to incentivise the recovery of passenger traffic at Changi Airport. This year, we have put in place a new $40 million Growth Incentive Scheme (GIS) for airlines. This new scheme will operate from 1st January this year to 31st December next year. It will reward each airline based on its passenger growth, and will be on top of the other incentive schemes or rebates. Finally, as announced recently, we will be introducing a third ground handling company at Changi Airport. The enhanced competition will improve ground handling services at Changi, and make them more price-competitive. I have just described some of the measures to maintain Changi Airport's status as a leading air hub in the face of the changing, more challenging and competitive environment. These measures are dynamic, and we will continue to evolve them to meet changing circumstances.”
“There will also be better integration of the shops, F&B outlets and new passenger facilities. All these will give passengers a new and even more interesting and exciting "Changi Experience". The new T3, with its outstanding architectural and interior design, will also provide passengers a brand-new and enjoyable experience in air travel. Sir, we will continue with our efforts to attract and anchor airlines at Changi Airport. One key factor is our connectivity. Strengthening our connectivity will attract even more airlines to fly here. In the past year alone, Changi welcomed six new airlines, bringing the total number of Changi's airline partners to 69. Our international network has also grown to 150 cities. By facilitating more airlines to build their network to and through Changi Airport, we will also strengthen our status as a regional air hub. We are also looking at ways to address the needs of low cost carriers (LCCs) at Changi Airport. The success of LCCs hinges critically on their ability to keep their costs low. This, in turn, enables them to keep their air fares low. They do so by doing away with frills. LCCs are a phenomenal success in the US and Europe, and this phenomenon has now arrived in Asia. At home, Valuair and Tiger Airways expect to be flying later this year. To maintain Singapore's position as a regional air hub, we will need to attract not only more of the traditional full service airlines but also the LCCs. CAAS is now studying the feasibility of building a LCC terminal at Changi Airport that will meet the operational requirements of these airlines. Sir, our efforts to improve Changi's competitiveness focus both on reducing costs and incentivising traffic growth.”
“Mr Speaker, Sir, as I informed hon. Members late last year, my Ministry's goal is to anchor our existing airline partners here, attract new airlines to use Changi Airport, and position Singapore for the long term. These fundamentals have not changed. Let me describe some of the key measures to achieve these objectives. Changi Airport has to maintain and even improve upon its unique "Changi Experience" to its passengers and airlines. Passengers using Changi enjoy speedy immigration and other processes, a lively and bustling shopping mall, friendly service, a wide range of passenger facilities and first-rate infrastructure. Surveys have shown that passengers do value this very pleasant experience. To continue to enhance this "Changi Experience", we will continue to innovate and improve our facilities and services. Terminal 2 (T2), which opened in 1990, is now undergoing its first major upgrading at a cost of some $240 million. The upgrading works will be completed by the end of next year. The construction of Terminal 3 (T3) is on schedule. When completed in 2008 at a cost of $1.75 billion, T3 will provide capacity for 20 million additional passengers in an exciting setting. Plans are also underway for the major upgrading of T1, to revitalise it and enhance the range of services available there. We expect to begin upgrading works at the end of 2005, and to complete them in 2008. The upgrading of T1 and T2 will rejuvenate these buildings and give them a modern, fresh look with its own individual distinctive character. In addition, the current retail areas will be enlarged and re-configured to offer passengers an even wider range of shops and merchandise. They will be given more interesting and appealing shopfronts.”
“The intention of having two rail operators was to provide a basis for comparison and benchmarking, and in so doing, help to spur service improvements between the operators. This concept also applies to our bus industry today. However, if the two rail operators feel that there is a strong commercial case to transfer the North-East Line (NEL), LTA is prepared to study their proposal with an open mind. The decision on the transfer of NEL is one that will have to be made by the two operators based on their own business considerations, and the Government does not intend to get involved in the process, should the two companies decide to hold talks to explore this possibility. On the Government's part, our role is to ensure that commuters' interests are safeguarded in the process. HOUSING AND DEVELOPMENT BOARD FLAT MORTGAGES 22. Mr Ong Ah Heng asked the Minister for National Development how many Housing and Development Board flats, if any, have been returned to the Board by households unable to pay their mortgages in the last 12 months.”
