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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“Sir, the PTC approved the fares on the basis of what SBS had submitted to the PTC. In actual fact, SBS had submitted a request for much higher fares which the PTC felt should be reduced, because PTC wanted to ensure that the fare premium on the NEL was kept to a reasonable limit of not more than 25 cents. Yes, SBS should have gone back to PTC to inform PTC that it had decided not to open Buangkok Station and that LTA, as a regulator, had approved its application to keep Buangkok Station closed. Should they now go back to PTC? I do not think it would serve much purpose at the present moment. Because, as I said, the NEL is already not viable in terms of the current operating expenses and revenues. They are losing money and incurring a deficit. I do not think that PTC would make any changes to the fares because of that $1 million reduction in its losses. So, it is a moot point as to whether it makes any difference if SBS had gone back to PTC. The second point is about SBS having informed the grassroots leaders that Buangkok Station was going to be opened and subsequently not informing them about a change of plans. Sir, I agree with Dr Michael Lim that having informed the Adviser and the grassroots that Buangkok Station was going to be opened, SBS should have gone back to them early to inform them that there had been a change of plans. We had, in fact, told SBS that what they did was wrong and they should not do such a thing again in the future.”
“Sir, the fact that Buangkok Station is closed makes no difference to the fares. Because if PTC's job is to ensure the viability of the operator, then it should be increasing the fares. So, as it is now, the NEL is incurring a fairly large deficit. By closing Buangkok Station, it has made the deficit a little bit smaller. That is all. It does not make the line any more viable.”
“Sir, unfortunately SBS failed to inform PTC of this fact.”
“The annual depreciation charge on Buangkok Station is about $3 million. This is incurred regardless of whether it is open or not. However, if the station is opened, the operator will incur an additional operating loss of about $1 million annually. Mr Chong also asked if a study has been done to ascertain if SBS Transit can operate the NEL viably without raising fares and closing down more stations. Let me assure the Member that SBS Transit would not be allowed to close any other stations on the NEL. Unlike Woodleigh and Buangkok stations, all the other NEL stations are essential for serving the developments around them. Before the Government decided to proceed with the construction of NEL, LTA had conducted extensive feasibility studies to ascertain that the line would be both economically and financially viable over the medium to long term. Although the NEL is incurring operating deficits in the initial years, the prospects over the long term are positive as more developments are completed in the north-eastern parts of the island.”
“Sir, the Land Transport Authority (LTA) had agreed to the request from SBS Transit to defer the opening of Buangkok Station because there is currently no development in the immediate vicinity of the station. Although some residents may be willing to walk a longer distance to use Buangkok Station, the critical consideration is that the number who is willing to do so on a daily basis must be high enough. Since Buangkok Station has not been opened, LTA has ensured that residents in the area are adequately served by buses. They can also access the North East Line (NEL) by taking feeder buses to the two nearby stations of Sengkang and Hougang. The operator for NEL was selected through a competitive tender. SBS Transit won the competitive tender in 1999 based on the merits of its technical proposal. There are advantages to having the same operator run both bus and train services. For one, it allows the operator to better integrate both the bus and train services for the benefit of commuters. Feeder bus routes can be better planned, and the first and last bus and train schedules can be better coordinated. Re-routing and bringing on of additional bus services in the event of a breakdown in train services can also be better managed. Even though SBS Transit operates both the buses and the train along the North East corridor, it does not have a free hand in deciding on the bus rationalisation package. It had to submit its proposal to the Public Transport Council (PTC) for approval. The PTC considered the overall operational efficiency of the transport network, as well as the impact on commuters. This process is the same, whether or not the operator of the train is also the operator of the buses in the area. Mr Chong asked about the cost of keeping Buangkok Station closed.”
“Sir, I do not have a deadline for that. We have already asked TransitLink to work with the operators to come out with such a scheme. They have to do a study to see what is involved, because there are a lot of complications. Whenever you do an integrated system, there will be complications in terms of revenue sharing and how to compute it. There is quite a fair bit of discussions that need to be done but we will keep on pushing them to come out with a scheme as soon as possible. BUANGKOK STATION 10. Mr Charles Chong asked the Minister for Transport (a) if he will give (i) the reasons for allowing the operator of the Northeast Line (NEL) not to open Buangkok Station, (ii) the rationale for allowing the same operator to run both the bus and train services in the same area without competition, and (iii) the approximate cost (including depreciation) of keeping the Buangkok Station closed compared to the cost of operating the Station; and (b) whether a study has been done to ascertain if SBS Transit can operate the NEL viably without raising fares and closing down more stations.”
“Sir, as I said, I am sure TransitLink and SBS would be happy to do it if it was feasible. When my bus routes were restructured when the East West Line was implemented, I tried to do a survey, which was really a dialogue with my grassroots people. We received 101 suggestions as to where the bus routes should run, depending on where they and their relatives worked and lived. Whilst it is a very good suggestion in theory, in practice, planning of bus routes is a lot more complicated than just taking a straw poll. It has to take into consideration the actual travel patterns of groups of people, not in terms of asking individuals where they work, because that would not tell you very much at all, unless you can ask everybody who is living in that area. A dialogue session does not really give outcomes that are very usable, but local refinements are useful and needed, and that is where the local dialogue is most useful. And this has been the pattern that we have been adopting since day one in terms of bus rationalisation, and they have worked quite well.”
“Sir, I did answer that question. I told her that I would ask SBS to see whether they can simplify the reams and reams of data so that it is easily decipherable and share it with the grassroots. I will ask them to see whether they can do it.”
“Sir, if you take a short bus ride with the improved feeder bus services, there is predictability of catching the bus. You also do not have to travel a long way where you are liable to encounter all kinds of traffic jams. Therefore, the train ride is at any time a lot more predictable than a bus ride.”
“In the case of the express bus services, they were put in place because there was no NEL in the past. So the express bus services were really in lieu of the NEL. Now that the NEL system is operational, the logic for having the express bus service in the area no longer exists, and that is why they were removed. As to why express bus Service 502 was retained because it belonged to SBS while the train system there belonged to SMRT, we have left it to PTC to review. PTC agreed with the bus operators and I would not want to second guess PTC on what led them to that conclusion.”
