Written Answer by Minister for Law, Mr K Shanmugam, to Parliamentary Question on Extension of Relief under COVID-19 (Temporary Measures) Act

04 JUN 2020

04 Jun 2020 Posted in Parliamentary speeches and responses

Mr Patrick Tay Teck Guan (Member of Parliament for West Coast GRC)

Question
To ask the Minister for Law whether relief under Part 2 of the COVID-19 (Temporary Measures) Act 2020 can be extended to cover rental agreements between vehicle hire companies and private hire car drivers.

Written Answer:

  1. The COVID-19 (Temporary Measures) Act 2020 (the “Act”) provides temporary relief from legal action for those who are unable to perform certain contracts as a result of COVID-19.

  2. The Government has studied the possibility of extending temporary relief under Part 2 of the Act to rental agreements between vehicle hire companies and Private Hire Car (PHC) drivers, but has assessed that this is not necessary for the time being.

  3. Part 2 of the Act imposes a moratorium on legal action, so that parties have time to negotiate and work out their differences. However, this does not, in itself, address the substantive decline in earnings faced by drivers during this period. To this end, the Government has been working closely with the taxi and PHC operators, the National Taxi Association (NTA), and the National Private Hire Vehicles Association (NPHVA), to provide targeted relief for drivers. The current package of relief measures includes cash grants, initiatives by operators, creating supplementary sources of income for drivers, and providing upskilling opportunities for drivers to move into adjacent sectors.

  4. For instance, the LTA has worked with tripartite partners to launch the Point-to-Point Support Package (PPSP) to support drivers who have seen their livelihoods badly affected. Through the PPSP’s Special Relief Fund (SRF), active PHC drivers can receive up to $10 per vehicle per day (or $300 per month), until 12 October 2020.

  5. Apart from the SRF, PHC drivers can also draw on the Self-Employed Person Income Relief Scheme (SIRS) which provides eligible persons with $1,000 per month for nine months (or $9,000 in total).

  6. All in all, under the SRF and SIRS, drivers can receive up to $1,300 of Government support per month in support to tide them over this challenging period. This is in addition to the Solidarity Payment, and other cash payouts announced under the enhanced Care and Support Package.

  7. The Government also notes that some PHC operators and rental companies have stepped forward to offer rental waivers and discounts on commission fees.

  8. To enable drivers to supplement their income, LTA has also temporarily allowed drivers to deliver food and groceries. To date, more than 10,000 drivers have taken on deliveries, and this has helped to cushion the fall in ridership earnings. LTA will continue working with tripartite partners to help drivers.

  9. Support is also available for drivers who are looking to upskill and move laterally into adjacent sectors, or into new sectors. Under the Self-Employed Persons (SEP) Training Support Scheme, SEPs can receive up to $10 per hour when they attend approved courses.

  10. To sum up, the Government has been working closely with tripartite partners in the PHC ecosystem to come together and share the burden in an equitable manner. For now, the Government has assessed that legislative intervention is not necessary. We will however continue to monitor the situation, and make changes if necessary.

Last updated on 04 Jun 2020