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  Straits Times Forum 23 Feb 07
Viable alternatives needed to discourage use of cars
Letter from Bryan Goh Yong Leng London, United Kingdom

Singapore has been a world leader in the field of efficient pricing of roads. London has only recently implemented what is essentially an economically equivalent to the system operated by Singapore from 1975 to 1998.

In both countries, the experience has been that road pricing simply displaces traffic around the routes that are charged for. While ERP works to a certain extent, it does not solve congestion as much as it could.

Road pricing systems work only if there are viable alternatives. Singapore has a well-run public transport system. It needs to do more.

Car ownership and use should be discouraged. There are several ways to achieve this. Taxing it to death is one way but the provision of viable alternatives is better.

A private car owner/driver is a very inefficient user of the road. A dedicated driver, whether ferrying a small group (a taxi) or a large group (a bus), is far more efficient. They need to be taxed differentially.

For starters, taxis should pay less than private cars and buses should pay less than taxis.

Roads should be priced based on congestion and the pricing should be updated in real time based on some moving average of the total volumetric flow rate through a particular road. Prices can be posted on websites or on gantries. A moving average allows some lead time for drivers to decide which routes they should take based on relative prices.

In an economy with a growing proportion of expatriates, the value of trains, taxis and buses relative to cars is further enhanced. Many expatriates will not have the time or the inclination to drive. Ownership of a car is an added complexity many would prefer to avoid.

Public transport catering from mass transport to luxury transport, each differentially taxed and priced based on efficiency, should be provided.

The Area Licensing Scheme was a bold move, unpopular at the time but necessary. The benefits, unfortunately, are not always visible until years hence. ERP was a refinement but no less unpopular. Its benefits also are not always immediately apparent.

The Singapore economy is at risk from congestion and it needs to take pre-emptive action.
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