Senior Minister of State for Transport Sun Xueling says this is because the drivers are unsecured creditors
[SINGAPORE] Private-hire car drivers whose vehicles were repossessed by creditors of Autobahn Rent A Car “will face difficulties getting their deposits back” because they are unsecured creditors, said Senior Minister of State for Transport Sun Xueling on Wednesday (Jan 14).
In light of this, the government will work more closely with relevant associations to better educate private-hire drivers about the risks and obligations in their rental contracts, Sun said in response to a question from People’s Action Party (PAP) MP Ng Chee Meng (Jalan Kayu SMC) in Parliament.
Ng, who is also secretary-general of the National Trades Union Congress (NTUC), noted that many affected drivers are worried about losing rental deposits of between S$500 and S$1,000 – sums he said are significant to many.
He asked whether measures could be introduced to require large rental fleet operators to ringfence such funds so that drivers’ deposits can be protected in the event of insolvency.
Ng’s question was a follow-up to an earlier parliamentary question from PAP MP Yeo Wan Ling (Punggol GRC), who asked whether large rental fleet owners should be regulated, and how the Land Transport Authority (LTA) would work with tripartite partners to protect drivers if these firms run into financial distress.
The questions from Yeo, who is adviser to National Private Hire Vehicles Association (NPHVA) and National Taxi Association (NTA) and assistant secretary-general of NTUC, come after private-hire rental company Autobahn Rent A Car and its related companies have run up more than S$300 million of debt.
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Recently, creditors repossessed cars from the group, including those that were being driven by private hire drivers.
The group’s application to the High Court for protection against creditors was dismissed on Dec 26 last year. Separately, NTUC is offering help to affected members on contractual matters relating to the Autobahn group.
On Ng’s suggestion to ringfence deposits, Sun referred to her response to Yeo’s call for tighter regulation, saying this could “result in increased compliance burden and ownership costs for private-hire vehicles”, which would likely be passed on to drivers and passengers.
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Even so, she acknowledged the impact that large rental firms can have on drivers’ livelihoods when they run into financial trouble, adding that in Autobahn group’s case, LTA worked with NTA, NPHVA, as well as ComfortDelGro, Grab and Strides Premier to help affected drivers find alternative vehicles and earning opportunities, while those seeking legal recourse were given support.
“Providing such support does not require fleet owners to be regulated,” said Sun.
For drivers who are currently affected and facing financial difficulties, she added that the government will work with community partners to see how best they can be supported.
PAP MP (Pioneer SMC) and NTUC assistant-secretary general Patrick Tay suggested that financial assistance, such as the Ministry of Manpower’s (MOM) short-term relief fund, could be extended to the affected drivers.
Sun said she would discuss the proposal with MOM.
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