The Ministry of Transportation and Communications (MOTC) said yesterday it was negotiating with Far Eastern Electronic Toll Collection Company (FETC, 遠通電收) to provide free on-board units (OBU) to motorists.
The proposal is part of the ministry's plan to implement a new freeway toll collection system by 2012 that charges motorists by the distance they travel rather than by the number of toll booths they pass.
The plan generated discussion at the legislature's Transportation Committee, which was set to review budget allocated for the Freeway Construction Fund for the next fiscal year.
Chinese Nationalist Party (KMT) Legislator Luo Shu-lei (羅淑蕾) asked if the ministry would compel those who only drive on freeways once a year to install the OBUs if it starts charging motorists by the number of kilometers they drive.
She also asked what the government planned to do with those who refuse to buy an OBU.
Lee Thay-ming (李泰明) said the ministry would offer motorists alternatives, including OBS rentals or asking motorists to pay before they hit the road.
The electronic toll collection (ETC) system was introduced in February 2006 and currently has more than 900,000 users, a Central News Agency report said.
FETC sells the on-board units for NT$700 each, lower than the government-suggested retail price of NT$1,199.
Asked about the ministry's proposal to offer the units for free, FETC spokesperson Lang Ya-ling (朗亞玲) said the plan was not feasible.
“Our company’s capital is NT$3.8 billion [US$118 million], but we’ve already lost NT$3.3 billion,” Lang said.
“We've lowered the price by working out some special deals with car dealers and other businesses. The value of the gifts they offer far exceeds the price set by the government for OBUs,” he said.
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