LICENCE FEE FOR TAXIS (Rationale)

Dr Amy Khor Lean Suan asked the Minister for Transport if he will (a) explain the rationale and basis for charging the licensing fee of $25 per month per taxi on taxi operators for monitoring the performance of taxis; (b) explain how the quantum of $25 is arrived at; (c) ensure that this additional cost will not be passed to commuters; and (d) state how the Land Transport Authority plans to monitor the performance of taxis.

Mr Speaker: You have got two minutes, Mr Khaw.

The Senior Minister of State for Transport (Mr Khaw Boon Wan) (for the Minister for Transport): The objective of the Taxi Operator Licence regime is to improve the level of taxi service. Under this regime, taxi operators will be made more accountable for the quality of their taxi services, as they will need to meet a set of Quality of Service standards.

The Taxi Operator Licence regime will require the regulator, LTA, to closely monitor the performance of taxi operators and their compliance with the Quality of Service standards. LTA will also investigate and enforce against errant taxi drivers under the new Vocational Licence Points System. As all these are new activities, additional budget and manpower resources will be required. The licence fee will enable LTA to fund these activities relating to regulating and improving the taxi industry.

LTA expects to analyse and audit fairly often the performance records of the taxi companies for compliance with the Quality of Service standards in the initial one or two years. It has estimated that it needs an annual budget of $5.3 million, which includes the salary cost for 28 staff. The main cost items are:

(i) To develop and operate a new centralised computer system to administer the Taxi Operator Licence regime and the records of some 85,000 taxi drivers;

(ii) To enforce the Quality of Service standards by analysing the radiophone booking systems of the taxi operators and commissioning external audits of the operators' radiophone booking systems and their operations;

(iii) To conduct investigations and enforcement against errant taxi drivers; and, lastly.

(iv) To monitor taxi services by conducting taxi surveys and auditing indicators submitted by the taxi operators.

As there are about 19,000 taxis in Singapore, this works out to a licence fee of $25 per taxi per month. This is less than 1% of the gross turnover of the operators. 2.00 pm

Mr Speaker: Order. End of Question time.

[Pursuant to Standing Order No. 21(3), Written Answers to Question Nos. 17, 18, 20 and 22 on the Order Paper are reproduced in the section "Oral Answers to Questions Not Reached" (Cols. 107 - 112). Question Nos. 19 and 21 have been postponed to the sitting of Parliament on 10th March 2003.]