Requirement for Shared Bicycle Service Operator’s Financial Viability for Licensing Application

14 Assoc Prof Walter Theseira asked the Minister for Transport (a) whether the Government takes into account a shared bicycle operator's ability to meet financial obligations to staff, vendors and the public when considering licensing status; (b) when a licence is cancelled, whether any monies from security deposits and licence fees are made available for claims by vendors, employees and the general public; and (c) if so, what order or process shall apply to determine claim entitlements.

The Senior Minister of State for Transport (Dr Lam Pin Min) (for the Minister for Transport): Mr Speaker, the Land Transport Authority (LTA) requires applicants for full bicycle sharing licences to submit audited financial statements for review and considers their financial standing when granting licences.

The licensing framework for bicycle-sharing operators focuses on regulating the indiscriminate parking of shared dockless bicycles. The licence fees which LTA collects from the operators are meant to cover regulatory costs, so that these costs are not passed on to taxpayers. The use of the security deposits is restricted to specific circumstances stated in the Parking Places Act. These are: serving as surety for an operator’s compliance with licence conditions or standards of performance, meeting any unpaid financial penalties imposed on an operator, and recovering the costs incurred by LTA in removing and disposing of bicycles, should an operator fail to do so after its licence has been cancelled. If none of these circumstances arise, LTA will not make a claim on the security deposit.

While the security deposit and licence fees may not be used to repay private debts, vendors, employees, companies and consumers who are owed monies by the operators have other recourse. Companies and consumers with claims against any operator can seek redress through the civil courts, while the employees can also approach the Tripartite Alliance for Dispute Management for assistance to resolve their salary disputes.

With Speaker's permission, Assoc Prof Walter Theseira asked a supplementary question to Question No 14 after Question No 15 had been dealt with.

The following question was moved earlier –

Assoc Prof Walter Theseira asked the Minister for Transport (a) whether the Government takes into account a shared bicycle operator's ability to meet financial obligations to staff, vendors and the public when considering licensing status; (b) when a licence is cancelled, whether any monies from security deposits and licence fees are made available for claims by vendors, employees and the general public; and (c) if so, what order or process shall apply to determine claim entitlements.

Mr Speaker: I would like to provide a bit more airing on Question No 14. Assoc Prof Walter Theseira, do you want to follow up?

Assoc Prof Walter Theseira (Nominated Member): Mr Speaker, thank you for your indulgence. I first have a clarification. First, I just want to clarify from the Senior Minister of State that regarding the security deposit, other than statutory purposes laid out in the Parking Places Act, is the Senior Minister of State saying that any remaining sums will be forfeited into the Consolidated Fund and will not be available to any private claims? I just wish a clarification there.

Then, I have a supplementary question in general. As we know, this is a regulated activity which forms an important first- and last-mile link in our public transport system. So, I just want to clarify that stakeholders, the public, would have expectations that the licensees have been scrutinised by the Government and because of those expectations, I wonder if the Government could consider whether it can at least protect, for example, the employees and the commuters who perhaps have a greater expectation that the licensee has been properly regulated than perhaps the vendors who are commercial companies engaging in business-to-business transactions with their eyes open.

The Senior Minister of State for Transport (Dr Lam Pin Min): Mr Speaker, I would like to thank Assoc Prof Walter Theseira for the supplementary questions. I think the answer to the Member's first question is correct: the remaining sums will not be available to private claims. Based on the current Parking Places Act, the purpose is as laid out in the reply that I have alluded to just now.

With regard to the Member's subsequent question, we have started this licensing regime for bicycle sharing operators very recently. In fact, we have only started this for a couple of months and we are actually looking at how this will pan out. The main purpose of this licensing regime is to manage the indiscriminate parking situation that we have faced in the past. If you look at the current situation, since the implementation of this licensing regime, there has been some improvement. But we are still closely monitoring this situation. And we hope that, with time, we will be able to see whether we need to make adjustments in order to accommodate what Assoc Prof Walter Theseira has suggested.