EXTENSION OF PARF FOR PRIVATE MOTOR CARS

Mr Chiam See Tong asked the Minister for Communications and Information whether he will extend the period of eligibility for Preferential Additional Registration Fee in respect of privately owned motor-cars from 10 years to 15 years.

The Minister for Communications and Information (Dr Yeo Ning Hong): Mr Deputy Speaker, Sir, the PARF scheme was introduced in 1975 as an incentive to encourage motorists to scrap their cars before they are 10 years old. The objective is to reduce the number of old cars so that there will be fewer breakdowns on our roads and greater safety for our users. Traffic congestion during peak hours because of such breakdowns will also be minimized. The measure would also cut down on noise and air pollution on our roads.

This policy has proved effective. Raising the 10-year limit would be counter productive. It would mean encouraging more old vehicles to be on the road, with greater likelihood of breakdowns, thus, leading to greater traffic congestions and inconvenience to all road users.

Sir, I wish to point out once again that the PARF scheme is an incentive to motorists to scrap their cars before they become unroadworthy. There is no compulsion. Car owners are free to choose when to scrap their cars. Those who find it economical to maintain their cars at a high level beyond the 10 years are free to do so.

Mr Chiam See Tong: Isn't the continuation of this policy a waste on our country's resources? In fact, millions of dollars are wasted by cars being scrapped every year. Isn't that true?

Dr Yeo Ning Hong: Sir, the number of cars scrapped is a function of the number of cars bought, say, 10 years ago. Cars have their own specific lifespan beyond which they have very little value. So the scrapping of old cars does not in that sense represent a loss.

Mr Chiam See Tong: Sir, one more supplementary question. We have got the compulsory inspection of cars. With the continued carrying out of this policy of compulsory inspection of cars, is there an increase in the number of breakdowns?

Dr Yeo Ning Hong: Sir, there are fewer breakdowns on our roads because there are fewer older cars on our roads.