ROAD TRAFFIC (AMENDMENT) BILL

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ROAD TRAFFIC (AMENDMENT) BILL: Order for Second Reading read.

The Minister of State for Transport (Mrs Lim Hwee Hua): Mr Speaker, Sir, "I beg to move that the Bill be now read a Second time."

Sir, the Bill seeks to amend the Road Traffic Act (RTA) for the following purposes:

(a) First, the implementation of a new IT system for the registration and licensing of vehicles;

(b) Second, the introduction of a licensing regime to regulate the operation of bus interchanges;

(c) Third, amendments to improve the LTA's operational and regulatory effectiveness.

Sir, let me now highlight the key provisions in the Bill.

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A New Vehicle Registration and Licensing System

Sir, the RTA will be amended to provide for a new IT system, the Vehicle Registration and Licensing System (VRLS), to support LTA's vehicle registration and licensing operations. The new system would leverage on Internet technology to deliver accessible, convenient and integrated vehicle-related electronic services to the motor trade industry, vehicle owners and the public, in the comfort of their homes and offices. The electronic service would accept multiple electronic payment modes, be available outside of office hours, from 6.00 am to midnight daily, and would enable motor dealers to provide one-stop service to their customers when purchasing or selling a vehicle.

Clause 9 of the Bill enables the LTA to provide electronic services for the filing of applications to LTA, for example, for the registration and transfer of vehicles. The electronic services will support the move towards scripless transactions by doing away with the need to issue physical vehicle registration cards, commonly known as "log cards".

The amendments would allow for the assigning of user accounts to transact with LTA through the new IT system, and for the assigning of authentication codes (ie, the User ID and Password or the Transaction PIN) to these users.

The LTA would be able to set rules to allow any person, such as motor dealers, authorised Scrap Yard or Export Processing Zone operators, and authorised road tax collection centres to apply to LTA to be "Electronic Service Agents" (ESA). As an ESA, they can submit applications, both for their own account or on behalf of their customers, to LTA via the IT system. This is to allow the motor trade industry to provide one-stop services for the convenience of their

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customers. To protect the interests of consumers, the LTA may suspend or cancel the registration of an ESA if the latter has contravened any provisions of the Act, rules or terms and conditions governing the use of the electronic service.

The LTA will be providing more details on the roll out of the new e-services, and what the changes will mean for vehicle owners and the motor industry. In essence, the VRLS would be launched in two phases. The Phase One launch would enable vehicle owners to access their accounts and obtain information on their vehicles, Temporary COEs, PARF/COE rebates, and vehicle registration numbers retained or obtained through bidding. For convenience, Singaporeans and Permanent Residents could use their SingPass to logon to the new IT system's "Vehicle Hub".

During Phase One, motor industry users would be able to submit registration, transfer and de-registration applications online for their own account or on behalf of their customers directly to LTA. The transactions would be processed and confirmed immediately if all the necessary pre-requisites, such as motor insurance cover, passing of vehicle inspections, have been satisfied.

In Phase Two, more transactional e-services would be made available to vehicle owners themselves, for example, applying for the transfer of their vehicles directly to another individual.

A licensing regime to regulate the operation of bus interchanges

Clause 17 of the Bill introduces a new licensing regime to regulate the operation of bus interchanges. Under the current system, the management and operation of bus interchanges owned by Government are regulated through Licence Agreements signed with the bus and commercial facilities operators. Such a requirement

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cannot be extended to those bus interchanges that are not owned by Government. We therefore need to put in place a more effective regulatory framework so that operators of all bus interchanges can play a more active role in strengthening the security of the interchanges. This is even more pertinent given the current heightened security environment.

Under the proposed framework, the LTA may grant a bus interchange operator's licence on the application of any person, subject to conditions relating to the operation, safety and security of the bus interchange. It will be an offence to operate any bus interchange without a licence granted by the LTA.

In the event the operators fail to comply with any licence conditions or directions issued by LTA, the LTA can also rectify defaults of the bus interchange operator, suspend or cancel a licence or impose a financial penalty in specified circumstances.

