THE possibility of punitive electronic road pricing (ERP) charges in future to avert peak-hour gridlock was highlighted by Minister Mentor Lee Kuan Yew on Friday.

He said that was why the Government is investing billions of dollars on new MRT lines and expressways to make sure Singaporeans have alternative travel options.

Speaking at an Institute of Policy Studies seminar on Singapore's future, he revealed that the Government had even considered cutting car growth from the current three per cent to zero per cent.

On the behind-the-scenes discussions leading up to the recent transport policy changes, he said: 'Shall we reduce it, next lot from 3 per cent to 2 per cent or 2.5 or 1 per cent or zero and cap the thing? Oh, there'll be a public uproar.'

'So ding dong, ding dong, feedback from all quarters, says all right, 1.5 per cent growth. But 1.5 per cent growth, if it goes on six, seven years, when your expansion of roads is less than 1 per cent, you are into another gridlock.'

'So your ERP will have to become punitive to clear the roads at peak hours,' he said.

He was referring to the Government's announcement on Wednesday that it would halve the annual rate of car growth from 3 per cent now to 1.5 per cent next year, as part of an overhaul of land transport here.

'So finally we decided, never mind, build this tunnel, North-South (highway), build more MRT stations... so that there are alternatives for everybody, which means massive investments.'

Read the full story in Saturday's edition of The Straits Times.