Businesses, motorists will be worse off in long run if ERP eased
By Imelda Saad, Channel NewsAsia | Posted: 14 July 2008 1858 hrs
SINGAPORE : Easing up on congestion charging on Singapore roads will be detrimental to both motorists and businesses in the long run, according to Transport Minister Raymond Lim.
His comments on the Electronic Road Pricing (ERP) followed complaints by motorists and businesses over higher ERP charges and added gantries.
New gantries along the Singapore River were put up a week ago. Mr Lim said initial reports have shown that traffic speeds have gone up and vehicle volume has decreased.
While some businesses within central Singapore, like in Clarke Quay, have argued that it is driving customers away, Mr Lim noted that not having ERP will be even more detrimental to retailers.
He said, "If you look at the experience in London, they have the same concern - the retail establishments. But after congestion charging was put in, their business over time actually improved. It became easier to get into London, to the restaurants there, to shops there. Similarly, the experience we had in Orchard Road was the same."
And on comments that evening ERP charging is taking a toll on family life, Mr Lim said the alternative would be to get stuck in traffic and still end up getting home late.
He said, "I think the critical decision for us as a people is that whether as a people we are willing to take sometimes difficult decisions, painful decisions, that we know will benefit Singaporeans as a whole. Or do we postpone difficult issues, difficult measures, do the popular thing and store up bigger trouble for ourselves in the future.
"We have not taken the populist road. We have said if this is the right thing to do and the situation calls for it, we would do it and in the case of congestion charging, I know it's difficult, it's an unpopular measure, motorists who are affected are unhappy, but it is something that is necessary - something that we will do so as to ensure that Singaporeans continue to enjoy living in a city, in a garden, and not a city in a carpark!"
The reality is that as cars try to avoid ERP, other roads get congested and more gantries are put up on arterial roads. So really there is no avoiding ERP.
The Transport Minister said the alternative is to take public transport.
The next phase of electronic road pricing will also see vehicles fitted with new In-vehicle Units (IUs).
The new devices are smaller and reflect not just the amount deducted from one's CashCard but also one's CashCard balance.
The dual-mode IUs will be fixed on new motorcycles starting next month, while new cars, taxis and other vehicles will have the device fixed from early next year. The cost of the new IUs is S$150, the same as the current ones.
Owners of existing vehicles can continue to use the old IUs. Motorists who wish to change to the new device may do so at LTA (Land Transport Authority) Authorised Inspection Centres. They will have to bear the full cost of replacing the IUs.
A next generation e-payment system for public transport is also coming up. All new stored-valued cards are expected to be made Contactless ePurse Application (CEPAS)-compliant.
These new generation smart cards will allow for automatic top-ups, so one will never be penalised for having insufficient funds in one's CashCard.
Funds can be deducted from various payment modes - for example, through GIRO or credit card.
Some 10,000 frequent public transport users will test out the new EZ-Link CEPAS-compliant cards between mid-August and mid-October.
Meanwhile, LTA will be extending the Expressway Monitoring Advisory System (EMAS) to 10 major arterial roads. This is to be phased in over the next four years.
A study has shown that EMAS has been effective in cutting delays on expressways, with average time savings of 24 minutes per incident. The shorter delays translate to cost savings of about S$40 million a year. - CNA/ms
