28 July 2012
Editor, Voices
Today Paper
Today Paper
I agree with the decision of the Land Transport Authoirty (LTA)
to take taxis off the bidding system for the Certificate of Entitlement (COE).
to take taxis off the bidding system for the Certificate of Entitlement (COE).
This bidding system which was introduced to control the growth of the
vehicle population has also produced erratic and undesirable results.It has
also given opportunity for speculators, mainly car dealers, to profit at
the expense of consumers.
Several attempts were made over the years to tweak the system to
address the undesirable outcomes. It is time to look into the underlying flaws
of the system and to look for a better alternative.
I suggest the following approach:
- The COE prices should be fixed by the LTA taking into
account the supply and demand - If the demand for the COE exceed the supply, the COEs will be
allotted by ballot. - To prevent speculation, any transfer of COE within one year
should be subject to payment of a fee
Let us have responsible people make the judgement on the appropriate COE
price, rather than leave this matter to the vagrancy of the market and
speculators.
Tan Kin Lian
UPDATE
Read this view by Chua Chin Leng
http://mysingaporenews.blogspot.sg/2012/07/when-tolerance-becomes-unbearable.html
5 comments:
Wan COE prices to come down from lofty heights? Wait a few years more, before GE 2016, something would come up.
Meanwhile, for small businessmen, renew your commercial vehicles for 5 years only, the pain is lesser by half, or buy second hand.
Calm ourselves down first, while looking at stupid Govt officials, whose hat is too big for their airy empty heads. No use bursting our blood vessels for such people.
Owning a vehicle is akin to owning a horse in the old days.
A man is as dignified as sitting on a pure bred horse, high and looking down at others.
This human psyche has not changed since humans began domesticating beasts of burden. Even riding on an ox was far better than walking.. it displayed your wealth.
With a monthly salary, a wage earner would want to display his earning capacity and by proxy, the car ( horse ) is the most visible. A home is not mobile, you cant carry it to the office to show off.
Women are attracted to displays of wealth as it indicates that the man has that earning power.
It also allows her to be fetched around without sweating and wobbling on high heeled shoes.
Market segment would of course be people between 20 and 40 years.. young, independent, trendy and no laundry to do or babies to look after.
Keeping money in the bank or investing it elsewhere is not visible to peers.
A car, a car! oh! give me a car!
at any price! I want a car!
I can fetch my girlfriend, I drive to the country in Malaysia!
I can drive to hard to reach places like Sungei Buloh and watch the birds. I can drive to Sentosa! I can enjoy the open highways...
.. then, reality strikes.. LTA fine, HDB fine, URA fine, bird droppings, scratches, high fuel prices, high parking charges, ERP, traffic jams, wheel alignment out, pay for GPS apps, aircon gas leak, tyre pressure checks, friends use you as taxi driver....
Period. COE bidding should only confined to car buyers directly. No dealers are to influence or recommending the amount on the bid. Anyone caught so would be disqualified for the next 3 bidding exercise. I'm confident most perspective buyers would have the interests to pay lowest price as they do not need to register that many cars as the car agents or dealers
Trains = public transport = No need COE.
Buses = public transport = No need COE.
Aeroplanes = public transport = No need COE.
taxis = public transport.
So why do we need COE?
We need COE because the Govt has pointed out that "Singapore is small and car conjestion is no good for business."
So COE is a solution to balance supply and demand. Low demand, low COE and high demand, high COE.
COE also helps to collect extra money legally. If 3,000 cars sold this month with a COE of $50,000, Govt made $150 million in a month.
COE also generate ERP. If there are 500,000 cars and paid $2 a day for using ERP, it is $1 million a day and that will be $30 million a month. In total, conservatively, Govt collects close to $200 million a month during this low period of COE supply.
Now you know why S'pore Ministers deserved World's best salary because they know they can get from motorist about $2,400 millions a year.
Don't forget about the petrol tax of $0.40 for every litre you fill in your car.
The COE,ERP,Petrol tax system is a gold mine which helps to pay lot of things. So why change it when it is giving Govt good money...
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