Unlike other commodities, you need transportation and home. That is why the government duty is to provide essential needs for the average citizens to function. If public transport is world class, then the more reasons people don't need cars. Cars are for those who really need to spend that money, so what is $100k more. Haha
ERP reduces usage on the targeted road by raising private costs. however ErP is not efficient in the economic sense.
road users avoiding ErP roads incur fuel cost increases whereas road users using ERP roads incur cash payment. either way it becomes more expensive to drive anywhere.
the only benefiting party is LTA... collecting their enormous revenues. did you know LTA had 30 year bonds issued yielding 5% PA ? outrageously high considering it's AAA grade. who's paying? road users!
And we all know that just 1% controls half of the world's global wealth, income inequality is not just an issue here in the Republic of Singapore.
178 Oxfam Briefing Paper (2014-01-20)
Working For The Few: Political Capture & Economic Inequality
You can argue that they should take public transport instead but to them, that is the worse of the two choices. Basically, Singaporeans are left with all lousy choices.... Save up more of your limited income and pay for the COE or give up the car and join the public transport.
I don't believe that there is no good way around current high COE prices because LTA basically has not done anything. Below are the suggestions given up during the last year's consultation.
1) Change COE to pay as you bid, closed auction system. Now people pay the lowest successful bid. Favours people with deep pockets as there is nothing to stop people to overbid as they always pay the lowest bid.
2) Remove dealer bidding. Car owners has been asking this for YEARS and YEARS. LTA says there is a "choice" and you can bid yourself. During the feedback session, the officer was surprised to know that the cars price will be higher from the dealers if we bring our own COE. They thought it will be lower because the dealers don't have to do the bidding (less work for dealers). That is how detached LTA is from the ground. Of all the suggestions, this one should have been done long ago as there is just no good reason NOT to implement it. Almost ALL the car buyers WANT this suggestion. The dealers themselves "say" they are ok with it as they don't "profit" from COE swings.So what is stopping LTA from implementing this??????
3) Add a COE category that pays 10x or 20x ERP. Basically a car that should not be driven during peak at expressways. That gives an option for Families with old people or young children who need transportation in their neighbourhood during off peak.
Is is not that there is no good ideas, just LTA chose the easy way out.... which is basically do nothing.
Last edited by dniwkh; 23rd March 2014 at 07:54 AM.
Another positive side effect of this could be: car sharing. It works so well in many other countries, only people here must have their own car, own seat ..
1994 I have seen car sharing already in Germany with 3 people from the same village and working in the same location took turns in driving. They reduced the annual mileage for their cars and two of them could have a nap on the 1h drive to work. Seems Singapore needs to reinvent the wheel again ..
If people are not happy with high COE, put a cap on it with higher usage controls or scrap the Quota System with full usage controls.
That's because the car is so expensive!! It's the 2nd most expensive item after a HDB.
Canon 30D, G11, 50 f1.8II, 10-22 f3.5-4.5, 24-70 f2.8L, 70-200 f2.8L IS, EX580II