“The Land Transport Authority (LTA) has not received any proposals for a merger from the operators. However, if there is a proposal, it will be studied by the LTA. This is because the regulation of the Rapid Transit Systems (RTS) industry is governed by the RTS Act, and executed by the LTA. Under this framework, LTA is responsible for the licensing of the operators of the RTS lines and for regulating their operations. Such a framework, where the power to regulate is vested in an appointed authority through legislation, is no different from that of other regulatory functions undertaken by the Government and the statutory boards. Hence, the consideration of proposals by RTS operators to transfer RTS lines is a regulatory function and would not be raised in Parliament for approval. However, Members can be assured that in deciding on such applications, LTA and the Government will take into consideration the interests of both the industry and commuters. Members may of course raise the matter in Parliament through a Parliamentary Question. APPENDICES Section Name: BILLS Title: PLANNING (AMENDMENT) BILL Filename : Planning (Amendment) Bill - Appendix MP Name: The Minister for National Development (Mr Mah Bow Tan)”
“Sir, where does the money to build roads that Mr Chia travel come from? It is from taxpayers and from the other revenues that LTA raises. The money goes to paying for the building and repairing of roads, the street lights that we get from dusk to dawn, the building of the MRT system. That is where the money the LTA gets goes into. It does not go into anybody's pocket. Eventually, it goes to better the life of Singaporeans by providing them with a very good land transport infrastructure. CLARIFICATION BY MINISTER FOR NATIONAL DEVELOPMENT”
“Sir, I think any analyst looking at the profits of the two transport operators will tell us that their profits are not astronomical. In fact, if we look at their return on capital applied, we will find that the return on capital is actually not high at all. In fact, it is very low.”
“Sir, as I have said just now, in fact, we have done a lot to ensure that the transport cost over the years has been kept under control. And as I mentioned just now, wages increased by 140%, bus fares increased by 14% and MRT fares only increased by 30%. So, we have done a very good job of ensuring that the fare increases are far below the wage increases. Yes, the Government is concerned about the impact of the CPF cut. But, as we have mentioned, the CPF cut is to ensure that we are able to restructure the economy and help create jobs. This is the best way for the Government to help the people. In terms of support, yes, the Government is looking into ways to provide additional support to the people. And if Mr Chia is patient, he will get news of this later on.”
“Let me assure Members that the Government will continue to review measures to help companies reduce their overall costs. In fact, one such measure will be announced by the DPM shortly.”
“Sir, the Government already heavily subsidises public transport by building and paying for the infrastructure, such as MRT stations and lines, bus interchanges and bus stops. For instance, the Government has spent over $10 billion to put in place the current MRT infrastructure. Without such subsidies, public transport fares would have to be much higher than what they are today. However, we do not subsidise the day-to-day operation of public transport services. This is to instil prudence, financial discipline and efficiency in the operators. With over one billion trips made on public transport every year, it would cost taxpayers more than $100 million a year, if the Government were to subsidise fares by a mere 10 cents per trip. This is not sustainable. Besides, not every commuter requires this subsidy. It is better that we directly help those who are in real need through the public assistance scheme and other community financial support programmes. The Government, the Public Transport Council and the transport operators are all aware that public transport fares need to be kept affordable, particularly during tough times. This is why there was no across-the-board fare revision this year. Also, arising from the Public Transport Council's efforts to moderate fares over the last 16 years since the Council's formation, overall fare increases have lagged significantly behind wage increases. Over the 15-year period from 1987 to the end of last year, fares for an 8 km trip on the bus increased by 14% (from 90 cents to $1.03 cents) while the same distance trip on the train increased by 30% (from 80 cents to $1.04 cents). In comparison, wages increased by almost 140% over the same period.”
“Sir, I do not know what he is talking about, because Paya Lebar Airport is not meant to be a civilian airport. We are in discussions with airlines that are interested in operating through Singapore. As I mentioned just now, Changi Airport serves over 60 airlines, and they have operated here very profitably. If the budget airlines are interested in operating here, I am sure they will find Singapore equally profitable for them. HDB RENTAL FLATS 6. Dr Mohamad Maliki bin Osman asked the Minister for National Development (a) what is the number of one, two and three-room rental flats currently available; (b) how many appeals have been received by the Housing and Development Board (HDB) from single mothers with custody of children who have been barred from renting a flat from HDB arising from a sale of their flats due to divorce and how many of these appeals have been successful; (c) whether HDB will consider reviewing the income ceiling for eligibility for rental flats to take into consideration the total number of people in the household, such as the per capita income instead of a generic household income ceiling of $800; and (d) whether HDB periodically reviews the financial situation of tenants such that those whose incomes have improved significantly can be encouraged to purchase flats, thus making more rental flats available for those more deserving.”
