IMPACT OF ERP EXTENSION ON RETAILERS

IMPACT OF ERP EXTENSION ON RETAILERS

34.

Mr Teo Siong Seng asked the Minister for Transport (a) whether the LTA has reviewed the traffic conditions and impact on retailers in Chinatown and other CBD areas after the extension of ERP hours to 8 pm; (b) whether imposing ERP charges after 7 pm has had an adverse effect on a vibrant and attractive night life in the CBD; and (c) whether his Ministry is aware that residents staying in CBD are unhappy about having to pay ERP charges for driving home from work during the extended hours.

Mr Raymond Lim Siang Keat: The Electronic Road Pricing (ERP) system is a congestion management tool which the LTA uses to help ensure that traffic conditions on the roads are smooth flowing and that road space is optimally utilised. Let me assure Members that the LTA conducts extensive reviews before making any changes to the ERP system such as extending operation hours, putting up new gantries, or reviewing ERP rates. LTA regularly reviews its implementation to make sure that the system remains responsive to changes in traffic conditions. A busy area like the CBD, including Chinatown, is no exception.

Prior to the extension of the CBD’s evening ERP operating hours from 7 pm to 8 pm in July 2008, the LTA had found that traffic within the CBD had been building up and travel speeds had deteriorated below the minimum threshold speed. With the enhanced ERP measures, the LTA found a marked improvement in travelling speeds within the CBD, especially in the Shenton Way-Chinatown cordon. The ERP rates there have since September 2008, been reduced to reflect the sustained improvement in traffic conditions during the evening peak hours.

Many people often conclude that ERP changes can only be bad for businesses, leisure activities or families residing within the ERP zone, either because they incur higher travel costs from ERP charges or their usual schedules are affected. However, they forget to consider the flip side of not making ERP changes, the consequences of which are the hidden costs of being stuck in gridlock. Whilst they may not pay for the congestion in ERP charges, they certainly do so in the form of fuel wasted and precious time lost. Thus, in the longer term, ERP ensures that our roads remain smooth flowing so that people can get to their destinations quickly and reliably, be it making deliveries, getting to the workplace, running errands after work, or returning home. This helps us achieve our overall aim of ensuring that Singaporeans will continue to enjoy a high quality living environment.

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