“Sir, Dr Michael Lim asked whether NEL was meant to reduce the cost of public transport. If I recall, I was sitting here when Minister Mah Bow Tan was talking about NEL, and he stressed the fact that the NEL line is going to be an expensive line and that commuters along the North East sector have to pay a premium for the NEL service. So, we never promised that NEL is going to bring the cost of transport down and that it would be cheaper than the existing form of transport. But the advantage of NEL is that commuters will now get predictability of travel time, and I think this is the biggest convenience offered by any train system. Commuters do not have traffic jams to worry about. They know that the train is going to arrive during peak periods, maybe within 5 minutes maximum time interval, which means that if they are unlucky and arrive at the platform just after the train pulls out, they only have to wait a predictable 5- 5 1/2 minutes. Whereas if they are waiting for a bus, they never know when the bus is going to arrive. The headway may be 7 minutes but there could be a traffic jam or an accident, and the bus could be delayed. So the predictability of time travel is a very important fact and I think that has been the feedback we are getting from the happy commuters who have been taking the NEL. At least, now they know when they can leave their home and when they are going to arrive in the office. And quite often, they end the day with extra time because the overall travelling time has been reduced. Of course, as I said earlier on, whilst the vast majority would have benefited, there will be pockets of people who would have been adversely affected. I think this is unavoidable.”
“Sir, SBS and TransitLink do indeed engage a consultant to do the study, because the study of route planning is actually a very specialised area. What the experts do is to mine the data available from the fare payment system, so that they know exactly how many passengers got up in one area, how much they paid, which will tell them roughly where they had gone through. So all this data mining is done by the consultants, and from this outcome, they will then have a fair picture of what are the key travel patterns. And from there, they can then do their route planning as to how the new routes should be structured, and what sort of feeder services are needed. Generally, this has worked out very well over the past 15 years or so since we had the MRT system and had to rationalise the bus routes. What we have found is that what is needed often is just fine-tuning at the local level. This is normally done along the entire stretch of areas affected by the bus rationalisation. I can assure Dr Amy Khor that if Jalan Besar is also affected, I am sure, in due course, they will also ensure that a review is done along the Jalan Besar area and, if necessary, more buses will be put there.”
“As to why they were involved in the dialogue session in terms of explaining the bus rationalisation, I think it was worked out between SBS and TransitLink as to who would take responsibility for which part of the communication process. As to why the Ministry was not involved, we are involved in terms of keeping a watching brief on what has transpired, and to make sure that the communication process is actually taking place. We are not involved directly in the briefing to the grassroots or the public. We have left it to the operators because they are the ones most familiar with the rationale for the changes and to explain their future plans to the dialogue partners. So we have left it to both TransitLink and SBS to manage the dialogue session. I would like to assure Mdm Phua that arising from the recent dialogue, I have instructed the staff to ensure that it is not just the mechanics of the dialogue, but to make sure that the preparations for the dialogue are properly done, so that the dialogue can be done in a timely and productive manner.”
“We have, in fact, asked TransitLink to work with the bus and train operators to see whether they can come up with an integrated bus and train concession ticket which should then meet the needs of those people who only need to travel a short distance on both the bus and the train. The third question was how is it that SBS was allowed to retain Service 502 from Jurong East to Orchard. I understand that whilst it serves the two stations, it also serves parts that do not lie within the train line and, therefore, it was justified by SBS that that section was still needed. However, the part that ran from Orchard all the way to the north eastern part pretty much duplicated the NEL line and that is why SBS took out that part. Nonetheless, I have asked LTA to work with PTC and the bus operator to ensure that those people who have been affected by the removal of the express bus services should be given good alternative feeder services so that they can link up to the nearest NEL station in as convenient a way as possible. I understand that SBS has replied that they are indeed looking into it and that, if need be, they will increase the number of buses and frequencies to make sure that those commuters who are affected do indeed have a good alternative service. Her last question was the relationship between TransitLink and SBS Transit and why is it that TransitLink was involved in the communication process rather than SBS. Sir, TransitLink is a company that is jointly owned by the operators and it is in charge of coordinating the bus routes and payment system for the rail and bus service.”
“Mdm Phua wants the study to be shared. Sir, I understand the study is based on the fare payments that are made by commuters along the route. I will ask SBS to see whether they can simplify the study and share it with the Advisors. The second question is the integration of the bus and train services. What are the principles related to that? She also asked about the concession tickets for the bus and train services for our students. Sir, the integration of the bus and train services is on the basis that since we have the train line and the stations defined, the bus services would then integrate with the train system by ensuring that the commuters living around the train stations are conveyed to the train stations that are nearest to them. This has been the principle adopted for the existing MRT systems when they were implemented and this same principle has been adopted for the integration of the NEL line and the bus routes along the NEL line. She also asked about the impact on the students who are now required to travel by both bus and train. Sir, the need to travel on both bus and train is already something which is being experienced even before the start of the NEL line because students living in other parts of Singapore may have to travel on both feeder bus and the train system in order to get to school. However, I think the situation with regard to the NEL line is that some students now may have to travel short distances on both the bus and train and therefore if they have to get two concession tickets, one for the bus and one for the train, which is the current system, they end up paying double.”
“It helps to reduce wasteful duplication, and helps to keep our public transport system affordable. Many commuters have benefited from the completion of the NEL line. The commuting experience for many Singaporeans has been transformed largely for the better. However, I appreciate that any rationalisation exercise can never be pain-free and some commuters would invariably be adversely affected. The transport operator has tried to minimise the number of commuters who are inconvenienced, and I can assure Members that the PTC and LTA will work with SBS Transit to ensure that the needs of this group are looked after as best as possible.”
“I can understand the unhappiness of those who have been adversely impacted, and I have asked LTA and PTC to ensure that SBS Transit is providing commuters on the affected routes with good alternative services. Mdm Phua asked why feedback from residents and grassroots leaders was not obtained before the decision to withdraw the essential bus trunk services. Sir, I am sure that TransitLink and the operator would like to do this, if it was indeed feasible. However, the rationalisation of bus services must be evaluated on a system-wide level, rather than based on individual preferences or feedback. The practice is for the operator to discuss with grassroots leaders and Advisors, after the rationalisation has been decided on, in order to fine-tune the changes at the local level. I understand this was, in fact, done last week. Based on the feedback received, the bus operator is looking into fine-tuning the integration of bus services with the NEL. In fact, I understand that it has already improved the capacity on several routes and commuters are now quite happy with the services. Mdm Phua asked why more time was not given to affected commuters to find alternative transport. I understand that SBS Transit waited about one month after the start of the NEL service before carrying out the bus rationalisation. It had also given more than a week's notice on the rationalisation of the affected bus routes. From past experience, this has proven to be sufficient time for commuters to get used to the new system and the new routes. Sir, let me conclude by reiterating to Members that the bus rationalisation exercise is an important and integral part of the commissioning of any new train line.”
