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March 30, 2008
LTA to consider 'cash back' for scrapped cars
More may choose public transport over cars if policy changes: Transport Minister
By CHRISTOPHER TAN
FOR years, the answer has been no.

Now Transport Minister Raymond Lim wants to know if it can be yes.

He has asked the Land Transport Authority (LTA) to see if motorists can get back cash when they scrap their cars.

By scrutinising this sacred cow, he is showing how serious he is about finding ways to persuade people to give up their cars.

He hopes that some who get their money back - and the amount could run to thousands of dollars per motorist - would choose not to buy a new car and switch to public transport instead.

Since 2003, around 80,000 passenger cars have been scrapped each year before turning 10 years old, with the Government refunding to owners the so-called unused portions of the Additional Registration Fee and Certificate of Entitlement.

People have been known to scrap cars as new as two years old, though most do so only after the vehicles turn five years old.

At present, the refunds come as paper rebates which can be used only to buy another vehicle.

Given the number of vehicles scrapped and the youthfulness of many of the vehicles, a change in policy could see the Government refunding $2 billion each year.

Mr Lim said that the LTA would work with the Finance Ministry to see if the change could be made.

'You have to look at our overall objective - to have a decisive shift towards public transport,' he said. 'So we should look at whether we can have any incentive to help people make the shift.'

He was speaking at the launch of the Land Transport Masterplan, a 101-page paper outlining the Land Transport Review which he announced in January. It called for an overhaul of the bus and train systems as well as major changes aimed at car owners.

Read the full story in Monday's edition of The Straits Times.

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