The End of Cheap Driving

When I read today’s Brunei Times, 2 things came to my mind. One, suddenly Bruneians are creative in their policy-makings and two, could this be the end of cheap car driving in Brunei?

First, it was the reduction in the fuel subsidy and now it’s the (possible) introduction of some sort of congestion charge. Although the 2 policies will affect the usage of cars, the way I see it however, they are not related to one another (which again show the lack of coordination among ministries). The objective of the first is more or less to reduce government expenditure while the second is simply to reduce congestion. While I agree with the former policy, I am quite unsure about the latter.

Well, firstly I think the timing is not quite right. I wouldn’t be surprised if people in Brunei would react negatively if the 2 policies were to be implemented at the same time. Secondly, I question whether congestion fee really is the most effective way to alleviate the congestion problem. Why? Well for one thing the traffic is only worse at certain time of the day, which is when schools end. So, why not introduce an effective school transportation? A subsidised privatised service if you will. It will not only help reduce congestion during the peak hours but also help increase employment and will surely push up the transportation industry.

By levying some congestion fee, to me does more harm than good. First, the fee doesn’t care who you are and what you do in the area. This may have negative effects not only on the business activities in the area, the local environment but also on the income distributional factor (i.e. whether you are rich or poor, you will be charged equally!). Secondly, I think the implementation and the enforcement of the system will be quite costly and complex and that leads to the question, is it worth it to devote our limited resources into checking cars which do not pay the congestion fee just because the drivers (parents) are collecting the children from school?

Now, because Brunei is quite unique (read ‘rich’) where the ratio of car to people is 2:1 then why not simply introduce some sort of progressive tax. For example, you tax each additional car a person buys (the first car would be tax free of course). This I believe, would also have a distributional effect. Richer people (who buy lots of cars) will be taxed more. The revenue can then be used to improve the roads and the road system.

Oh well, I don’t know. What I can say for now is that I am not keen with the proposed congestion charge. I personally think, it is not the right time. I also implore, please… let there be some sort of coordination among the ministries and departments. Get the same objectives with more synchronised policies.

Salaam.