Supporting Drivers' Livelihoods

Oral Reply by Senior Minister of State for Transport, Ms Sun Xueling

Ms Yeo Wan Ling asked the Acting Minister for Transport

a.          whether the LTA should consider regulating owners of large rental car fleets, given the impact on private-hire drivers’ livelihoods if these car rental companies were to undergo financial distress or insolvency; and

b.          how will the LTA work with tripartite partners, including the National Private Hire Vehicles Association, for an orderly transition and to safeguard drivers’ livelihoods in such circumstances.

Reply by Senior Minister of State for Transport, Ms Sun Xueling

1.          We are deeply sympathetic towards the plight of drivers who are affected by the Autobahn business failure.

2.          We recognise the impact large car rental companies have on drivers’ livelihoods when such companies become financially distressed or insolvent. That is why, when the Autobahn situation happened, the Land Transport Authority (LTA) worked swiftly with the National Taxi Association, the National Private Hire Vehicles Association and the point-to-point operators to help affected drivers secure other vehicles and earning opportunities. If drivers wish to seek legal recourse, the National Trade Unions Congress also has a legal clinic to provide legal advice to members, including on contractual issues.

3.          Providing such support does not require fleet owners to be regulated. Regulation can result in increased compliance burden and ownership costs for private hire vehicles, which could likely be passed through to drivers and passengers.