Other amendments to improve operational and regulatory effectiveness

Sir, the other amendments proposed in the Bill are to enable the LTA to improve its operational and regulatory effectiveness. I will now highlight some of these amendments.

Requirements for vehicles exceeding 4.5 metres in height

Currently, under the RTA, the driver or person in charge of vehicles exceeding 4 metres in height is required to obtain a permit from the Traffic Police for the vehicle to be driven on the roads. Clause 13 amends the RTA to remove the requirement for permits so as to move towards a more self-regulating regime.

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Presently, as part of the permit application process, owners and drivers of heavy vehicles with overall height exceeding 4.3 metres are also required to engage a police or auxiliary police escort when driving on public roads. With the proposed changes, the RTA will only require those with overall height exceeding 4.5 metres to do so. Therefore, the above amendments will save time and effort for the drivers without compromising the safety of road users or users of overhead structures.

_An offence to obstruct the removal of stationary vehicle from an expressway
_

It is necessary to remove stalled vehicles from expressway shoulders expeditiously for safety reasons and to maintain smooth traffic flow. There have been cases where motorists have refused to allow their vehicles to be towed away by LTA, thereby compromising their own safety and the safety of other motorists. To deter this, clause 18 of the Bill makes it an offence for any person to refuse to permit or obstruct LTA or its agent from exercising its powers to tow away the vehicle. The offence will be made compoundable.

Responsibility of person who furnished false or misleading particulars

in connection with the change of registration of vehicle

Currently, for the offences of making false statements and providing false particulars in relation to documents kept or required under the RTA, the person held responsible is the one who made the statement or declaration or had provided the information. There is the possibility that a person, such as a director of a company, can cause another person, such as an employee, to make false statements or declarations or provide false particulars. Under the current provisions, the director cannot be charged, as it was not he who made the false declaration. Clause 20 of

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the Bill addresses such situations and ensures that these perpetrators can also be prosecuted.

Cancellation of registration of a vehicle which has ceased to be kept or used on the road

Clause 7 of the Bill enables the Registrar to cancel the registration of a vehicle if he is satisfied that the vehicle has ceased to be kept on the road or will be destroyed or removed from Singapore within a prescribed period. This gives LTA a greater degree of flexibility in handling vehicle de-registrations which presently are limited to scrapping or exporting of vehicles. This gives scope for LTA to implement additional de-registration schemes which would better meet the needs of Singaporeans, for example, the keeping of de-registered vehicles as training aids in institutions of learning or for display purposes in a private compound.

In summary, these proposed amendments to the RTA will enable LTA to carry out its duties more efficiently and effectively.

Sir, I beg to move.

Question proposed.

2.56 pm

Mr Ong Kian Min (Tampines): Sir, I rise in support of the Amendment Bill.

The new Vehicle Registration and Licensing System (VRLS), proposed under this Bill, marks a quantum leap forward in the efficacy of transactions relating to the registration and licensing of vehicles. With the new VRLS, long queues at the Land Transport Authority will be a thing of the past and vehicle owners and motor traders alike will be able to enjoy savings in time and travel using the online computerised system from the comfort of

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their home or office to complete the transaction.

I think the implementation of this new system is long overdue as commercial banks, airlines, hotels and many other Government agencies have all gone online to provide electronic services. More importantly, Sir, in addition to merely providing a better and more convenient service, the VRLS seeks to prevent some of the problems and abuses that have surfaced under the present paper-based system of registration. Although the log card is not a document of title and does not prove ownership, scams involving photocopied, duplicate or forged log cards have caused undue distress to helpless vehicle owners. In recent years, we have also heard of complaints from car owners of their vehicles being transferred without their knowledge. Banks and finance companies that dispense loans based on fraudulent documents have also been entangled.

