TAXI FARE REVISION

TAXI FARE REVISION:

(Impact on taxi drivers and commuters): 8.

Ms Irene Ng Phek Hoong asked the Minister for Transport for an update of the taxi crunch situation, especially in the Central Business District and Orchard Road areas after surcharges and flagdown fares were increased and whether (i) there has been an improvement in the waiting time for commuters to board a taxi in these areas; and (ii) commuters still have to resort to taxi phone booking while waiting in taxi queues.

9.

Mr Baey Yam Keng asked the Minister for Transport in view of the recent reports on taxi fare revisions affecting both taxi drivers and passengers (a) how long a transition period is necessary before the Ministry deems it necessary to step in to address the situation; and (b) whether the Ministry will review the policy of deregulated taxi fares.

The Minister for Transport (Mr Raymond Lim Siang Keat): Sir, with your permission, I would like to take Question Nos. 8 and 9 together as they are related.

Mr Speaker: Yes.

Mr Raymond Lim Siang Keat: Let me start by thanking Ms Ng and Mr Baey for asking these questions. It gives us an opportunity to update the House on the impact of the recent taxi fare revision on commuters and on the taxi drivers.

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Our preliminary findings show that the new taxi fare structure has been effective in ensuring that demand for taxi services is met. It is now much easier to get a taxi in the city during peak periods. In the four weeks after the fare revision, the waiting times at taxi stands in the evening have improved substantially in the city area, from 5 to 22 minutes on average before the fare revision to 2 to 6 minutes currently. For example, the waiting time at Suntec City, which was among the worst-performing taxi stands, now averages 4 minutes compared to 22 minutes previously. ComfortDelgro's phone-booking cater rate (ie, the success rate for getting a taxi) is now 98% during peak hours, up from 91% previously.

Taxi drivers' earnings have also increased. ComfortDelgro's data from a sample of 5,000 taxis showed that the average daily fare collected by taxi drivers had increased from $307 to $318 in the four weeks after the fare revision. However, we should allow time for demand and supply to stabilise further in the months ahead. The LTA will continue to monitor the situation as both taxi drivers and passengers adjust to the new fares.

Ms Irene Ng Phek Hoong (Tampines): Sir, can I ask the Minister whether there has been a spillover in the problem to neighbourhood centres, because taxis are now preferring to go into the city because of the surcharge and they are avoiding far flung areas like the old Choa Chu Kang Road or areas in Tampines which are harder to get to? Can I ask the Minister to monitor this?

Mr Raymond Lim Siang Keat: Actually, the indications are not so. In fact, the suburbs have no problems. After the fare revision, if we were to take a taxi from the suburbs to the city or the other way round during the peak period, there is now a 35% surcharge on top of the fare. So it

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actually balances out quite well. But as I said, these are all preliminary findings. This is just four weeks. Let us give it some time for it to settle down. Let us give three or four months, and we will get a clearer picture going forward.

Mr Baey Yam Keng (Tanjong Pagar): Sir, I would like to ask the Minister: compared to the previous adjustment of taxi fares, are we seeing a longer period of transition time that passengers and taxi drivers are adjusting to the new fares before the situation stabilises?

My second question: in the review of the national transport policy, would taxi fares be included in this review?

Mr Raymond Lim Siang Keat: The last time when the taxi companies adjusted the fare, it was not a lot, it was 10 cents. Even then, it took about three to four months, because I asked them this question. I met both the major operators - Comfort is the largest, and SMRT, the second. I asked them how long typically it takes to adjust. They told me that it would take about three to four months. This is about the typical period.

On the second question whether this is part of the land transport review, the answer is yes. This taxi fare revision is part of the whole process of the land transport review. LTA actually works very closely with taxi drivers and taxi associations. Members may recall that only a few months back, there was a litany of complaints about the taxi service. We had complaints that taxi drivers were hiding - the phenomenon of vanishing taxi drivers during certain periods of time. Commuters could not get a cab when they needed it most. Even when they called, they said they could not get through. And when they got through, they were put on hold. We had all sorts of complaints. LTA has been working very closely with the taxi companies and taxi associations to address this. So, this

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is actually part of the land transport review process.