| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: Transport Minister Lui Tuck Yew said there is no need to re-regulate taxi fares as there is sufficient competition in the industry.
However, Mr Lui said the ministry will look closely at the quality of service and see what needs to be improved.
Mr Lui was responding to Non-Constituency MP Gerald Giam's parliamentary question on how the government ensures there is sufficient competition among taxi operators.
Mr Lui said the objective of deregulation was to allow market forces to determine the supply of taxis and the pricing of taxi fares that best meet the demand for taxi services.
He added that the industry has become more vibrant with the entry of new taxi companies into the market.
Mr Giam asked: "The fact remains that each time ComfortDelGro raise their fares, all the other companies follow suit. So does the minister agree that this is a clear indicator that there is insufficient competition in the taxi market? And if so, in the absence of competition, will MOT (Ministry of Transport) consider reintroducing some form of fare regulation?"
Mr Lui said: "It is a good question but it is also the behaviour that extends beyond the taxi industry.
"So for example...for those of us who drive, we find it somewhat coincidental that when petrol prices go up, they sort of go up across the different companies - Shell, Esso, Caltex and so on. And I think the Competition Commission had actually investigated and explained this in the past.
"And there is good economic explanation for such behaviour. ComfortDelGro, I think, now has more than 50 per cent of the market share, dropping from 80+ in the past. We now have more players in the industry but I think they also in a sense draw reference from the behaviour of the market leader. So there is a certain harmonisation in that sense of the fares over time."
Separately, MP for Marine Parade GRC Tin Pei Ling wanted to know whether the Transport Ministry will consider defining peak periods.
Mr Lui replied that this is determined by market supply and demand of taxis at different time periods.
Ms Tin said: "A lot of Singaporeans felt the definition of the peak period surcharge has been exaggerated. Therefore, I would like to ask if the ministry will consider, if not defining peak periods. Will there be other levers put in place so as to prevent exaggeration or irresponsible changes to cab fares?"
Mr Lui said: "Rationale behaviour would be such that the driver would pick the best time to drive the taxi. And for him, the best time is in a sense the gains, the revenue he could derive as a result. And hence with the peak period in the past stopping at 8pm, there was a lot of feedback on the difficulty of getting a taxi, including call bookings and hence that was one of the main reasons why the taxi companies, starting with ComfortDelGro, decided on the need to extend the peak surcharge period."
Additionally, Mr Lui said there has been an improvement in waiting times for taxis in the one month since fares were revised in December. He said that's partly because passenger numbers have fallen as a result of the recent fare revisions.
More cabs are also on the roads after peak period timings were adjusted.
The Land Transport Authority said waiting times have been cut from nine to five minutes in the city area and at key taxi stands between 12 December and 8 January, and from four to two and a half minutes outside the city.
- CNA/ck
|