“Sir, bus service rationalisation is undertaken whenever a major new train line is introduced. The operators need to do this to ensure that bus services are well-integrated with the train line, and do not end up substantially duplicating the rail system, otherwise this would lead to wastage of resources and raise the overall cost of public transport. The cost of maintaining the excess capacity in the public transport system would then have to be passed on to the commuters in the form of higher fares. I am sure Members would agree that this is an outcome that we would all want to avoid. As part of any bus rationalisation exercise, PTC requires a detailed study to be conducted on the travel patterns of the affected commuters. The objective of the study is to consider not just how the overall bus-train system can be best optimised for maximum operational efficiency, but also the impact on commuters in terms of travel times, convenience and cost. The PTC will then review the proposals submitted by TransitLink and ensure that the overall impact on commuters is positive. Members may wish to know that in the recent bus rationalisation exercise arising from the start of NEL operations, PTC did intervene to modify some of the proposals. This was to reduce the negative impact on some of the commuters who were adversely affected by the exercise. This is because while the introduction of the NEL has brought substantial benefits to the vast majority of Singaporeans living along the north-east sector, it is unavoidable that a small number of commuters would still be affected in terms of longer travel times or higher costs.”
“The North-East Line cost a total of $4.6 billion to build. This comprised (a) $2.7 billion for civil and architectural works, (b) $1.4 billion for mechanical and electrical works and systems (including the trains), and (c) $0.5 billion for land costs. The entire cost was funded by the Government. HDB TENDER SELECTION 5. Mr Chiam See Tong asked the Minister for National Development, in this bad economic climate, whether HDB is willing to review its selection criteria, in particular, to deviate from its normal practice of awarding a tender to the contractor with the lowest bid. 6. Mr Chiam See Tong asked the Minister for National Development whether he will review all contracts which HDB has accepted on the lowest tender prices to enable these contractors to complete the jobs for which they have tendered.”
“The North-East Line (NEL) has to be built underground because it passes through many areas which are already densely developed. By building it underground, we also achieve several benefits. First, it gives us maximum flexibility to site stations at more accessible locations for the greater convenience of commuters. Second, it minimises the environmental impact by reducing visual intrusion and noise pollution for residents living along the corridor. Third, it allows us to optimise land-use. A fully automated system was chosen for the NEL because of the significant benefits it would bring. First, it is safer. Experience around the world shows that most rail accidents are caused by train drivers. A fully automated system eliminates such a risk. Second, it provides greater operating flexibility as the deployment of trains is no longer dependent on the availability of train drivers. This allows the operator to schedule train services better and to deploy additional trains to cope with any sudden increase in passenger volume. This means shorter waiting time for commuters on such occasions. Third, it makes better use of manpower. Instead of putting an officer in the driver cabin on each train to perform routine and repetitive functions, the officer can now, if necessary, provide direct customer services to commuters on the train while continuing to attend to the other train operations. BUILDING COST OF NORTH-EAST LINE 4. Mr Low Thia Khiang asked the Minister for Transport if he will give (i) the total cost of building the North-East Line and (ii) the breakdown of the cost.”
“So it comes to Singapore and from here, it goes on cruises to Malaysia, Phuket and other destinations. It did 12 cruises from Singapore in the past two months and for March, they will have four cruises. So it is not that they are not using Singapore. It is just that this is a surplus ship, so they have parked it in Tanjung Langsat presumably because it is a lot cheaper to just park it there. Sir, I believe I have answered all the questions.”
“And the fact that we have very weak local and regional economies means that the clientele for the cruise industry has declined, both local as well as foreign clientele. Secondly, we also had the heightened security concerns amongst holiday-makers after 911. So these two factors together resulted in the number of cruise ship calls dropping by 40%. In fact, the reduction in the calls by Star Cruises was only 30%. So the other cruise lines suffered a bigger drop, compared to Star Cruises. Indeed, the entire cruise industry worldwide is also experiencing a slowdown. According to the UK independent research company, Ocean Shipping Consultant, the global cruise industry is expected to see continued weak market conditions over the short to medium term. It is expected only to start recovering in the second half of this decade. So, basically, we are all in the same boat. Mr Ong suggested that perhaps the high berthing charges could be a possible factor. Again, let me assure him that this is not so. Our berthing rates for cruise ships have remained unchanged. Since 1991, we have not changed the rates at all. This is because we know that the cruise business is very sensitive to cost, and, as such, MPA regularly reviews the berthing charges to ensure that we remain competitive. The ship that Mr Ong referred to is actually the Superstar Aries. Let me explain that this ship is normally home-based in Taiwan but because this is the off-season in Taiwan, the owners have brought it back to this region. They have brought it back for only three months from January to March. They have parked it at Tanjung Langsat. But while parking there, the ship still makes destination calls from Singapore.”
“This is located strategically in Changi's free trade zone and ALPS will then be able to leverage on the excellent connectivity and the superior handling efficiency of Changi Airport. The logistics companies can enjoy very rapid turnaround with minimal customs formalities. The opening of ALPS will definitely help strengthen our position as a leading air logistics hub, and we will definitely look into working with the other agencies to see how we can further develop our air and sea hubs. Mr Ong Kian Min spoke about the cruise centre. He stated that Star Cruise has reduced its callings at Singapore and is instead ferrying passengers from Changi Ferry Terminal to Tanjung Langsat. He asked whether this is another example of how we have priced ourselves out of the cruise market and asked how do we plan to regain this market. Sir, the real picture is quite different from what Mr Ong had painted. First, let me assure the House that Star Cruises is still operating from the Singapore Cruise Centre. It currently has three cruise ships that call regularly at our port - the Superstar Virgo, the Megastar Aries and the Megastar Taurus. It would be useful for me to explain to Mr Ong some of the developments in our cruise industry. In 2002, we had 740 calls by cruise ships. This was a significant 40% drop compared to the year before. So, in a way, he is right that there has been a decline in the cruise industry. Was this due to competition from Malaysia and high PSA charges? I think the answer is an emphatic no. The drop was due to two factors. First, we must understand that the cruise industry is a leisure industry and the leisure industry is very, very much dependent on how strong economic growth is.”
