ERP? Aren't COEs meant to check car population?

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July 7, 2008

 

 

I AM confused and annoyed by policies affecting car ownership in Singapore. As a motorist, I am of the view that there are more and more cars on the roads nowadays, so the Government has to set up more Electronic Road Pricing (ERP) gantries and raise ERP rates to control traffic.

 

My question is simple. What happened to the original purpose of the certificate of entitlement (COE)? Isn't it supposed to be the ultimate tool to limit the number of cars on the road? If the COE is doing its job well, why are the roads so choked that the authorities have 'no choice' but to set up ERP gantries everywhere to control traffic?

 

Let's see what went wrong. First, for the past few years, the number of COEs grew, and car prices tumbled to a low five-figure sum. Second, car loans stretched to 10 years, with banks and dealers offering cash-back deals and zero downpayments. Third, additional registration fee taxes were reduced. The road tax has also been lowered.

 

Simply put, the measures made cars cheaper and many people flocked to buy them - and many of those shouldn't own a car at all. I estimate at least half the car owners today earn less than $5,000 a month. Why are they buying a car? With ever-increasing oil prices and inflation, one will soon need to pay more than $1,500 a month for a small Japanese car, including loan instalments, petrol, maintenance and repair, parking, road tax, insurance and so on.

 

And now, the new scheme will allow cash rebates to scrap cars, in order to turn drivers back to public transport. This is not wrong, but we are not using the system correctly. In the first place, we should make it very difficult to own a car, but we are doing the exact opposite by making it easy for people to own a car and subsequently 'converting' them back to public transport. This is moving one step forward and two steps back. Asking a car owner who has been driving for a decade to convert back to taking buses is like asking someone who is used to getting water from the tap to fetch water from a well again.

 

A better solution is to limit car loans to five years, with a minimum 50 per cent downpayment. This will weed out thousands of people who can ill-afford a car. And yes, make the COE useful again by releasing fewer of them.

 

Tan Wee Liang

[Friendstar]

ERP = Eliminate Ruling Party

[Silver_blade]

Tan Wee Liang is indeed confused. The gov already said they are moving from a more ownership bias system to one that is more bias towards usage.....therefore the COE system alone is not enough. They need ERP to their new policy work.

 

 

Actually I support the essence of new policy...but I don't agree on the way it's implemented.

[Darkblue]

The future of ERP ???

 

 

[inline futureerp.gif]

Edited July 7, 2008 by Darkblue

[Check13]

No choice

 

1) Cheap and easy to buy, but expensive to use OR

2) Expensive and difficult to buy, but cheap to use

 

Old days, roads not so good, no MRT, so govt gotta use 2. Suck as much $ as possible to build up coffers to improve infrastructure

 

Now that it's done, and a lot of young people think grad liao is damn big f***, complain why cannot even afford to buy car, govt gotta make u-turn and pick 1. Anyways, suck a lot liao for so long already so now need to change tactic and milk slowly. Win-win for both and nobody can blame govt since the people ask for it.

 

So blame who? Frankly, i rather back to old days where cars are expensive, not so many and cheaper to use. Maybe in another 20yrs time after they milk enough....

[Silver_blade]

In 20yrs time, they will probably think of other ways to milk more.

[Nhyone]

Asking a car owner who has been driving for a decade to convert back to taking buses is like asking someone who is used to getting water from the tap to fetch water from a well again.

 

If no one is willing to give up their car, how can the car population go down? Making cars more expensive to buy now penalize new buyers.

[Apollo]

all methods r used to fleece u not control car population.

 

if they failed to control singapore's population wat makes u think they can even control car population?

[Ahyoo2002]

since when it is Cheap and easy to buy?

 

Even with current structure, Singapore car is still one of the most expensive in the world

Edited July 8, 2008 by Ahyoo2002

[Yaloryalor]

Its like lure those ppl who barely can afford to buy the car then now use ERP to takan them!

[Leepee]

I am glad that many more peasants are now realising what a load of cow manure the new breed of ministars are dishing out for us to consume day in day out.

