CONVERSION TO WEEKEND CARS (Rebate on Additional Registration Fee)

Dr John Chen Seow Phun asked the Minister for Communications whether a rebate on the Additional Registration Fee will be given to those who wish to convert their normal cars to weekend cars.

Mr Mah Bow Tan (for the Minister for Communications): Mr Speaker, Sir, when Government agreed to allow existing cars to convert to weekend cars, we had two choices when considering what rebate to give. The first choice was a pro-rated refund of the net Additional Registration Fee (ARF) and import duty. The second choice was an enhanced rebate on the road tax. We decided on the latter scheme. In lieu of a refund on ARF, we decided to give a 95% rebate on road tax, in other words, 25 percentage points more than the 70% for new weekend cars. The reason why we opted for road tax rebate was that it was simpler to administer and also fairer to the motorist.

Let me explain. The net ARF of a car is the ARF less the lump sum PARF value. For many of the older cars, the ARF paid could be either equal to or even lower than the lump sum PARF value. So if we had opted for the first option, these car owners would end up getting very little or even no rebate of the ARF and import duty. They would then only enjoy the 70% rebate on the road tax. So under the second option that we finally decided on, they would enjoy a 95% rebate on road tax.

Dr John Chen Seow Phun (Hong Kah GRC): Sir, since the Minister thinks that the first option is administratively more burdensome, I would like to ask whether, in order to increase the attractiveness of the scheme and to benefit more Singaporeans, he would consider allowing weekend cars to go on the road, except the CBD, during weekdays, say, from 11.00 am to 3.00 pm without having to pay for the labels?

Mr Mah Bow Tan: Sir, what the Member is suggesting is that we extend the hours whereby the weekend cars are eligible to be on the road. The fundamental purpose of the weekend car scheme is to allow more Singaporeans to own a car and at the same time make sure that they do not use it at certain times which would congest the road further. Our present study shows that these so-called off-peak hours where congestion will be much less are in the evenings and on weekends. It does not include those hours that the Member suggested just now.

Dr John Chen Seow Phun: Sir, I believe the congestion during those periods ---

Mr Speaker: Dr Chen, no speeches, ask your question.

Dr John Chen Seow Phun: Yes, Sir. The Minister said that during those hours ---

Mr Speaker: What is your question, Dr Chen?

Dr John Chen Seow Phun: I am asking whether it is true that the roads are congested during those hours. From what I know, it is only in the CBD. That is why I am asking whether he will consider allowing cars to be on the road, outside CBD, during weekdays and from 11.00 am to 3.00 pm.

Mr Mah Bow Tan: Sir, it is extremely difficult to say that during these hours, there is no congestion outside the CBD. I think all of us would have experienced congestion during these hours at one time or another. The point I am trying to make is that, for a start, for the weekend car scheme to work, we would have to demonstrate that it is attractive enough for Singaporeans to want to own a car and at the same time not use it to the extent that it clogs up our roads. For those hours that the Member is suggesting, PWD statistics show that there is a certain amount of congestion, perhaps not as much as during the peak hours, but certainly not enough for us to warrant extending the hours of usage at the moment.