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A freeze on further increases in ERP charges?

Ccssgm

By Ccssgm,
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Ccssgm

Ccssgm

1st Gear

Minister for Transport Raymond Lim replies to questions on ERP in Parliament today.

 

Mr Lim Biow Chuan:

 

To ask the Minister for Transport whether he will consider a freeze on further increases in ERP charges until the cost of living for the average Singaporean is more stable.

 

Dr Lam Pin Min:

 

To ask the Minister for Transport if his Ministry will defer the erection of additional ERP gantries and further ERP rate increases in view of the escalating fuel prices which may have already deterred some drivers from driving or caused them to switch to public transport.

 

Minister:

 

Sir, the purpose of Electronic Road Pricing (ERP) is to manage congestion on our roads.

 

ERP is imposed or its rates raised only when traffic demand increases to cause the speed on the road to fall below the optimal speed threshold. For expressways, this is 45kph, and for arterial roads, it is 20kph.

 

Many people assume that if we do not make changes to the ERP system, our roads will continue to remain smooth flowing. This is not true. If we freeze ERP charges, the congestion does not go away but simply builds up on our roads. Nor is it true that if we freeze ERP charges, there are no costs incurred by motorists. The costs are there except that it is hidden in the form of time lost and extra fuel consumed being stuck in traffic.

 

At a time of economic stress, it is important that we ensure that our economy remains vibrant and productive.

 

One critical way to ensure this is to act decisively to prevent our roads from being gridlocked.

 

There have also been concerns on the impact of the ERP changes on the cost of living. In conjunction with the changes in the ERP system, the Government has reduced road taxes by 15%.

 

The increase in ERP revenue is estimated at $70 million against $110 million from the road tax reduction. This means that drivers as a whole are not worse off despite the higher ERP charges. Indeed, only 24% of drivers incur ERP charges daily, and the majority who do not pay ERP would be better off as a result of the 15% road tax reduction.

 

LTA will continue to monitor the road traffic conditions closely. If as Dr Lam said, drivers choose to drive less, whether due to higher fuel prices or public transport improvements and traffic speeds improve, the Government will be happy to collect less ERP revenue.

 

Mr Lim Biow Chuan:

 

I would like to thank the Minister for clarifying the role of ERP in managing traffic congestion.

 

Given the current high fuel prices and utility charges and high cost of living, would the Minister of Transport not consider, not just traffic speeds but also these factors in determining any increase in ERP charges?

 

I would also like to ask the Minister whether he would consider further improvements in the public transport before allowing ERP charges to increase.

 

Minister:

 

How do high fuel prices and public transport improvements impact on the ERP system? Now, the ERP system is a dynamic system. It is not a static system. The ERP rate is a function of the demand for driving on congested roads during peak hours.

 

If the demand for driving falls materially, because of high fuel prices or public transport improvements or both factors, then the ERP rates will either stay as they are or actually go down.

 

A good example of this would be the April 7th gantries.

 

When LTA announced this in January this year, it was based on speed data in December 2007. But after the January announcements, there were significant changes in driving behaviour.

 

So, if you look at the actual half-hour slots that LTA announced for April 7th, it was less than half compared to what was originally anticipated in January.* It is a dynamic situation. It is a function of the demand for driving.

 

Dr Lam Pin Min:

 

I would like to ask the Minister whether LTA has studied the effect of the escalating fuel prices which has increased by almost 100% over the past year on the road traffic congestion problem and the mode of travel pattern of Singaporeans, especially those who own private vehicles. And if indeed the traffic condition has improved, should the Ministry not withhold the ERP increases for the time being?

 

Minister:

 

My answer to Dr Lam's question is actually the same as the one I had given to Mr Lim. ERP rates are a function of the demand for driving.

 

If, like you said, the high fuel prices have affected driving behaviour and therefore traffic speeds have improved, this would be reflected in the ERP rates.

 

Depending on the extent in which traffic speeds improved, the rates stay as they are or they may actually come down.

 

*On 30 January 2008, LTA announced that a total of 18 half hour periods will be levied an ERP charge for the 5 gantries that would come into operation on 7 April 2008. But because of improvements in traffic speeds following the announcements, ERP was eventually implemented for 8 half hour periods.

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Picanto

Picanto

3rd Gear

its like asking a compnay to freeze its sales revenue. highly unlikely.

the erp gantries cost $$ to maintain and that $$ has to come from the mototrists

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Viotrex

Viotrex

Neutral Newbie

Come down? BAH!

 

It's probably like how oil companies drop their prices. Raise high over a period of time and then drop 4c and stop there for an even longer period of time.

 

Best la. I can also come up with such vague answers.

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Drumstick

Drumstick

Clutched

Of coz wayang....

They no need to increase in ERP.

Just need to build more shorten the distance between each ERP.

Just imagine, if they built ERP at 500mtr away from each other and all charge $1 each.

Just from AMK 1 -> Chinatown already will cost $15 on erp.

 

MIW wun be bother by it. Got driving allowance all inclusive in fat pay... Fat pay comes from our tax.

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Miles

Miles

4th Gear

there are still 2 opposition MPs sitting in the parliment. must still show the democratic side of the legislation process.

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Ktgan

Ktgan

Neutral Newbie

I used to travel on CTE from Ang Mo Ko to Raffles every morning. Usually i have to pay $2.50, $2, and $2.50 (in total $7) for the 3 gantries. Sometimes, I overslept abit, then have to pay $9.

 

After half year, i buey tahan, nowadays i pass through the 1st gantry just nice after 9am. So in total i will be charged for $3.50. And the traffic is very smooth.

 

If everybody also doing this, then what will happen. sigh.

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Jman888

Jman888

Moderator

if you start work at 9.30am or your boss dont mind you come in late [thumbsup] you really save a lot. Best start work at 10.30am, no ERP!

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