SECOND CAUSEWAY (Agreement on scale of fees)

Mr Zulkifli bin Baharudin asked the Minister for Communications whether there are any agreements between the Singapore and Malaysian governments on the scale of fees to be charged to motorists using the second causeway and whether the Singapore Government had considered the amount of fees to be charged when the decision was made to construct the second causeway.

The Minister of State for Communications (Dr John Chen Seow Phun) (for the Minister for Communications): Mr Speaker, Sir, under the Inter-Government Agreement (IGA) for the Construction of the Second Crossing, each government may independently levy any toll on vehicles using it.

The Second Crossing is a project jointly developed by Singapore and Malaysia. We had no specific tolls in mind when we decided to construct the Second Crossing. Malaysia has announced that it would be collecting toll from motorists using the Second Crossing. Singapore has also announced that it will do the same. For a start, we will peg our toll rates to Malaysia's toll charges.

We hope that Malaysia will decide on tolls that are fair and reasonable taking into consideration the investment in the bridge and its ancillary facilities, as well as the need to optimise traffic flow across the Second Crossing as well as the Causeway.

Mr Zulkifli Bin Baharudin (Nominated Member): I would like to ask the Minister of State whether, in view of the poor reception of motorists and businessmen in Singapore, he has made any representation to the Malaysian authorities to ensure a more rational and feasible fee structure for the use of the Second Causeway.

Dr John Chen Seow Phun: Mr Speaker, Sir, we have made known to the Malaysians that we will match their toll rates and I have also commented publicly that the Malaysian rates, as reported by the press, were too high and expressed the hope that they be lowered. So let us wait for their announcement.

Mr Zulkifli Bin Baharudin: In view of the expression by some motorists that they may not want to use the Second Crossing and there could possibly be more congestion on the existing Causeway and the likelihood that the Second Crossing may not be utilised and become a white elephant, has the Minister of State considered plans whereby this will not happen?

Dr John Chen Seow Phun: Sir, this is also our concern and this is why I said publicly that we hope the rates would be reasonable. We have not finalised the rates. So we will have to look at what the actual rates are and, as I said, initially we will match the rates and we will decide later on what the rates would be in order to optimise traffic flow.

Mr Zulkifli Bin Baharudin: I am sure that the Singapore Government has its own reasons for proceeding in the first place to build the Second Crossing and I am very sure that the interests of motorists and Singaporeans are consistent with this objective. But if the Malaysian government were to consider not imposing more feasible charges for the Second Crossing, would he consider imposing different charges for Singaporeans and Malaysians using the Second Crossing?

Dr John Chen Seow Phun: Sir, when we determine the toll rates, we have to look at two considerations: the investment made by the Singapore Government and also the traffic objective. Since it is a joint project, it is in our interest to make it successful. And I am sure it is also in their interest to make it successful. So let us do not prejudge that it would not be a successful project. We are hopeful that it would be successful.

Dr Lee Tsao Yuan: Could the Minister of State please inform the House at what stage did the Singapore Government convey to the Malaysian Government that they would match the toll rates charged by them?

Dr John Chen Seow Phun: Both at the official level and also in our public comments. I think Mr Lim Boon Heng said that. I have said that in public also.

Dr Lee Tsao Yuan: My question is: at what point, or at what stage, was it very early on?

Dr John Chen Seow Phun: The agreement was that each government would set the rates independently although a joint committee was set up very early, I think, in 1994. The discussions were on various aspects, but the actual discussion on the rates itself was only in the last few months.

Mr Zulkifli Bin Baharudin: I would like to ask the Minister of State whether he would consider imposing similar charges for the First and Second Causeways to ensure that both Causeways are fully utilised.

Dr John Chen Seow Phun: That is one possibility but we have not finalised yet.