ROAD TRAFFIC (AMENDMENT NO. 2) BILL

Order for Second Reading read. 3.30 pm

The Minister for Transport (Mr Yeo Cheow Tong): Mdm Deputy Speaker, I beg to move "That the Bill be now read a Second time."

The Bill seeks to amend the Road Traffic Act (RTA) for the following broad purposes:

First, to revise the penalty framework for weekend and off-peak car offenders. I will refer to them from now on as off-peak car offenders;

Second, to require the disclosure of vehicle recalls and rectification of safety-related vehicle defects;

Third, to provide a legislative framework for the licensing of taxi companies;

Fourth, to enable enforcement action to be taken in respect of jaywalking at bus interchanges, false and misleading statements made in relation to vehicle type-approval and de-registration processes, and indiscriminate parking of heavy vehicles; and

Lastly, to formalise existing procedures and to revise outdated definitions and procedures.

Let me now highlight the key provisions in the Bill for the proposed amendments.

First, the penalty framework for off-peak car offenders. My Ministry has reviewed the penalties for off-peak car offenders who tamper with their supplementary licences. Typically, such offenders are caught with supplementary licences that have torn tabs that are pasted back. Presumably, the offender had pasted the tabs back in order to re-use the licence. Currently, offenders who are convicted of tampering with their supplementary licences are given jail sentences, even though the Road Traffic Act does not require a mandatory jail sentence. As a result, the careers of the offenders are likely to be ruined. The jail sentence is unduly harsh for those who are convicted for the first time.

To reduce the severity of the penalty for first-time offenders, clause 13 amends section 129 of the RTA to remove the custodial sentence provision for first-time offenders. However, to emphasise that it is a serious offence to tamper with a supplementary licence, the maximum fine will be raised from $5,000 to $10,000. Repeat offenders who tamper with off-peak car supplementary licences will face stiffer penalties. They will now be fined up to a maximum of $20,000 or face imprisonment for a term of not more than 12 months or both. This represents a substantial increase in the maximum fine from $5,000 to $20,000.

My Ministry has also taken the opportunity to rationalise the penalty framework for some of the other off-peak car related offences. Currently, offenders who drive off-peak cars without valid supplementary licences are liable to a fine, which is subject to a minimum pegged to the road tax of a normal car in the same category. This means that the minimum fine quantum varies according to the engine capacity of the car, even though the savings derived from the offence are the same, regardless of the engine capacity or road tax of the car. Hence, clause 3 amends section 11A of the Act to de-link the penalty framework for the offence of driving an off-peak car without a supplementary licence from the value of the road tax. It also aligns the penalty framework for this offence with other off-peak car offences, by setting a maximum rather than a minimum fine. Under the new provision, first-time offenders will face fines not exceeding $5,000 while repeat offenders will be subject to fines not exceeding $10,000.

Section 11A(4) deals with offenders who falsify the number plates of off-peak cars, so that their vehicles can pass off as normal vehicles. The Government takes a very serious view of these offences. Clause 3 enhances the penalty for such offences by replacing the current fine, which is based on a minimum of 24 months of road tax, with a more definitive penalty which carries a maximum fine of $20,000 and a provision for a jail sentence. This new penalty for this offence is in line with that proposed for repeat offenders who tamper with off-peak car supplementary licences.

To sum up, the amendments serve to rationalise the penalty framework for off-peak car offences and make the penalties more reflective of the severity of the offences.

The next set of amendments deals with vehicle recall requirements to better protect the interest of vehicle owners. Currently, vehicle recalls by manufacturers for defects due to the design or production process of the vehicle are carried out only through the co-operation and goodwill of motor traders. Clause 5 introduces a new section 23A to make manufacturers and dealers responsible for disclosing vehicle safety-related defects to the LTA and the affected vehicle owners. To ensure the safety of the affected vehicles, manufacturers and dealers will be required to effect the necessary rectification to such defects. Manufacturers and dealers who fail to disclose safety-related defects and effect the required rectification will face heavy penalties.

Let me move on now to the amendments pertaining to the taxi industry. A major source of dissatisfaction with the taxi industry today is the mismatch between supply and demand during peak periods, and poor service standards. To address these concerns, clause 11 of the Bill introduces an entire new part to set up a framework for licensing of taxi companies, with a view to raising taxi service standards. The new licensing framework will also pave the way for the further deregulation of the taxi industry.

Once we have put in place the rules on how taxi companies can be set up and how they are to be accountable for their service standards, we will lift controls on the number of taxi companies, and the fleet quota imposed on each company. Such a move will allow the market to respond freely to demand, thereby providing a better match between supply and demand. This will complete our move to liberalise the taxi industry, which started with the de-regulation of taxi fares in 1998.