In the fraud case involving fake PARF and COE rebate certificates in November 2000, the suspect apparently sold nine fake rebate certificates to buyers for a sum amounting to more than half a million dollars. Between 2000 and 2004, there were also three other cases of fraud - one involving the use of duplicate log cards that were issued by the LTA and the other two involving the use of alleged forged log cards to transfer or deregister the vehicles without the knowledge of the finance companies or the registered vehicle owners. The amount involved in these cases was about $6 million and the victims were mainly finance and leasing companies.

Sir, with the elimination of the physical log card, as proposed under the Amendment Bill, it will remove opportunities to pull off such log card scams in future. There were also dealers and buyers who deliberately failed to register car transfers, leaving the

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unsuspecting previous owners to be landed with summonses for traffic and parking offences and other obligations of owning a car they thought they had sold. Another unfortunate effect of the present reliance on physical documents is the necessity for the identity cards of the buyers and sellers of the cars to be produced when registering a transaction, thus opening possibilities for abuse of the NRIC by the person it is entrusted to.

Therefore, Sir, I am pleased to note that the electronic service agents, proposed under the Bill, will be able to check and verify the NRIC on the spot before the requested transaction, thus eradicating the need for owners to give their NRICs away to dealers to carry out the transaction.

Sir, I would like to know if the VRLS addresses all the known shortcomings of the present system and whether there are any features of the VRLS that have been specifically designed to do so, particularly in relation to fraudulent transfers as well as non-transfers. For example, will the seller of a car be notified that the transfer to the buyer has been effected or is there a way that he can check and verify for himself? With the introduction of the VRLS, I am concerned whether this new system will have its own inherent vulnerabilities that may invite crooks to devise new methods of abuse and fraud. May I ask what kind of security features will this new system have? The confidentiality of the LTA's assigned authentication code is crucial to the successful operation of the VRLS.

However, I wonder if the man-in-the-street user is able to remember a user name and authentication code that he does not use on a regular basis. I suppose the authentication code is akin to the PIN that many of us use to access ATMs. However, because the code to access VRLS will not be used as often as

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the ATM PIN is used to withdraw cash, there may be a strong tendency for users to write it down somewhere. Once written down, it is possible that the code can be copied and used by others without the knowledge of the vehicle owner. This may not pose much of a problem for transactions such as renewal of road tax. However, for transactions, like the transfer of vehicle ownership, where assets of considerable value are involved, there should not be any room for fraud. How often do we hear that the car in Singapore can cost as much as a home? Yet, property transactions require checks on the intentions and identities of the parties, many times more stringent than that required for vehicle transfers.

Sir, in rolling out the new system, I hope that the LTA will put in place measures to ensure that the person requesting the transfer online is, in fact, the vehicle owner. I hope the Minister of State can enlighten us as to the measures taken to ensure that the system is safe and dependable.

Sir, the Bill also seeks to remove the requirement for heavy vehicle owners and drivers to apply for permits from the Traffic Police to drive their vehicles that are more than 4 metres in height. While I agree that this will save time and effort for vehicle owners and drivers, I wonder whether allowing vehicles that are between 4 metres and 4.5 metres to have free room on our streets will pose a danger to building structures, roadside trees and other road users. Instead of removing the existing permit requirement totally, I would like to suggest that, as an intermediate measure, all owners and drivers of such large heavy vehicles should at least notify the Traffic Police or the LTA of the route that they propose to take and the timing of this trip. This can be done electronically online to save time. So if something happens, at least the authorities have the record of which owner and which vehicle and which driver

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are involved to assist their investigation and prosecution.

Sir, with these comments, I support the Bill.

Mr Low Thia Khiang (Hougang): Sir, I wish to seek a clarification on the Bill. I refer to the new Part VB - Licensing of bus interchange operators. I wonder if the Government intends to tender out the running of bus interchanges to companies which are not bus operators. Section 1110(d) states that when the LTA grants the licence to the interchange operator, it can stipulate the maximum fees chargeable by the licensee to the operator of the bus services. So if fees have to be paid by bus service operator to the interchange operator, these fees will eventually become costs which will ultimately pass on to the consumers and, because of this arrangement, whether the Minister will expect the bus fares to be increased again.

