TAXI FARES (Increase)

Mr Chiam See Tong asked the Minister for Communications whether taxi fares will be increased in view of the escalation of tender prices of Certificates of Entitlement.

Cdre Teo Chee Hean (for the Minister for Communications): Mr Speaker, Sir, applications for taxi fare revisions are considered by the Public Transport Council (PTC). If the taxi operators wish to raise fares, they have to apply to the Council. The operators will have to satisfy the Council that the proposed fare increase is justified.

Mr Chiam See Tong: Sir, has the increase in COE prices eaten into the income of taxi drivers?

Cdre Teo Chee Hean: Mr Speaker, Sir, this information is available to the taxi operators/companies and perhaps the Member would want to direct his question there.

Mr Chiam See Tong: I am sure the Minister has such data from the Public Transport Council. Unless, of course, he does not have it, then I will let it rest.

Cdre Teo Chee Hean: Sir, the information is available to the Public Transport Council. I do not have it with me today. But this is data which the Public Transport Council will take into account together with data concerning other issues which are relevant to the area of taxi fares before it decides on whether taxi fares ought to be adjusted.

Mr Chiam See Tong: Sir, if the increase in COE prices has affected the income of taxi drivers, would there not be some adjustments in taxi fares?

Cdre Teo Chee Hean: Mr Speaker, Sir, perhaps it is useful here to reiterate the principles on which taxi fares are based. The Member has chosen to single out one particular aspect. But the Public Transport Council has to consider all aspects, from the taxi users' point of view and from the taxi companies' point of view. These factors include the cost of owning and operating taxis, the earnings and patronage of taxis and the profitability of taxi companies. Apart from these factors, the PTC also considers the overall principle on which taxi fares are based, that there must be a parity of statutory cost between taxis and cars so that our available road space is used more efficiently. So this is the totality of factors which the Public Transport Council has to consider and not just the particular factor which the Member has raised.

Mr Chiam See Tong: If we take the question of totality of taxis as against private motor cars, when the maximum number of taxis is reached, the Ministry could easily curtail them. But that is not the position today. As long as the taxi companies can afford the taxis, they will be allowed to buy taxis. Is that not right? I think the question of supply of taxis is really not an issue.

Cdre Teo Chee Hean: Sir, I do not understand his question.

Mr Speaker: I do not understand the Member too. Mr Chiam, could you ask your supplementary question?

Mr Chiam See Tong: Yes, I am asking a supplementary question just to follow up on what the Minister has informed this House. He said one of the questions is the totality of the supply of taxis on the roads. My question is: at the moment, if at any time the taxis reach the maximum number, the Government could easily freeze the number of taxis. But that is not the case. Is there not a justification for adjustments in taxi fares?

Cdre Teo Chee Hean: Sir, I do not follow the logic of the Member's point. I am not sure whether he is suggesting that we freeze the number of taxis as a solution. If that is the case, I do not think that is a good solution at all.

Mr Chiam See Tong: There was a recent report that the taxi association, because of the rise in COE prices, made representations to increase the taxi fare slightly. The Minister gave the answer that one has to look at the totality of the problem. One of the problems is the supply of taxis on the roads. I believe that is what the Minister said. But that certainly is not an issue at the moment, is it not? Because the supply of taxis has not reached such a stage where you could curb taxis. So taxi companies are still allowed to increase their fleet as long as they can pay for the COE. In other words, as long as they pay for the higher price of taxis which is to be paid by taxi drivers ---

Mr Speaker: Order. Mr Chiam, could you ask your question?

Mr Chiam See Tong: The Minister says he does not understand my question. I have to explain.

Mr Speaker: Mr Chiam, could you get to the point and ask your supplementary question? If you have no further points, please resume your seat.

Mr Chiam See Tong: My question is the supply of taxis is not an issue, is it not?

Cdre Teo Chee Hean: Sir, the supply of taxis is not an issue.

Mr Chia Shi Teck (Nominated Member): Sir, having heard so much, can the Minister tell us whether taxi fares should be increased in the near future?

Cdre Teo Chee Hean: Mr Speaker, Sir, that is a matter for the Public Transport Council to decide. The Public Transport Council will consider it when the taxi companies make an application.

Mr Chia Shi Teck: Sir, as far as the Minister is concerned, there will be no taxi fare increases.

An hon. Member: He did not say that.

Cdre Teo Chee Hean: Mr Speaker, Sir, I said the Public Transport Council will consider this if and when the taxi companies make a proposal.

Mr Speaker: I must advise Members to listen to answers properly and refrain from repeating questions which have in fact already been answered.