“Being a key local activity, SMEs do benefit a fair bit from these two sectors. Sir, we are definitely committed to growing the two hubs and not just looking at making sure that PSA and CAAS are able to generate reserves and surpluses. That means we are looking at how we increase the volumes of business at both the PSA and the airport. On the port, I have already spoken quite a fair bit in reply to Mr Chay and Mr Ang on what PSA is doing. On the airport, I think it is important for me to point out one factor and, that is, Singapore is actually not a natural air hub. We are not geographically located in the right place and our domestic market is really too small for us to be an air hub. But we have become an air hub. This is because of the tremendous efforts that we have put in in the past, in terms of growing the infrastructure and making Singapore into a business hub which then contributes to the development of the air hub. But new technology and equipment will pose significant challenges to us in the growing of the air hub. For example, the new long range planes will allow flights between Europe and Australia to take place without the need for an intermediate stop. At the moment, we are a very convenient intermediate stop. With the long range planes, they can actually over-fly Singapore. So how do we respond to this challenge? I think the answer is we have to be really nimble, alert and make sure that we continue to offer value-added services that make it worth their while for the airlines to stop in Singapore and for visitors who still want to come to Singapore, especially businessmen visitors. One of the things we are doing to develop the air hub is the development of the Airport Logistics Park at Changi, or ALPS.”
“In China now, PSA has four ports in Dalian, Fuzhou and Guangzhou. And I understand that PSA is actively looking for more port locations in China. In India too, PSA has two ports and, again, it is actively looking to collaborate on more port projects in India. MPA too has been active internationally. It provides training assistance to other port authorities in port management, oil spill response and the implementation of IMO conventions. This last part is quite extensive because there are a lot of IMO conventions and they are amended from time to time. So there is a lot of updating and training required. We play a big part in providing this training, not just to Singaporeans but also to trainees from the region, including from Africa as well. Mr Wee Siew Kim asked about the multiplier impact of our air and sea hubs. He asked us whether we measure the success of our air and sea hubs in terms of the downstream multiplier impact, ie, do not focus too much on the profits of just PSA and the airport but look in terms of how we grow the air and sea sectors, so that the multiplier impact on the economy can be achieved. I think he is probably referring to the many SMEs that are involved in these two sectors. Sir, I agree with Mr Wee that indeed the multiplier impact is very important, and that is why we do focus a fair bit on our air and sea hubs. The air and sea sectors alone contribute to 5.6% of our whole economy. So the benefit is not just to PSA and CAAS but, really, there is a huge impact on the rest of the economy. If you look in terms of the entire transport sector, which includes the land, storage facilities, etc, it contributes to 9% of our total economy. This is one of the key pillars of our economy.”
“For example, Guangzhou port grew by 40% last year, and that is because it started as a very small port. But in terms of actual container growth, it is really not very big, compared to the container growth in PSA Port. PSA Port last year grew by 8.8% to 17 million TEUs, ie, there was a growth of over a million TEUs in Singapore alone. As I explained to Mr Chay, PSA has been more innovative and flexible in their approach to customer service. I am quite confident that PSA in Singapore will be able to hold its own and, not only that, continue to grow. And if they can do that, I do not think we need to fear that there will be another round of retrenchments. 1.00 pm Mr Ang asked about the bridge that has been announced to replace the Causeway. He asked about the impact. Sir, the bridge will allow only small barges to connect Pasir Gudang to Tanjung Pelapas. This is because of the clearance required and the bridge will only be 25 metres high. So only small barges can sail under the bridge. Even then, it would take the barges slightly longer to sail from Pasir Gudang to Tanjung Pelapas as compared to sailing from Pasir Gudang to PSA. I think the impact of the new bridge on PSA is therefore not expected to be serious at all. Mr Ahmad Magad talked about leveraging on our port expertise. He asked that we consider marketing our port expertise abroad, especially to China and India, and he asked for MPA to collaborate with other countries because MPA also has significant expertise. Sir, I want to assure Mr Magad that that is exactly what PSA and MPA have been doing. PSA has been actively expanding, as I have mentioned just now, they are now in eight countries with 14 port projects. In fact, China is one of the key focal points of PSA's efforts.”
“We are now working closely with EDB and CAAS on how we can further develop these multi-modal shipping arrangements. The other area that we are looking at also is our cruise hub. As Mr Ahmad Magad knows, we have a cruise centre which is quite active. In recent years, the Singapore Cruise Centre has also benefited from the fact that we are an aviation hub. So, now we see more of the cruise lines running fly-cruise packages. They fly in passengers to Changi who stay maybe one or two days here, and then they leave through the port for regional cruises. So this is another exciting idea which we are looking at, which is really a multi-modal transportation package. Sir, Mr Ahmad Magad also mentioned that he would like us to review our customs procedures so that we can better benefit from the FTAs that we are signing. Indeed we are doing so. We are working closely with Customs and the relevant agencies to ensure that our customs procedures and our IT systems allow for the smooth and convenient movement of goods between Singapore and our respective FTA partners. Sir, Mr Ang Mong Seng expressed concerns that PSA's growth appears to be more focused on their overseas ports and, if that is the case, whether we will run the risk of losing our position as the No. 2 container port in the world, and whether this would in turn lead to a fresh round of retrenchments. Sir, I think Mr Ang probably did not interpret the figures very clearly. Yes, PSA has grown, both in Singapore and globally. Yes, the global growth has been higher in terms of percentage. But that is because the global throughput of containers is starting from a very low base. So, from a very low base, it is very easy to grow by a high percentage.”
“As a result, PSA today has an overseas network of 14 ports in eight countries, and I understand that PSA is actively striving to further enlarge this network of ports. What is crucial is that it intends to build a global network of ports that are strategically located along the key international shipping routes. In this way, it can offer basically a world-wide service to their partners, who are sailing worldwide. It will also allow PSA to link all the ports electronically onto one platform. If it can do that, this will save its key shipping clients the cumbersome administrative paperwork and allow those companies to focus more on their key business requirements, ie, managing their ships and supply chain management services. So, I think PSA is indeed rapidly restructuring and transforming itself, and I am quite hopeful that it will be able to retain its position as a global player. Mr Ahmad Magad said that the port must be able to rise to the occasion and must be able to craft its responses to meet the competition effectively. He asked that we position ourselves to take advantage of our position as a hub, in terms of both air and sea hubs. Sir, this is exactly what we are doing. We are now exploiting the synergies that can be developed from the multi-modal transport arrangements. For example, today, cargo can be shipped from the region to either PSA or to Seletar and, from there, because we have a very good road network, they can be trucked very quickly to the airport. Again, because of the tremendous connectivity at Changi Airport, these cargoes can leave very quickly for international destinations. So, today, we see flowers and, in fact, even tropical fish coming from the region being exported through Singapore.”