 

The reasoning are weak.

The implementation are slip shoddy.

The results are a failure.

The feedbacks are ignored.

The countermeasures are directly punishing to the poor peasants.

 

PHUI!

[Apollo]

it's not the reasoning is weak, it's more like the more complex they make it, it has grown further complication that they no more understand what is the exact cause.

 

but for sure, PARF , COE and ERP and petrol is no more deterrent. each policy as it is set out r failing and they r quietly not acknowledging these facts.

 

I wun b surprise if it comes out in a few years time that CPF is also failing.

 

world crass indeed.

[Jeffang]

this is the way to make more $$$!

milk everyone dry!!!

[Ah_dude]

ERP= control your driving habit...dun suka suka zoom here and there

COE= control car population...

 

Anyway..the one who wrote to ST forum missed out a very important and fundamentally crucial consideration.

 

His suggestion of 50% downpayment and 5 yr car loan will be effective..but what is the implication..what will be the economical impact ?

 

- PI will suffer, AD will suffer...hence resulting in increase retrenchment, unemployment.

 

- Bank will cry father cry mother...coz less loan to process

 

- LTA will have a bigger problem...ie. declining revenue!!! caused less car mean less $$ from COE (depend on which perspective you looking at...in hey day where COE is 40k..then different meaning), ERP, Roadtax, ARF etc.

 

That also mean they cannot simply up their y-o-y revenue target from SIMPLY planting the "money tree" (gantries) and hence every year apprasial will no longer be EXCELLENT anymore hence affecting their individual PErformance Bonus.

 

 

BUT...I still think hefty downpayment (min 30%) and 7 yrs max loan will be detering enough...and it's will be a GOOD way to curb implusive car buying habit.

 

Difficult to be the gahment here...on 1 hand want to satisfy the dreamzzz of many Sporean..and the other hand..control the car jamming situation..No wonder we need the brillant of the brillantsssss so that

 

1) Car population under control

2) Dreamz satisfied

3) Traffic speed regulated to min 45kmh

4) Yearly revenue increasing

5) Low unemployment

6) Bank happy

7) Petrol remains affordable

[Sktan10]

Then we will see alot of coe cars around again like the 90's.

[Starhub]

why penalise those who can afford the car. We are supposed up to the level where we can do the sum carefully and whether can we afford to maintain the car and the current lifestyles. For those who can't do their sum and over-stretch themselve that's their problems, if they wish to buy a car then everyday peanut butter, that's their issues.

 

And also don't rely government to make things difficult for ppl to own a car in the first place. If cap at high downpayment and short loan period... ppl will complain too =(

 

we are educated ppl, make the choice wisely and don't complain.

[Leepee]

From all the problems so far, the MAIN reason is because gov promised to keep road jam free but failed miserably. That is why all of us are complaining.

Its not about affordability of cars or limiting COE or ERP anymore.

Too many rules and schemes are laid over each other until everyone is confused and fed-up.

 

A huge proportion of Singaporeans are very RICH. This group of people owned cars far more than what the road can handle during peak period.

Even if you tax $10 per ERP, these same car owners will still pay (I will myself no matter what price of ERP in future).

Gov keep thinking that by pricing the road, the marginalised poorer people will stop driving.

FOr Krist sake there are 77,777 millionaires in Singapore, the number of cars will also increase. How are you going to punish this group of RICH car owners?

 

Please don't think that HDB dwellers are all poor. The way HDB creat artificial gains in ALL HDB flats owners in 2007, has created a pseudo wealth in many Singaporeans who are willing to spend to enjoy the good life.

Because the gov DARE not implement rules that punish the rich, the traffic jam will always remain idefinatly.

 

Tell me which poor singaporeans owns a car now? I bet many car owners will tell you that they feel rich because their HDB/house are all in positive equity. If worst come to worst, just downgrade to smaller house loh.

[Drive_carcar]

It is easier to list out places that's not affected by ERP.