USE OF WEEKEND CARS ON SATURDAYS (Lifting of restriction)

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USE OF WEEKEND CARS ON SATURDAYS:

(Lifting of restriction): 19.

Mdm Halimah Yacob asked the Minister for Transport whether his Ministry will consider removing the current restriction on the use of weekend cars on Saturdays by allowing their usage for the whole day instead of the current 3.00 pm commencement time as many private sector companies as well as the public sector are now working on a five-day week and lifting the restriction will help to promote greater family togetherness.

The Minister of State for Transport (Mrs Lim Hwee Hua) (for the Minister for Transport): Mr Speaker, Sir, Mdm Halimah Yacob asked whether the current restriction on the use of weekend cars on Saturdays can be removed.

The Weekend Car scheme was first introduced in 1991 and it was revamped and replaced by the Off-Peak Car (OPC) scheme in 1994. The objective of the OPC scheme is similar to its predecessor, which is to provide car owners with the option of owning cars at significantly lower costs if they are prepared to use them sparingly.

OPCs enjoy substantial tax concessions comprising an upfront tax rebate of $17,000 and an annual road tax rebate of $800. In return for the tax concessions, the use of OPCs is restricted during certain specified periods. However, owners who wish to use them during these periods can do so by purchasing and displaying a day-licence costing $20 per day.

The total tax concessions for OPCs are equivalent to the cost of 150 day-licences at $20 a licence a day in a year for 10 years. If an OPC owner buys and uses 150 day-licences in a year, he can

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use his car for up to 213 days each year, inclusive of the 63 Sundays/Public Holidays in a year, before it costs him more than using a normal car.

The OPC car scheme represents another option of car ownership for those who wish to use their cars less frequently. The OPC tax concessions have been calibrated to allow the car to be used up to a certain number of days before it becomes more cost-effective to take the alternative of owning a normal car. If we were to allow OPCs to be used freely on Saturdays, then it is only fair that we also review and reduce the tax concessions that OPC owners currently receive.

On balance, I think it is best to continue to let OPC owners enjoy the tax benefits under the present scheme. Those who wish to use their off-peak cars on Saturdays during the restricted periods have the flexibility to do so by buying the day-licence.

Mdm Halimah Yacob: Sir, I am not suggesting that we remove the day licences - I think that is useful and it serves a purpose - but rather the purpose for restricting the use on Saturdays, which is obviously because of the traffic flow in the morning when people go to work. But now that the majority of companies are operating on a five-day work week, that reason does not seem to apply anymore. Would the Ministry still consider reviewing this requirement so that we can promote greater family-friendly environment, in line with the total Government policy on this?

Mrs Lim Hwee Hua: Mr Speaker, Sir, I fully appreciate the sentiments of Mdm Halimah Yacob. But I think it is important to recognise the principle here, which is one of maintaining the parity of the ownership between the OPC scheme and normal cars. At such point where too many days are actually allowed for under

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the scheme, it will actually swing the balance towards the OPC scheme, and that balance has to be reviewed from time to time.