Vehicle growth rate to be cut to 1 per cent next year, and then 0.5 per cent in 2013 and 2014

The Government has cut vehicle growth rate from the current 1.5 per cent to 1 per cent next year, and will further lower it to 0.5 per cent in 2013 and 2014.

Writing on his Facebook page this morning, Transport Minister Mr Lui Tuck Yew addressed concerns that the revision will lead to sharply higher Certificate of Entitlement (COE) prices and greatly reduced quota.



Mr Lui believes the graduated changes and the expected increase in the de-registration of vehicles, should result in relatively stable quota numbers over the next one year or so. He said if de-registration trends remain generally stable, then it is likely that there will be a higher quota from 2013 onwards.

Mr Lui said he understands the aspirations of those who want to own a car. But the hard reality is that while the Government will build more roads, Singapore cannot build its way out of the traffic congestion problem as there is a limit to competing demands for land.

With more car ownership, he said there's a need to take more stringent measures to restrict car usage, such as through much higher ERP charges. As such a balance is needed and that is to rely on both our COE and Electronic Road Pricing (ERP) policies to better manage road congestion.

On suggestions to restrict the number of cars per household, Mr Lui said every family has their own needs - some have young children while others may have members with mobility issues. He said it would be difficult to determine who has the more pressing need.

ORIGINAL SOURCE

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