INCREASED VEHICLE REGISTRATION FEES (Special exemption from payment)

Mr Teo Chong Tee: To ask the Minister for Communications and Information if he will grant special exemption from payment of the increased registration fees to those who can show proof that they have booked to purchase their vehicles before the announcement of the increased registration fees.

Dr S. Vasoo (Tiong Bahru GRC): Question No. 5, Sir.

The Minister for Communications and Information (Dr Yeo Ning Hong): Sir, the next two Questions are inter-related. With your permission, may I answer them together?

Mr Speaker: You may.

Dr Yeo Ning Hong: The quota system will apply to all vehicles because all vehicles share the same road space. Motorcycles, as of last year, made up about one-quarter of our total vehicle population. With the inclusion of motorcycles in the quota system, a rush to buy motorcycles before the quota system is implemented is expected. Hence, like all the other vehicles which will come under the quota system, the growth of motorcycles must also be restrained during this interim period.

Nevertheless, the Government appreciates and understands that many motorcycle owners are from the lower and middle income groups and hence the interim increase has been kept low but still effective enough to restrain its growth. It is kept at one-fifth of the interim increase for the other vehicles.

As for the other Question, Sir, the interim increase in registration fees was implemented with effect from 31st January 1990. It applies to all vehicles registered on or after that date. The purpose is to restrain the purchase of vehicles during this interim period and it is therefore not possible to grant exemption to those who register their vehicles on or after the effective date.

Dr S. Vasoo: Sir, is the Minister not aware that the number of motorcycles has in fact decreased and what is the rationale for such a steep increase in registration fee from $5 to $1,005 for motorcycles?

Dr Yeo Ning Hong: Sir, as I mentioned, the intention of the interim registration fee increase was to contain the situation between now and the time when the quota system is in place. I expect to make a Ministerial statement on the quota system and the interim registration fee increases shortly and I will give all the detailed answers.

Mr Teo Chong Tee (Changi): Sir, may I ask the Minister whether he has the figures showing the number of people who have booked to purchase a vehicle before the increased registration fee?

Dr Yeo Ning Hong: Booking of a vehicle is a private transaction between the individual and the company and it does not concern the Government at all.