“Sir, as I explained just now, if the passenger load is here, airlines will want to operate through Singapore. Mr Ravindran mentioned about low-cost airlines wanting to hub here. If he knows which of these airlines, please let us know and we will definitely reach out to them.”
“Sir, the CAAS engages in close consultation with all their airline partners. From these consultations, they get a better understanding of what is needed by not just the airlines but the travel industry as well. So, by having all these dialogue sessions, we are able to formulate programmes to address areas where further improvements are needed. And I think that is how Changi Airport has managed to achieve continual progress, and we will continue to do that.”
“Under the scheme, we have launched a number of initiatives targeted at our industry partners which will further anchor Changi's position as the premier regional air hub. For example, CAAS, the Singapore Tourism Board and various agencies are collaborating with airlines to further stimulate demand for air travel to, through and from Singapore. Sir, cost competitiveness is another relevant factor. We will keep our costs competitive by benchmarking internationally and regionally. Where the situation demands it, we have not hesitated to step in early. For example, CAAS was one of the first to introduce a S$45 million SARS relief package and, subsequently, a S$10 million air traffic development scheme. Both schemes help the industry to lower their operating costs. We will continue to look at our cost structure to ensure that our airline partners find it profitable to operate at Changi. We have also developed the Airport Logistics Park, or ALPS. Located strategically in Changi's Free Trade Zone, ALPS leverages on the excellent connectivity and superior handling efficiency of Changi Airport. This enables the logistics companies to enjoy rapid turnaround with minimal customs formalities thereby strengthening our position as a leading air logistics hub. In preparation for the longer term, I have tasked my Ministry to look at how we can further develop Singapore as an International Aviation Centre. Working with other agencies, our vision is to create a vibrant cluster of aviation and aerospace companies and activities. This will then provide another engine of growth for our aviation sector. I can therefore assure Members that my Ministry and the CAAS will proactively ensure that Changi retains its competitive position in the years ahead.”
“This allows them to fly into the selected hub airport and distribute their passengers through other airlines to the final destination in the region. They also look for an airport that their passengers will feel comfortable and happy transiting or transferring through. In terms of connectivity, Changi Airport ranks very high. Today, Changi Airport serves 63 airlines and is connected to 137 airports in the region and throughout the world. We will continue our efforts to increase Changi's connectivity, both in terms of attracting new airlines as well as actively working with them to serve more destinations. In terms of passenger comfort, Changi Airport enjoys significant competitive advantage through state-of-the-art infrastructure that is managed efficiently and effectively. Passengers using Changi find the speedy clearance, the shopping mall environment, the friendly service and the various passenger facilities provided a very pleasant experience. Many contrast this with the experience in other airports. We therefore coined the term "the Changi Experience" to describe our airport. Our lead in terms of comfort and service level, however, has been narrowed in recent years with the building of newer regional airports. We must therefore continue to upgrade our facilities, raise productivity, improve operations and enhance our customer orientation. As our competitors catch up, we have to learn from them as well. The Changi Experience is a unique one and we must continually revitalise and enhance it. To ensure that Changi remains ahead of our competitors, we have set up a 3-year S$210 million Air Hub Development Fund in January this year.”
“Sir, as I had informed Members late last year, my Ministry had reviewed and refined Changi Airport's competitive strategy. Our goal is to anchor our airline partners here, attract more airlines to use Changi Airport and position Singapore for the long haul. First, let me stress to Members that an airport does not exist purely on its own merits. What do I mean by this? Let me illustrate. If tomorrow, we are given permission to build an equivalent of a Changi Airport at the South Pole and we offer airlines all the airport services free of charge, can that airport automatically become a hub airport? I think the answer is obviously no. Airports succeed only when there is enough passenger demand in the locality that the airport is located. And airlines will always fly to airports where there are passengers to be served. Changi Airport has grown over the years because Singapore is a tourism centre and a regional business hub. The large number of MNCs located here, the significant number of Singapore businessmen and professionals who travel regularly to serve their regional customers, the many Singaporeans who travel abroad each year on holiday and the seven million tourists we attract every year, all add up to a huge base load of air travellers. As long as the base load is here, airlines will continue to serve us regardless of competition from other airports. The challenge is how to remain as a key hub airport for the region. Here, connectivity and quality of the airport are vital factors. International airlines that serve the region in a limited way will look for an airport that has a good base load and good connectivity to the key cities and attractions in the region.”
