OFF-PEAK CARS

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OFF-PEAK CARS:

(Removal of restricted hours on Saturdays): 10.

Mr Zaqy Mohamad asked the Minister for Transport whether his Ministry will consider removing the restricted hours for off-peak cars on

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Saturdays in view of the Ministry's efforts to regulate traffic on Saturdays using ERP and greater adoption of the five-day work week.

The Senior Parliamentary Secretary to the Minister for Transport (Mr Teo Ser Luck) (for the Minister for Transport): Mr Speaker, Sir, the Off-Peak Car (OPC) scheme was designed to provide car owners with the option to own cars at significantly lower costs if they are prepared to use them sparingly. Owners of OPCs enjoy substantial upfront tax rebate and road tax discount. In return, the use of OPCs is restricted to certain time periods.

The usage restriction timings for OPCs are not set based on the normal working hours or the extent of ERP coverage, but instead, they are tied to the quantum of tax incentives given to the owners. If we were to make any change to the usage restrictions for OPCs, then we would also have to consider adjusting the tax concessions for OPCs. However, not all OPC owners may agree to a reduction in tax concession in exchange for such additional benefits. By continuing with the present scheme, OPC owners will continue to benefit from higher tax rebates and those who want to use their OPCs during the restricted periods have the flexibility to do so by displaying a Supplementary Licence.

Mr Zaqy Mohamad: I understand the OPC scheme and the ERP scheme are probably serving different interests. Will the LTA consider making a study on the impact of the actual number of weekend cars on the road on Saturday mornings? If it is not huge, I suppose the concession will be more than enough to cover without increasing the road tax, for example, and also let ERP regulate the traffic on Saturday mornings, since we

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are all moving to a five-day week for most industries.

Mr Teo Ser Luck: I think it is important to note the relationship between the restricted hours and the tax concession because, as I have mentioned before, the restricted hours are tied to the tax concession, and they are enjoying that benefit. But LTA will continue to monitor OPCs and see if it is necessary for the scheme to be reviewed again.