Damn. Where was I when this thread started.
ERP certainly by no means reduces the traffic problem as the total
number of cars on the road remain at least the same. Truth be told,
the total number of cars on the road are actually increasing every
year.
The only thing the ERP really achieves, apart from the obvious
filling of government coffers, is that it eases a little traffic
from implemented zones. This, at the expense of the smaller roads
that, under current ERP implementation, are deemed not obstructive
to the business district.
Recently, they wisened to the fact that as a result of the ERP,
traffic congestions were occuring in the areas immediately
sorrounding "town", like redhill and kallang. Thus ERP is being
implemented on those roads too.
What would be the eventual end of this as the number of cars keep
increasing? We find that ERP will have to be implemented on several
other roads as soon as people find another way to bypass the
ERP.
While I won't be quick to say only the rich benefit from this
arrangement, the folk who are headed to town for work usually are
able to claim the ERP back from their bosses, the big multinational
companies. Which DOES leave the poorer non-town folk with lesser
choices for roads.
My conclusion is that ERP is a temporary road-diversion solution
which in the longer run has to be implemented on all the roads,
because of the "pushover" effect. What we are left with effectively
then would be "taxes" of sorts but no solution.
What would genuinely reduce the traffic problem? And what are the
side effects?
1. People take public transport.
This certainly is the ideal. The slight side-effect would
definitely be the increase in costs for public transport as the
public transport companies scramble to increase their fleet.
Greater business costs and sharp demand for public transport would
cause prices to increase at least twofold, which translates to some
$1-2 extra per trip. Fuel prices can also be expected to increase
due to the drop in consumer demand for petrol as there are less and
less car owners. The amount is a small price to pay. Estimating a
daily return trip at $6, this would translate to $180 monthly per
commuter. Still better than paying $700-$900+ a month for a
car.
There is a slight problem with this arrangement. Transport past
midnight will be completely dependable on taxi services as no one
wants to pay $700 a month for a car they can only use at
midnight.
I hope there wont be additional costs as a result of 24 hour
operations or increase in demand for taxis past midnight.
SBS, SMRT, Comfort DelGro, and their majority stakeholder Temasek
Holdings will have some planning to keep costs minimal.
2. COEs are not given out as readily as they are now.
The government intervenes by not allowing as many cars to be sold.
The great demand for COE, would most certainly push up COE costs to
the ceiling. The drop in the number of applications for COE will
certainly pose a recorded drop in the government coffers. Our
economy will also lose out on the revenue that these car companies
generate. Cars become a luxury item and everyone else will have to
use the public transportation system which will have to adapt
itself to cater to the greater demand. Revenue generated through
Road Taxes will also suffer. This scenario seems very uneconomic,
the only respite is the public transportation scene.
Considering the choice of ERP over the alternative methods
presented here.
ERP is easy to implement and is a source of revenue. Singaporeans,
being who they are will continue buying cars as cars have become a
status symbol of sorts and also a convenience. COE and Road Tax
revenues don't decrease.
People will also choose public transport over driving their car to
work, never mind they having paid for it. They'd drive the car
after work hours. After all $180 a month for transport still beats
the $200-$300 for petrol costs. And less headache. The only minute
difference is that the money goes to Temasek Holdings, rather than
the MNC petroleum companies.
As a result, every economic sector makes money. The public
transportation sector sees an increase in demand. Temasek Holdings
shares will do well. The COE and Road Taxes keep coming in.
It makes economic sense. Us? We can work till 65 to pay every loan
we've taken. While the government helps invest our money in CPF for
us, returning us part of the investment profits when we die.
Frankly why do we even bother thinking about it all. They've got it
all planned out for us.