OFF-PEAK CAR SCHEME

OFF-PEAK CAR SCHEME

34.

Assoc. Prof. Ong Soh Khim asked the Minister for Transport (a) what is the current percentage of registered vehicles that are registered as off-peak cars; (b) has the Ministry monitored how frequent these off-peak cars have purchased day-licences so as to be used outside the "hours of free usage" as stipulated in the off-peak car scheme; (c) has the off-peak car registration increased or decreased since its implementation; (d) has this off-peak car scheme served its intended purposes; and (e) is this off-peak car scheme still necessary with the current wide use of ERP.

Mr Yeo Cheow Tong: Prof. Ong Soh Khim asked for some information on the Off-Peak Car or OPC Scheme, and whether the scheme is still relevant today.

The OPC scheme was designed to provide car owners with the option to own cars at significantly lower costs if they are prepared to use them sparingly. Under the scheme, OPC owners are given substantial upfront tax rebates and road tax discounts. In return, the use of OPCs is restricted to certain time periods. Since its introduction in September 1994, the total OPC population has been increasing steadily, from about 450 at the end of 1995 to about 8,300 today. OPCs currently make up about 1.9% of the total car population [or 1.1% of the total vehicle population].

The sale of day licences suggests that OPC owners are using their cars less frequently during the restricted periods. The number of day licences sold has been decreasing, from about 30 day licences per vehicle per year* in 2000 to about 13 last year.

The increasing take-up of OPCs, coupled with the decrease in sale of day licences, shows that the scheme is popular and has met its intended objective of providing individuals the option of owning cars at a lower cost in exchange for lower usage. It continues to be relevant today, even with the expansion of ERP, because the coverage of ERP is still not island-wide yet.

*The figure covers both Weekend cars and OPCs, which use the same day licence.