“Sir, let me take the cuts one by one. I will start off with the points made by Mr Chay. In some ways, Mr Wee Siew Kim also made similar points. Mr Chay asked how do we ensure that PSA remains responsive to its customers, and he asked how do we make sure that we have a global network of ports that fits in with the trend of shipping lines going more into supply chain management, and how do we make sure that we remain a world-class player. Sir, how we make sure that the port is responsive to customers is something which PSA alone has to be responsible for, because PSA is a corporatised body, it has its own Board of Directors and its own management. It has to set its own strategies and address the business challenges as it sees fit. Arising from the loss of the two shipping lines in the last two years, I think PSA has changed its mindset. There has been a change in management and a significant change in mindset. As such, PSA has been reaching out very actively, especially over the last six months or so, to its key clientele, to see how best it can meet their needs. I understand that the discussions include the possibility of dedicated terminals operated jointly with its key clientele. So, PSA has been making a lot of efforts and we are seeing the results. For example, PSA was actively engaged in negotiations with Hanjin Shipping Line of Korea. This was reported in the press. And despite a lot of competition from other ports, PSA has managed to enter into a long-term agreement with Hanjin. Again, this shows that PSA has managed to be flexible and to remain highly competitive. In terms of the network of ports, this is also what PSA has been doing over the last six or seven years.”
“Sir, LTA will require the complainant to come forward, as far as possible. If he is a tourist then we will just have to judge based on the complaint lodged by the tourist and we will still talk to the taxi driver to get his side of the story. In the past, this was never done.”
“Sir, it works both ways. NE Line will be passing passengers on to the SMRT system and vice-versa. So, if there are rebates, the same rebates will flow both ways, but these will be factors which PTC will definitely be looking into.”
“LTA will also investigate and enforce against errant taxi drivers under the new Vocational Licence Points System. As these are new activities, additional manpower resources and, hence funding, will be required. The licence fee is to enable LTA to fund these new activities. The licence fee of $25 per taxi per month works out to less than 1% of the gross turnover of the taxi companies. It amounts to less than three cents per taxi trip, against an average fare of around $7.00 per trip. The impact on the taxi operating cost is, therefore, extremely small. Sir, in addition, the taxi companies themselves have been making very good profits. In fact, Comfort last year experienced a significant increase in the profit level. I would also therefore hope, just as the Members have spoken, that the taxi companies do not pass on this taxi licence fee to the drivers as well. Sir, as LTA will need to set up an audit enforcement framework immediately, the work would be more intensive in the first two years of this system. The $25 licence fee is based on the budget of this initial, more intensive, phase of the regulatory work. I am happy to therefore inform Mr Ang that LTA will review the quantum of the licence fee and look into reducing it after two years. Sir, I think I have answered all the questions put up so far. I will ask my Senior Minister of State to answer the other questions.”
“Under this revised system, LTA will require both the complainant, as well as the taxi driver, to turn up for interviews so that the full facts can be ascertained. And only when LTA has been clearly satisfied that there has been an infringement of the rules and regulations will LTA proceed to penalise the taxi driver. The taxi driver will still have an appeals process. He can appeal to LTA or, if there is a suspension of the licence, he can appeal to the Minister for Transport as well. Sir, on the part of the taxi drivers, they will also be required to carry out the interviews accordingly. Sir, notwithstanding this new system of requiring interviews to be carried out, we recognise that the disputes between taxi drivers and companies will still arise from time to time, but there are already avenues in place for taxi drivers to resolve their disputes with their company. The aggrieved taxi drivers can approach their respective taxi drivers associations for help. And, in fact, that is one of the key roles performed by the taxi drivers associations. This approach has worked fairly well, and I think there is no need for the Ministry to step in to set up a separate dispute and resolution panel. Sir, Mr Seng Han Thong and Mr Ang Mong Seng spoke about the $25 a month fee. They are concerned about the quantum and they are also concerned that the taxi companies may just pass this on to the taxi drivers and to commuters. Sir, let me first explain the need for the taxi licence fee and put the fee quantum in perspective. The licence fee is linked to LTA's objective and its efforts to improve the level of taxi service. The licensing regime will require LTA, as the regulator, to closely monitor the performance of taxi operators and their compliance with the QoS.”
“For example, they have passed on to the drivers the diesel tax savings, they have offered rental rebates and they have passed down the bulk discounts on the purchase of diesel. Sir, while most taxi drivers do a good job, from time to time, there will be some who fail to deliver good customer service or, more importantly, infringe upon some rules and regulations. But I agree with Members that in such cases, the disciplinary framework on the part of the taxi companies and LTA should be transparent, fair and not arbitrary. Sir, I am happy to inform Members that LTA is, in fact, revising the disciplinary framework. Under this revised framework, there will be a clear delineation of responsibilities between LTA and the taxi companies. LTA will deal with complaints relating to infringement of rules and regulations by the taxi drivers, eg, over-charging by the drivers. LTA will accordingly award the demerit points under the Vocational Licence Points System (VLPS). On the other hand, taxi companies will only handle the complaints relating to customer service and they will not be empowered to issue demerit points under the VLPS. Sir, to make it transparent, LTA would publish a schedule of fines and demerit points and the guidelines for suspending or revoking the vocational licence. This will enhance the transparency of the framework. The taxi drivers will have a clearer understanding about their responsibilities and what is expected of them. 11.45 am In terms of the fairness of the system, under the present system, when a passenger or commuter lodges a complaint, LTA or the taxi company will examine the complaint and they need not necessarily call up the taxi driver or the passenger for an interview.”