Under the new framework, any person who wishes to run a taxi business must apply for a taxi operator licence. Applicants will be assessed based on a comprehensive set of criteria. This would include their financial resources and plans for providing a satisfactory service. Applicants will be required to operate a minimum fleet size of 400 taxis, and will be given four years to achieve this. This will ensure that the new operators will have sufficient economies of scale to provide a good service, for example, by being able to invest in GPS-based taxi booking services.

As part of the licensing framework, LTA will impose licensing conditions aimed at improving overall service levels in the taxi industry. These conditions include minimum Quality of Service standards and compliance with audit directions. The taxi companies will also be required to pay a licence fee, which will be based largely on the principle of cost recovery. LTA will formulate benchmark performance standards and track the taxi companies' actual performance. Companies which fail to meet these benchmarks will be subjected to financial penalties, which are capped at $100,000 per contravention. In severe and recalcitrant cases, their licences may also be suspended or terminated.

Through the licensing framework, LTA will also be empowered to specify codes of practice and issue directives in several areas, including the preservation and promotion of fair competition in the industry. Together with the introduction of a licensing framework for taxi companies, LTA will be revising the disciplinary framework for errant taxi drivers.

Today, LTA handles all disciplinary cases for taxi drivers according to internal procedures and guidelines. LTA will be revising the framework to make it more transparent and to enable the taxi companies to play a role in disciplining their errant taxi drivers. The revised framework will be similar to Traffic Police's Driver Improvement Points System. The details of the offences and the disciplinary framework will be made known to taxi drivers and the public in due course.

The revised taxi driver vocational licence demerit points system will complement the licensing framework for taxi companies. Together, they will bring about better taxi services for commuters, and pave the way for a liberalised, competitive and more responsive taxi industry in Singapore. LTA will shortly release details of the licensing framework for the taxi companies and the taxi driver vocational licence demerit points system.

The Bill will also enable enforcement actions to be taken in several areas:

Clause 12 of the Bill enables the Registrar to empower employees of bus operators to take action against anyone caught jaywalking at a bus interchange or terminus. In recent years, there have been a number of serious accidents where pedestrians were hit by reversing buses while taking short cuts across bus parking bays at interchanges. The bus operators have put up advisory signs and fencing to deter pedestrians from jaywalking within the bus park areas. However, they have been unable to act against persons who ignore the signs. Allowing the bus operators to take enforcement action against jaywalking therefore serves to ensure the safety of the public.

Under section 129 of the RTA, false or misleading statements or declarations made in relation to the registration of a vehicle are punishable. However, this provision does not cover similar offences in relation to vehicle type-approval and de-registration applications. Clause 13 extends the scope of section 129 to allow for enforcement action to be taken against vehicle type-approval and de-registration applications.

Clause 6 empowers the Minister to make rules to regulate the keeping and the use of heavy vehicles. Currently, owners of heavy vehicles have to demonstrate that they have approved parking places before they are allowed to renew their road tax. They do this by furnishing their Vehicle Parking Certificates (VPCs). The VPCs are issued by the operator of the heavy vehicle park at which they have their designated parking places. There are 39,200 heavy vehicle parking lots island-wide compared to the population of 27,000 registered heavy vehicles. As such, there are more than enough heavy vehicle parking places, an excess of 12,000 additional parking places than there are vehicles. However, despite having their designated parking places, some heavy vehicle drivers still park their vehicles overnight illegally or indiscriminately along public roads and within private housing estates. Usually, this involves drivers or individual owners who were unable to obtain designated parking places near to their homes. I can understand their preference to park their vehicles nearby, so that they can walk in the morning to where their vehicles are parked. Unfortunately, HDB and URA have stopped providing new heavy vehicle parking places within HDB estates. This is because of noise pollution and safety concerns. URA is also not able to allocate new heavy vehicle parks next to HDB estates because in most areas, the currently available large plots of vacant land are usually land that has been reserved for development in the near future. As such, these drivers should, like the other drivers who are parking their vehicles in designated parking places, make the necessary transport arrangements to get to and from their vehicles parked in the designated parking places.

The amendment will enable enforcement actions to be taken against indiscriminate parking of heavy vehicles. But before LTA proceeds to take enforcement actions, it will provide a grace period for owners and drivers to be informed about this new regulation. As there are still some vacant parking lots available near HDB estates, LTA will work with URA and HDB to make known to heavy vehicle owners and drivers where these additional parking spaces are still available. In the meantime, I would urge heavy vehicle owners and drivers who are parking indiscriminately at night to make appropriate transport arrangements to travel between their home and the designated parking places of their heavy vehicles.

The remaining amendments proposed under the Bill concern the refinement of existing procedures and definitions.

Madam, in summary, this Bill contains several amendments aimed largely at supporting new regulatory frameworks, as well as formalising and improving procedures for better administration and more effective enforcement.

Madam, I beg to move.

Question proposed.