Mrs Lim Hwee Hua: Mr Speaker, Sir, first, I thank Mr Ong Kian Min for his support of the Bill. Mr Ong has rightly pointed out the inadequacies of the present system and the new VRLS essentially has been designed and seeks to address most, if not all, of the current weaknesses. Essentially, with the cessation of the issuance of the physical log cards, forgery and fraud would hopefully be a thing of the past. As he has also elaborated on, there is now no need for vehicle owners to leave their NRICs with intermediaries which, by itself, can lead to a whole lot of abuse if they land in the wrong hands.

Sir, Mr Ong has asked whether there are any inherent vulnerabilities in the new VRLS such that it will detract the system from being safe and dependent. I would like to assure Mr Ong that the new VRLS is designed to minimise risk of electronic fraud through two aspects, firstly, access and, secondly, transaction control. Let

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me just elaborate on these two aspects. For the access control, as I have elaborated earlier on, basically for Singapore citizens and PRs, they would use the NRIC numbers or SingPasses and there will be help and public education on how to facilitate this for those who are not familiar with the process. For foreigners, companies, businesses and entities that are registered with ACRA, or Accounting and Corporate Regulatory Authority, they will be issued by the LTA with a set of user IDs and passwords. So that would be secure as well. Finally, for the motor dealers, and that is really the key part, they will be appointed as the Electronic Service Agents and they will be required to subscribe to NeTrust which, itself, has a two-factor authentication requirement. So on the access front, there will be sufficient security controls.

On the transaction aspects, a PIN, which is referred to as the authentication code in the Bill, will be required for each transaction. So it would not be just one. It would be one for each transaction, and this would also be issued under strict controls. They would be done at the request of the owner over the Internet, or in person, or by duly appointed authorised representative by the owner, and the PIN will be sent to the registered addresses. So it would not be misdirected. This is quite similar to how PINs are being handled for many other systems as well. The transaction PIN will only be required for online transfers, deregistration of vehicles, transfer of rebates and temporary COEs and division of rebates. So as Mr Ong has noted, the non-confidential information would still be based on input of vehicle numbers, for example, information on the expiry of road tax, and so on.

Mr Ong has actually made a valid observation about how members of the public which include us, occasionally or quite often will forget their PIN and may write it somewhere. This is generally an

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issue that is common with all electronic services provided for the public. There will be public education by the LTA. LTA will also provide assistance for those not familiar with using the Internet. They will have over-the-counter services at the different LTA offices as well as now we have, what we call, the Citizen Connect and e-Citizen helpers located at over 20 community centres and clubs. So these are places where members of the public can also get assistance.

Sir, let me now just move on to the other concern that Mr Ong has raised about the changes which will allow vehicles of height between 4 metres and 4.5 metres free room and whether they would pose a danger to building structures and other road users. I would like to assure Mr Ong that the risk is actually minimal as only a very small percentage, in fact, 2% of overhead structures has less than a 4.5 metre height clearance, and most of these are actually height restriction gantry placed just before the MRT viaducts and road structures. Information on these will be gazetted and provided on the One.Motoring website. So owners of such vehicles would know where to look for information and which are the roads where the height restrictions would be. Whilst we agree that notifying the authorities may provide extra protection, on balance, we think that there is sufficient mitigation of risk of collision and we would like to move to a self-regulating regime.

Let me now just move on to Mr Low's two comments. The first is whether the Government, in drafting the regulation of bus interchanges, has the intention to tender out the bus interchange. Sir, the drafting of the amendments serves to provide for as much flexibility as possible. So whilst now these interchanges are all being managed by the bus transport

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operators, we do not rule out that that could be a possibility. Secondly, he asked whether, essentially, the levying of licensing fees would add on to transport costs in future. The LTA intends to only levy a very nominal fee and therefore this should by no means be any imposition in terms of transport costs in general.

Sir, I believe I have answered the questions.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua].

[Mr Speaker in the Chair]

The Chairman: The citation year "2005" will be changed to "2006", as indicated in the Order Paper Supplement.

Clauses 1 to 23 ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.