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  Straits Times 17 May 07
26,000 old vehicles stay on the road, slowing green drive

Cheap COEs lead to extended presence of diesel vehicles that would have been scrapped By Senior Correspondent, Christopher Tan

MORE than 26,000 commercial vehicles that might have been scrapped are now staying on the road for another five to 10 years, a setback in the drive towards reducing Singapore's air pollution caused by vehicle emissions.

The problem started back in October last year, when a stricter emissions standard for diesel vehicles - called Euro IV - was introduced here. From Oct 1, all new diesel vehicles sold here had to comply with the standard, which cuts the amount of hazardous fine soot emissions by up to 70 per cent.

The trouble was, after the standard came into effect, there were not enough Euro IV-compliant vehicles here to meet demand, resulting in a crash in certificate of entitlement (COE) prices.

For six consecutive tenders between December and March, the COE premium for commercial vehicles sat at $1. Since the COE renewal fee is based on a three-month average of COE premiums, renewal rates plummeted as well.

With few new vehicles available, owners of older vehicles have each paid as little as $43 to extend the lifespan of their vehicles. In March, 21,965 such COEs were renewed, 100 times more than the average monthly renewal rate in recent years. Last month, 4,402 followed.

The renewal fee for March was $86 for a 10-year extension, while last month, it was $183. In January, by contrast, it was $3,065. The Land Transport Authority had to set up an additional counter to process the long queues.

But the phenomenon did not surprise the industry. Motor Traders Association president Chia Yong Sian said: 'It is only natural for businesses to take advantage of the low fee to save cost.'

Mr Chia was among those who tried in vain to persuade the Government to delay the implementation of Euro IV because many Japanese manufacturers could not meet the October 2006 deadline.

The National Environment Agency, however, has long insisted that the COE plunge was because of 'market forces'.

Scrap dealer Steven Goh, 43, said he paid the renewal fee for three Nissan Cabstars that were between seven and nine years old. He said he originally wanted to buy new Cabstars, but none was available.

The downside to using the old vehicles, he noted, was the difficulty in passing a new vehicle inspection regime. 'It's tough. One of the trucks had to go back three times before it passed,' he said.

Diesel vehicles now undergo tests that enable emissions to be measured under real driving conditions. Previously, they were taken when the vehicles were in neutral gear.
links
Euro IV emissions standards: issues
Straits Times 20 Jan 07
Greener cab ride comes at a higher price
Crash in COE price may slow green efforts
Was move to new emissions standard too early? Motor traders say yes, as the lack of enough Euro IV-compliant models has hit business, but NEA disagrees.
The drive towards cleaner air with cteuro package

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