Yesterday's move, which surprised some observers, came as COE premiums crossed the S$90,000 mark in two categories at the last bidding exercise two weeks ago.
Mr Lui was asked if it would be possible for the Government to increase the supply of cars, as the public is faced with a likely cut in COE numbers while improvements to the public transport system would take time to kick in.
In response, Mr Lui said he has tasked the Land Transport Authority (LTA) to study if more flexibility can be introduced through two measures.
The first involves a possible delay in implementing a vehicle growth rate cut to 0.5 per cent in August, from the current 1.5 per cent.
The second will be to examine if the claw-back of COEs - which counters an oversupply of COEs due to over projections in vehicle de-registrations between 2008 and 2009 - could be deferred.
The LTA is expected to complete its study on the possible measures by the end of this month.
Motor Traders Association (MTA) president Cheah Kim Teck felt yesterday's announcement was "fully understandable". "Consumers have felt that the move (to cut COEs) is too drastic, especially since the public transport system is not ready yet," said Mr Cheah, who is also motor operations chief executive of Jardine Cycle & Carriage.
Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, felt the possible measures may "improve the situation", but may not reverse the high COE premiums. This would be dependent on the backlog of orders on motor traders' books, he said, with two tender exercises scheduled for this month.
The key in determining the future COE quota, Mr Lim felt, would be the number of vehicles taken off the roads. If there was no significant pick up in de-registration numbers, it would result in a drop in the number of COEs available, he added. The number of vehicles taken off the roads in recent years, however, has headed south - from 81,555 in 2007 to 36,980 last year.
Mr Lui, who first signalled a curb in vehicle growth rate last October, had explained during a community dialogue last month that the high COE premiums were due to the economy doing well, and not because the Government is further slowing the growth in the vehicle population.
Assistant Professor Eugene Tan, a Nominated Member of Parliament, felt the COE price could be viewed as Singaporeans' measure of the satisfaction of the public transport system, as car ownership presents the transport aspiration for some. "It makes one wonder if schemes such as ERP (Electronic Road Pricing) and promotion of public transport are working to control car ownership?"
Yesterday, Mr Lui also assured Singaporeans that the Government and train operators will spare no effort in making the rail system more reliable. "However, this is not a one-time or one-year effort, and I ask for the understanding and patience of commuters as we systematically put this right," said the Transport Minister.
When asked how SMRT's estimated S$900 million plan to upgrade existing assets will be split, Mr Lui replied that LTA and SMRT are going through the details and "making sure that each party is paying its fair share of the cost".
On whether the costs will eventually be passed on to commuters in the form of higher fares, Mr Lui said fares are determined by the fare adjustment formula, which is being reviewed. Fares will not be adjusted this year while the review is underway.
ORIGINAL SOURCE
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