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KEEPING Singapore's roads smooth-flowing is vital to a vibrant and productive economy, said Transport Minister Raymond Lim on Monday.
That's why it would not be prudent to freeze the Electronic Road Pricing (ERP) charges - even in these times of escalating fuel prices and rising cost of living - as this does not mean that the motorists will incur no costs.
'The costs are there except that it is hidden in the form of time lost and extra fuel consumed being stuck in traffic,' he said in Parliament when replying to questions from two MPs who had asked for a freeze in ERP charges until of cost of living for the average Singaporean has stabilised and deferrment of more ERP gantries in view of the rising fuel prices.
'At a time of economic stress, it is important that we ensure that our economy remains vibrant and productive. One critical way to ensure this is to act decisively to prevent our roads from being gridlocked.'
Mr Lim said freezing ERP changes will lead to further traffic build-up on the roads.
The purpose of ERP charges is to manage congestion on the roads as the rates are raised only when traffic demand increases to cause the speed on the road to fall below the optimal speed threshold. For expressways, this is 45kph, and for arterial roads, it is 20kph.
On concerns about the impact of ERP changes on the cost of living, the minister said the Government has reduced road taxes by 15 per cent.
'The increase in ERP revenue is estimated at $70 million against $110 million from the road tax reduction. This means that drivers as a whole are not worse off despite the higher ERP charges,' he told the House.
'Indeed, only 24 per cent of drivers incur ERP charges daily, and the majority who do not pay ERP would be better off as a result of the 15 per cent road tax reduction.'
Mr Lim said if drivers choose to drive less, whether due to higher fuel prices or public transport improvements and traffic speeds improve, the Government will be happy to collect less ERP revenue.
The ERP system is a dynamic, and not static one.
'If the demand for driving falls materially, because of high fuel prices or public transport improvements or both factors, then the ERP rates will either stay as they are or actually go down,' he said.
Citing an example, he said that Land Transport Authority announced in late January that ERP charges would be levied on a total of 18 half-periods for five gantries that would kick in on April 7. But because of improvements in traffic speeds following the announcements, ERP was eventually implemented for eight half-hour periods.
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