“LTA now has powers to ensure that dominant players do not engage in anti-competitive behaviours, which is what Mr Ong is concerned about. I can assure Mr Ong that LTA will not hesitate to take appropriate actions should the dominant players be found to be doing so. Sir, with regard to pricing, I think despite the fact that we have a dominant player, this would not deter companies from varying their prices. In fact, TIBS today has a slightly different price structure compared to Delgro or Comfort and CityCab. I am sure, with greater competition, they will continue to innovate. Sir, Mr Seng Han Thong, Mr Andy Gan, Mr Yatiman Yusof and Mr Wee Siew Kim expressed concerns about having adequate protection for taxi drivers, especially when there are disputes or when there are complaints against them. They asked for a more transparent appeal process for the taxi-drivers and they suggested that we have an arbitration panel or a dispute resolution panel. Sir, first, let me state that it is in the taxi companies' interest to ensure that they treat their taxi drivers carefully and build up good rapport with them. This is because while taxi drivers need the companies in order to get their taxis, the taxi companies need the drivers equally much because, without the drivers, they will be in trouble. The satisfied and happy drivers will also be able to provide a better service to commuters and the benefits will again eventually flow back to the companies. Treating the drivers well also helps the taxi companies retain their good drivers. I am glad that the taxi companies do indeed recognise this symbiotic relationship as seen by the fact that they have gone ahead to introduce many measures to help their drivers financially.”
“I am sure that if the demand is strong for both the phone booking and street hail, they will find a way to balance the two and not to totally ignore street hail commuters. This is because if they do ignore them, they will only encourage new entrepreneurs to enter and to meet this unfilled demand. If CityCab is swamped with phone bookings, I think this would be a happy problem for them. They have the freedom to expand their fleet size now. Previously, we restricted them to a certain number. Now they are free to expand as and when they like. Mr Ong then went on to talk about competition in the taxi industry. Sir, he expressed concern that the Comfort-Delgro merger would create an even more dominant player and that having this very dominant player, where they can determine their price and the taxi trends, it would deter competitors from coming in or from having a different price structure. Sir, Mr Ong is indeed correct to be concerned with the merger. In fact, I was too, which was why when I heard about it, I straightaway asked my staff to find out from Delgro and Comfort what were their intentions with regard to CityCab and Comfort taxis. Comfort and Delgro have since explained publicly that after their proposed merger, their respective taxi operations will continue to operate separately. Each will have its own board of directors and management. But they will be able to obtain synergies in their back-end operations. For example, they can do bulk purchases of fuel, tyres, vehicles, etc. This would give them greater economies of scale and result in cost savings which I think would eventually be passed on to commuters. But we will have to continue to watch the merger very closely and carefully.”
“He has been reading the "tea leaves" in between the last time he spoke in Parliament about the taxi fares and the appearance of an article in the Straits Times that said the taxi fare in Singapore is too low. Sir, he thinks that actually it is the Government that is unhappy because this represents a loss of potential revenue to the Government. I want to assure Mr Ong that he is totally wrong that we are unhappy with the fare level. Neither LTA nor my Ministry has any share in the taxi fare revenue. So we are quite neutral. It makes no difference to us whether the fares are increased or not. Our primary interest is only to ensure that those who badly need a taxi are able to get one and that there is a better balance between supply and demand during the peak periods. He asked again that we publicise our preference for commuters to phone for a taxi and tell them not to street hail. Sir, as I stated a few minutes ago, yes, over time, we would like more commuters to use the phone booking service, especially those who want a taxi badly. But for those who are prepared to wait by the roadside, they can still continue to do so. There is no need for us to stop this practice. But commuters who do so must understand that we cannot assure them of the waiting time. Mr Ong is also worried that the QoS would force taxi operators to take their taxis off the road by putting them on stand-by. He cited CityCab's decision to reduce the charge for a phone booking and he is worried that if they get swamped with calls, they will not be able to manage with their current fleet size. Sir, I think the existing taxi operators are more enterprising than what Mr Ong is prepared to give them credit for.”
“We have very limited land and this means that buses and the MRT must form our modes of mass transport. Taxis are, in fact, a form of personalised transport. Taxi commuters enjoy a door-to-door service, one that is more akin to travelling in a chauffeur-driven private car. Ideally, taxis should not be cruising around looking for passengers, as they contribute to road congestion and air pollution. But this is a traditional practice, and I do not intend to stop it. But we can, over time, encourage better usage of taxis and our limited roads by encouraging commuters to make a phone booking. It gives all commuters who need a taxi urgently the assurance that they can get one quickly, even during peak periods. That is why we have made it compulsory for new entrants into the taxi market to also provide a phone booking service and it is not meant to protect the incumbents. Sir, in requiring taxi companies to provide phone-booking services, LTA is mindful of the cost. That is why LTA will only prescribe minimal requirements and not the specific technology to be used for the booking and despatch system. Mr Ong may be worried about the cost. LTA has told me that the start-up cost of a simple radio-phone booking system for a fleet of about 400 taxis is between $250,000 and $420,000. Sir, this works out to about $600 per taxi, which is less than 1% of the cost of a taxi. The cost per taxi will, of course, reduce as the taxi company increases the fleet size. Therefore, the setting up of a phone booking service will not be a barrier to entry of new taxi companies. Sir, Mr Ong next went on to talk about taxi fares. He is concerned that taxi fares look set to rise.”
“Where and when the demand is greatest, for example, in the CBD and during the peak periods, or even when there are thunderstorms, passengers should be prepared to pay more. In fact, today, Sir, there is already some degree of fare differentiation. This is achieved through the application of a peak-hour surcharge, a CBD surcharge, airport surcharge and other taxi surcharges. Sir, having just liberalised the taxi industry, I would be reluctant to now turn around and micro-manage it. The setting of fares and the design of the fare structure are really matters for the taxi companies to consider and decide. I do not think their management is lacking in imagination. In fact, I think it will be a sad day for Singapore if the Government has to teach the businessmen on how to operate their businesses. Sir, having said that, I can ask LTA to look into the possibility of linking some of the Quality of Service (QoS) requirements to our taxi service levels, especially during the peak periods - the key is to measure the outcome rather than prescribe the micro measures for the industry to follow. In the meantime, LTA and PTC will join the Member's call to urge the industry to better match supply with demand especially in the CBD during the peak periods. Mr Ong Kian Min spoke on the quality of taxi service. He asked why taxi companies are required to provide a taxi-booking service, and why not allow budget taxi operations to be set up that are not required to offer telephone booking services. Sir, this begs an even more fundamental question, ie, where does the taxi service stand in the public transport framework? I must explain to the Member that taxis are not considered a means of mass transport.”
