PREFERENTIAL ADDITIONAL REGISTRATION FEE SCHEME (Extension to motor cars up to 15 years old)

Dr Ow Chin Hock asked the Minister for Communications and Minister for Labour, in view of the introduction of compulsory inspection of motor vehicles as from 1st January, 1982, if he will extend the Preferential Additional Registration Fee Scheme to motor cars up to 15 years old and, if not, why not.

The Minister for Communications and Minister for Labour (Mr Ong Teng Cheong): Mr Speaker, Sir, the Preferential Additional Registration Fee (PARF) was introduced on 31st December 1975, primarily to encourage car owners to replace their cars early, that is, before they are more than 10 years old. A surcharge on road tax was also levied on cars which were over 10 years old. These two measures were introduced so that we could have a younger car population and thereby improve the level of roadworthiness of cars and, therefore, road safety in Singapore. This would also cut down air and noise pollution from cars.

With the introduction of compulsory car inspection next year, it could be argued that there is no longer any need to encourage car owners to replace their cars early by continuing with the PARF incentive or surcharge disincentive. The Government has already decided that the surcharge on old cars will be abolished with effect from 1st January 1982. The question is: what do we do with the PARF? Some have argued that the 10-year age limit for cars to qualify for PARF should be abolished or increased to 15 years as proposed by the hon. Member. Others take this argument to its logical conclusion by suggesting that there should be no age limit, in which case the PARF should also be abolished.

I think we ought to evaluate the results of vehicle inspections over a period of time before deciding whether or not to change present policy.

Therefore, for the moment I do not intend to change the 10-year limit for PARF.

Mr Ho See Beng (Khe Bong): Mr Speaker, Sir, in place of a similar question* I have filed, I just want to ask a supplementary question. Since the Minister says that he will not give PARF concessions at the moment, how does he expect the car population to be reduced on the road?

Mr Ong Teng Cheong: Mr Speaker, Sir, I am afraid the Member missed my point. I did not say that we are not going to give Preferential Additional Registration Fee incentives. I am saying that we will keep it for the time being until we have been given a chance to study the results of car inspections over a period of time before deciding what to do with the PARF, So for the time being, we will retain the PARF scheme with the 10-year age limit. There is no change for the time being.