Rationale for Recent ERP Rate Increases

Sir, Electronic Road Pricing (ERP) rates are reviewed every quarter, as well as during the June and December school holidays every year. On expressways, rates are adjusted generally by $1 when traffic speeds fall outside the optimal range of 45km/h to 65km/h. Speeds at two locations on weekdays – the southbound Central Expressway (CTE) after Braddell Road from 7.30 am to 8.00 am, and the westbound East Coast Parkway (ECP) from 8.30 am to 9.00 am had been falling, and were below 45km/h in the current quarter. ERP rates were, therefore, adjusted upwards by $1 at these two locations.

The ERP revenue that will be collected is dependent on the number of motorists who choose to continue driving on these routes within these time slots. However, let me stress that the aim of the ERP is to manage congestion, and not to raise revenue.

No reduction in road tax is planned as the ERP rate increases are a routine adjustment in response to the latest traffic conditions. Our public transport system is able to cope if some of the affected motorists switch to public transport.

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Thank you, Sir. I have two supplementary questions. When ERP was introduced years ago, Minister for Transport at that time said that it is not for revenue generation, therefore, the road tax will be adjusted accordingly. So, with the revision of the ERP upwards, we will expect revenue to increase. Why is it that there is no reduction in the road tax?

Question number two, increasing the ERP to $4.00 along CTE is quite a shock to many of my residents who use CTE every day. This is especially so because CTE has just been expanded – additional lane added. Why is it that the Ministry needs to increase the ERP? Are there any plans to scrap the evening ERP along CTE?

Perhaps, let me put the situation in perspective. Sir, if I were to look at what has happened over the last two years, from 2011 to the end of 2012. There were 11 ERP rate decreases, and eight ERP rate increases. If I were to take into account the reduction in hours in the evenings along the CTE, the Singapore River Line, the Saturday ERP, there have been 25 ERP rate decreases over the past two years. These are accounting for half-hour blocks. So, that is number one.

Number two is that along the CTE, if I look at the entire stretch, southbound, at the start of 2011, from 7.30 to 9.30 in the morning, the ERP rates were between $1.50 and $6.00. Now, even with the latest increase, for the same period, they are $1.00 to $5.00. I think that puts a certain perspective to the increase. And we must remember that, taken over the extended period of time, there were actually more decreases than increases.

The last is that I hear the call to scrap the evening ERP altogether, but we want to also make sure that we provide options to people who would like to have a smoother travelling experience in the evening. And if you look at what has happened over the past year, since the changes to the ERP, during the period before 8.00 pm, you actually had an increase in traffic speed northbound along the CTE and, after 8.00 pm, particularly from 9.00 pm onwards, you actually had the speeds coming down. So, I think shortening the hours preserves the option that for those who want to have a smoother ride home, they can pay the dollar, use it before 8.00 pm; for others who choose not to do so, they can ride after 8.00 pm.

I would like to ask the Minister whether he is encouraging residents to go back after 8.00 pm.

I am offering a choice to residents.

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