“As at February this year, PTC had approved a total of 114 such non-basic services. Anyone who is interested in providing such a special service can obtain the application form from the PTC, or, if they wish, they can even go to the website for a copy of the application form. Secondly, Mr Ong asked about the progress of the PTC's review on bus service standards. I am happy to inform Mr Ong that the review is actively underway. PTC is taking into account public feedback and is trying to identify some best international practices in measuring bus service performance. To ensure that the proposed standards are robust, the PTC will also conduct a trial audit on these new standards once they are finalised. The results from the trial audit will then be used to fine-tune the standards. Sir, I think it is important that in reviewing the standards, PTC balances very carefully between meeting rising expectations of the public and the need to avoid over-imposing additional costs on the operators. PTC expects to complete its review and to announce the new standards later this year. Sir, let me move on now to the cuts on the taxi industry. Mr Chay spoke about the need for greater fare differentiation and felt that it would not come about if we merely left it to the taxi operators. Sir, he suggested that LTA consider intervening to bring about this outcome. I think the words that he used were that we should put in place "some micro mechanisms". Sir, I agree with Mr Chay that taxi drivers need to be incentivised to be at where and when they are needed most. He used the word "fare differentiation". It is a big word. In simple terms, it means that not all taxi trips, even if they are of equal distance, should attract equal fares.”
“For this reason, new and extension MRT lines are constructed only if the economic value they bring to the nation exceeds the cost of developing and operating the station. Otherwise, we will be wasting precious national resources. I will ask LTA to study whether an extension to Tuas makes economic sense and whether the operation of such a line can be viable. I will also ask PTC to study the need to increase the number and frequency of bus services to Tuas from Boon Lay Interchange to meet what Mr Yeo had pointed out. Mr Yeo Guat Kwang also spoke about the possibility of introducing new stations along the existing lines. In the case of Dover station, which he quoted, it had already been provided for when we built the existing East-West MRT line. It was therefore possible to build this station without too much complication. For locations where provisions have not been made earlier, LTA would have to explore carefully whether the site conditions allow this. But more importantly, even if site conditions allow, a cost-benefit analysis will still have to be conducted on its viability. 11.30 am Mr Ong Kian Min spoke on buses. He made two points in his cut. First he asked LTA and PTC to be more open to proposals for special bus services to serve the niche markets. Sir, Mr Ong may wish to note that PTC supports the provision of such services and that this is already being done. These niche services include premier services like express buses and the Bus-Plus services. There are also special services targeted at serving the public during specified times and for specific locations. For example, we have special shuttle services from condominiums or industrial parks to link them to the MRT stations or even to hawker centres, as Mr Ong has pointed out.”
“They have to ensure that the system fully satisfies LTA's stringent requirements for operational safety before it is allowed to commence revenue service. The operating licence also requires the operator to implement a comprehensive safety management system to the satisfaction of LTA. As such, LTA designed and ensured that NEL has all the needed safety systems required for its safe and smooth operation. Sir, let me now move on to Mr Yatiman's cut. I am glad that Mr Yatiman likes what LTA has done in the stations of the North East Line. As mentioned by Mr Yatiman, LTA has integrated works of art by local artists in the architecture. They reflect the cultural, ethnic and historical settings of the neighbourhood of the stations. By doing this, LTA has created a unique identity for each station. This makes the stations more interesting, and enhances the commuting experience. Mr Yatiman has asked whether this can also be done for the new Circle Line stations. I understand that the budget for the Circle Line is extremely tight, and it is already a big challenge building the Circle Line within the budget set for the project. Nonetheless, I will ask LTA to review and see if there is any way that we can take up Mr Yatiman's suggestion. Mr Yeo Guat Kwang suggested that LTA extend the MRT system into Tuas and build new stations on the existing MRT lines to serve the industrial estates that adjoin the MRT lines. I can assure Mr Yeo that LTA is constantly working on improving the public transport system serving the various parts of Singapore, especially areas with high population or high employment concentrations. However, we must remember that the MRT line is very costly, both to build and to operate.”
“This means that the fares on the existing MRT system will need to increase to cover the higher operating costs of NEL. PTC would have to consider this proposal very carefully. The other MRT commuters, especially those who do not use the NEL system, may object to having to pay more in order to cover the higher costs of NEL. Nevertheless, I will ask the PTC to keep Mr Chay's suggestion in mind when SBS Transit submits its proposal. Mr Chay next asked about the safety features of NEL. Sir, LTA has ensured that NEL has all the safety systems of the current MRT system, plus additional safeguards and safety features. The key feature of NEL is that it is fully automated. Train experts believe that this adds to the safety of the system. This is because experience around the world has shown that most the accidents are caused by human factors. For these reasons, fully automated systems are becoming increasingly popular worldwide. Other safety systems on NEL include an Automated Train Protection System that ensures that there will always be a safe distance maintained between the trains. In addition, the trains have built-in fire detection systems, and there are two CCTVs on board in each car. This will enable the operators in the control room to monitor what is happening, as well as allow passengers to communicate with the control centre. Sir, the system will be constantly monitored by multiple sensor systems as well as by highly trained specialist controllers in the Operations Control Centre. I would like to assure Members that LTA and the operator have been extensively testing the operational and safety systems over the past few months.”
“But even as we deregulate, we must still ensure that taxi companies deliver good service to the commuters. We will do this by licensing them and requiring them to meet the Quality of Service (QoS) standards. This is a new approach, and I would urge Members to allow some time for the QoS to work. We will complement this licensing framework with a taxi driver Vocational Licence Points System. I will go into that further, because quite a few Members have touched on this. Sir, let me now move on to answer the specific points raised by Members. Mr Chay suggested an alternative approach to imposing a premium on the North East Line (NEL) fare. I would like to inform Members that the fare structure for NEL has not been decided yet. This is because SBS Transit, the operator, has not submitted its proposal. I expect SBS Transit to submit its fare proposal to the Public Transport Council (PTC) within the next few weeks. Only then will the PTC know what the company is proposing as the fare structure for NEL. Sir, as I had explained to Members a few months ago, NEL, being fully underground, will cost more to run, compared to the existing MRT lines now. The NEL operator is therefore more likely to have to charge a higher fare in order to cover the higher operating costs. In fact, this possibility of a higher fare on NEL was highlighted by Mr Mah Bow Tan, the then Minister for Communications in 1996, when he announced the decision to proceed with the NEL project. Mr Chay has asked that, instead of a differential fare for NEL, we explore the option of maintaining a uniform fare structure for the entire MRT system, including NEL. This is, of course, possible. As pointed out by Mr Chay, we will need to allocate some of the revenues from the MRT lines to NEL.”
