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http://money.cnn.com/2008/09/29/news/econo...sion=2008092914 US market already lau sai liao... tomorrow is a hard day for speculators

June 30, 2008 ELECTRONIC ROAD PRICING Policies on ERP and COEs seem contradictory I AM puzzled by the recent announcements on the impending Electronic Road Pricing (ERP) rate changes, with effect from July7. I vividly remember reading a Straits Times article in March or April this year on a Land Transport Authority (LTA) report on the benefits of introducing ERP in Orchard Road. The report stated that before ERP was introduced, retailers were worried the measures would drive away customers. However, instead of business going downhill, retailers in Orchard are enjoying record boom. One reason was that ERP deterred motorists who used Orchard Road as a thoroughfare, and genuine shoppers flocked there to shop. The report also stated that car speeds were an optimum 20kmh to 30kmh, and ERP gantries in Orchard succeeded in keeping down traffic. Now, on June 17, the LTA announced that car speeds in Orchard have fallen considerably, ERP charges will go up from $1 to $2 and operating hours on Saturdays will be from 11.30am to 8pm. My question is, who validates and verifies that cars are moving at optimum speed? Who checks these reports? Who decides that, three months ago, the speed was optimum, but now it is no longer so? One possible reason is that there are more cars on the road now. Cars are cheaper, application for car loans is easier, COE prices have dropped considerably, and rebates are given to motorists who switch to CNG cars. The LTA controls the number of COEs issued, and although it says it will control the number of COEs issued because of highly congested roads, many policies are implemented to make car ownership easier. So why does the LTA continue to issue COEs, even though it stated in a report last year that COEs issued are way above the stipulated quota - 9 per cent instead of 3 per cent? And after issuing so many COEs, the LTA introduces ERP gantries everywhere with higher prices and longer operating hours to discourage vehicle use. Why not control the issuing of COEs in the first place? I hope the LTA can shed some light on these apparently contradictory policies. Jennifer Wong (Ms) http://www.straitstimes.com/ST%2BForum/Sto...ory_252977.html