“Malaysia has announced plans to replace half the Causeway with a bridge. The bridge will allow only small barges to connect Pasir Gudang port to Port of Tanjung Pelepas. However, it will still take slightly longer to sail from Pasir Gudang port to Port of Tanjung Pelepas via the Johor Strait, as compared to sailing to PSA. Hence, the impact of the new bridge on PSA is not expected to be significant. Shipping lines that ship containers out of Pasir Gudang through PSA, instead of Port of Tanjung Pelepas, do so in order to enjoy PSA's excellent connectivity. Some 200 shipping lines connect PSA to 600 ports in 120 countries. PSA will maintain and expand upon this superior connectivity to ensure the continued competitiveness of our port. HOME OWNERSHIP BY SINGLES 2. Ms Braema Mathiaparanam asked the Minister for National Development (a) what is the number of homes owned by singles and (b) if he will give a profile of these home-owners by (i) age (ii) gender (iii) status (singles, divorced, widowed) and (iv) occupations.”
“The NEL ridership today is about 160,000 on the average. That means we have moved 160,000 people from largely buses to the NEL. How many buses have been removed from the roads? From the statistics, about a total of 150 buses had been saved. Has that made the overall operation more economic? I think, yes. The fact that they are able to save 150 buses means that they have been able to keep the deficit within control. If they are to duplicate both the NEL system and keep the bus routes, then I think the deficit would have been much, much greater. 3.00 pm”
“I think we have to collect the money from Mr Inderjit Singh. Just because we have already built the system and it is a sunk cost, it does not mean that the Government should now put more money, sink more money in and throw more money away. SBS has taken on the job of running the NEL. Yes, they are going to be making losses. Yes, they have to cross-subsidise the losses from the more profitable operations, which are really the bus and the taxi operations. Should we subsidise them? The answer is no. They came in on a willing basis. They had done their calculations. They may have made a bit of a mistake in computing how much they are going to lose, but it is something they have to live with as a listed company.”
“Now that we have two listed companies running the two lines, we leave it to the two companies to decide as to whether it should be operated by one or two companies.”
“Sir, as I mentioned in my initial answer, the NEL is viable over the medium to long term. Today, it is running a deficit because the developments in the north-eastern part have been a lot slower than originally projected when the decision was made to proceed with NEL. As explained by Minister Mah, because of the slowdown in demand for flats, the building programmes for Sengkang and Punggol have had to be scaled back quite significantly. In fact anyone who visits Punggol and Sengkang will see huge plots of land that have been cleared obviously for very quick startup of building but which has had to be held back because of the slowdown in demand. So, if the demand had taken place or had developed as originally anticipated in the early 1990s, then the NEL would have been viable fairly quickly. As to why SBS took on the job of running NEL, obviously it took on the job because it was looking more at the medium to long term. In the initial stages, it may have run a loss as with any new system, but over the long term it is going to be profitable. On hindsight, should we have allowed for only one operator instead of two? Sir, when the policy was made to introduce a second operator, it was felt that it would give us a chance to compare the two operators and from the two separate operations, perhaps to be able to get ideas on where improvements can be made to the operations. This way, whilst they were not competing directly in terms of serving the same area, they could compete in terms of how to better manage each of their lines, and from the competition we could then perhaps share the lessons learned. I think that philosophy is still valid.”
“Sir, for the bus system, PTC is responsible for both the routes and the fares. For the train, it is a little bit more complicated. For the train, the opening of stations is under the control of the regulator which, in this case, is LTA. PTC is only responsible for the fares that are to be established for travel along the NEL system. And that is why I think there was a bit of confusion there. I understand that SBS thought that since LTA had approved the application not to open Buangkok Station, that was the end of it. So there was some genuine confusion on the part of SBS as to whether or not they needed to go back to PTC, which is why, as it turned out, they proceeded on the basis of obtaining approval of LTA, and did not go back to PTC to inform PTC that there was a change in the number of stations that were to be opened.”