“Sir, first, let me thank all the Members who have spoken on a very broad range of transport issues. Let me address some of the broader land transport issues before replying to the specific points raised by Members. One perennial concern of Members, and of the public too, is that we have an affordable, quality public transport system. I, too, share this concern. The key to achieving this objective is to ensure that we have adequate competition within each of the land transport sectors. And if it is not possible to have direct competition, to ensure that there are adequate regulatory safeguards to ensure that the service providers are incentivised to be efficient and cost-effective, while meeting the stipulated quality of service requirements. Sir, we have over the years evolved the competitive framework for taxi, bus and MRT services, while ensuring that commuters' interests are safeguarded. This model has largely served us well. But it does not mean that there is no room for further improvement. For this year, one of the priorities of my Ministry is to completely open up the taxi industry. We will allow market forces to determine the taxi supply and the fare levels. In fact, we started in 1998 by allowing the taxi companies to set their own fares. However, we still have regular complaints about the mis-match between the supply and demand, especially during the peak periods, particularly in the CBD area. There are also complaints about poor service standards. Two months ago, I informed the House that we would be deregulating the taxi industry completely under our new licensing framework. Come June this year, new players can enter the market and compete with the incumbents for a slice of the pie. They can then help provide for a better match between supply and demand.”
“Mdm Deputy Speaker, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2003/2004, and ask leave to sit again tomorrow.”
“In October 2001, MOE further announced that one in four teachers will be required to obtain the Diploma in Pre-school Education (Teaching), and all other teachers to have Certificates in Pre-school Teaching by 2008. There has been good progress made in the number of teachers going for training among all the major kindergarten providers. MOE has an open channel of communication with all kindergarten providers and is keeping track of developments. The second initiative undertaken by MOE to uplift the quality of pre-school education has been the development of a framework for kindergarten curriculum, based on a set of desired outcomes for pre-school education. The curriculum framework was launched in January this year. The framework is available to all kindergartens, which are encouraged to use it as a guide to design their own programmes that meet the needs of children physically, emotionally, socially and cognitively. MOE does not intend to make the pre-school curriculum framework a formal requirement for all kindergartens. This is consistent with the Government's approach of having the provision of pre-school education remain in the hands of the private and community sectors. Such an approach encourages innovation as each kindergarten operator strives to meet the needs of its pupils. Finally, MOE is currently reviewing the legislation necessary for regulation of pre-school education. A Kindergarten Education Bill will be introduced in Parliament within a few months. INDUSTRIAL ACCIDENTS 20. Mr Yeo Guat Kwang asked the Minister for Manpower how many industrial accidents resulting in death and serious injuries were recorded in 2002 and whether there was any improvement in the safety record compared with previous years.”
“(This is minuscule and comparable to licence fees paid by operators in other regulated industries, e.g. telecommunications sector). It amounts to less than 3 cents per taxi trip, against an average fare of around $7. As you can see, the licence fee is not excessive. As LTA will need to set up the audit and enforcement framework, the work will be more intensive in the first couple of years. As the $25 licence fee is based on the budget for this more intensive phase of the regulatory work, LTA will review the quantum of the licence fee after two years, taking into account the actual costs incurred. I share Dr Amy Khor's concern that taxi companies should not pass on this cost to commuters. We have liberalised the taxi industry to allow new entrants into the market. Obviously, taxi companies will have to take into consideration the new competitive landscape before considering passing on this cost through any rental adjustment or fare increase. PRESCHOOL GUIDELINES 18. Mr Gan Kim Yong asked the Minister for Education how many of the preschools here have complied with the guidelines announced recently by his Ministry and what measures are being taken to monitor the progress of the preschools in complying with these guidelines. RAdm Teo Chee Hean: The Ministry of Education has announced various guidelines and measures to improve the quality of pre-school education in Singapore. The first of these measures concern teacher training in the pre-school sector. In December 2000, MOE announced that all kindergarten principals would be required to obtain the Diploma in Pre-school Education (Leadership) by 2006.”
“The objective of the Taxi Operator Licence regime is to improve the level of taxi service. Under this regime, taxi operators will be made more accountable for the quality of their taxi services, as they will need to meet a set of Quality of Service standards. The Taxi Operator Licence regime will require LTA, as the regulator, to closely monitor the performance of taxi operators and their compliance with the Quality of Service standards. LTA will also investigate and enforce against errant taxi drivers under the new Vocational Licence Points System. As these are new activities, additional budget and manpower resources will be required. The licence fee will enable LTA to fund these activities relating to regulating and improving the taxi industry. LTA expects to analyse and audit fairly often the performance records of the taxi companies for compliance with the Quality of Service standards in the initial 1-2 years. It has estimated that it needs an annual budget of $5.3 million, which includes the salary cost for 28 staff. The main cost items are: To develop and operate a new centralised computer system to administer the Taxi Operator Licence regime and the records of some 85,000 taxi drivers. To enforce the Quality of Service standards by analysing the radiophone booking systems of the taxi operators and commissioning external audits of the operators' radiophone booking systems and their operations. To conduct investigations and enforcement against errant taxi drivers. To monitor taxi services by conducting taxi surveys and auditing indicators submitted by the taxi operators. As there are about 19,000 taxis in Singapore, this works out to a licence fee of $25 per taxi per month. This is less than 1% of the gross turnover of the operators.”
“I think Mr Ong answered the question himself. During peak hours, the supply is not adequate. But if the taxi companies expand the taxi fleet significantly to meet this supply, they are going to be in deeper problems during the off-peak period. Perhaps there is a case for differential charging during peak and off-peak periods. That is already being done for the midnight surcharge. Perhaps there could be a case for differential charging. In any case, if the taxi fares remain low, so that three passengers will find it more attractive to ride a taxi than to take a bus, there will never be enough taxis during peak periods. So the price mechanism must come in sooner or later to establish a better balance. But where that balance is, we have to leave it to the taxi companies to decide. 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 Yeo Cheow Tong]. Bill considered in Committee. [Mdm Deputy Speaker in the Chair]”