EFFECT OF MRT ON TAXI DRIVERS

Mr Teo Chong Tee asked the Minister for Communications and Information whether the earnings of taxi drivers have been affected since the partial operation of the Mass Rapid Transit system and whether the Registry of Vehicles has ceased issuing further taxi driving licences with the operation of the MRT system.

The Minister for Communications and Information (Dr Yeo Ning Hong): Sir, the MRT system has only been in partial operation for less than three months. So it is very premature to try to draw conclusions on the impact of the MRT on the earnings of taxi drivers. But data show that for the months of November and December 1987, the collections by taxi drivers have been much higher than that for the corresponding period last year in 1986. Sir, we are, however, constantly monitoring the situation closely, as new stages of the MRT system are being introduced for public service.

Let me take this opportunity, Sir, to give some figures to enable Members of this House to develop a sense of perspective of the overall taxi situation. Over the past two years, average monthly collections for taxi drivers have been showing an upward trend. For single-shift drivers, collection has increased from the base figure of $2,439 per month before April 1985 to $2,656 per month in 1986 and then sharply upwards to $3,007 per month in 1987. This represents an increase of about $217 per month and $568 per month respectively for 1986 and 1987. Similarly, the average monthly collection for taxi drivers operating two shifts increased from the base figure of $3,482 per month before April 1985 to $3,894 per month in 1986 and again another sharp increase to $4,352 per month in 1987. The figures represent an increase of $412 per month for 1986 and $870 per month for 1987. Sir, these increases quite obviously are well in excess of the $91 per onth that taxi drivers pay for the diesel tax.

Sir, it is clear that the fare and tax adjustments in April 1985 had achieved the expected results even though the initial implementation was made difficult because of the coincidence with the onset of the worst recession that we ever had in 20 years. Today, the commuters are better off. They have no difficulty getting a taxi any time of the day. The taxi drivers are better off. They earn a lot more. Other road users are also better off. The number of taxis has stopped increasing so they do not contribute to increasing congestion on our roads.

Sir, Singaporeans in general realize that the policies have worked and have worked well. That is why over the last two years, since May 1985 another 13,000 Singaporeans have taken up taxi driving lessons with NTUC Comfort and Singapore Com- muter Ltd and have qualified for taxi vocational licences. The ROV is the examining body certifying that the holder of a taxi vocational licence is fit to drive a taxi. ROV should not interfere with market forces and arbitrarily control the number of licences. As long as there are Singaporeans wanting to be taxi drivers and willing to take the course available, ROV will continue to conduct the test and issue the licences.