Leong Sze Hian and Joshua Chiang /

We refer to the report “PTC to review fare adjustment formula after 2012”  (Channel News Asia, Jul 14).

Fares formula valid until end 2012?

It states that “[t]he Public Transport Council (PTC) will review the fare adjustment formula for subsequent years after 2012 when the validity of the current formula ends”.

The current formula is : 0.5 CPI (Consumer Price Index)  + 0.5 WI (Average Wage Increase) -1.5%

On what basis does the statement say that the current formula’s validity ends in 2012? What is it that will make the formula invalid, and thus open for review, only after 2012?

The last fare increase was in 2008 at 1.7 percent. If the current application by transport operators for an increase of 2.8 percent is passed, it would mean a total fare increase of 4.5 percent for the period of 2008 till now. During the same period, real median wages have DECLINED by 3.9 percent.

Surely, a formula that may result in a total fare increase against a real median wage decrease over the same period needs to be reviewed now, and not until 2013!

In the same article, Transport Minister Lui Tuck Yew reportedly said it is “usually the profit incentive of commercial enterprises that spurs efficiency and productivity improvements.”

In this connection, the distance fares were implemented last year when for the first time in the history of the current formula, the result would have been a decrease in fares for all commuters across the board!

While the PTC should be allowed to “deliberate on the fare adjustment proposals properly and to come to its decision”, surely it should not be allowed to do another fait accompli on commuters.

As to the Ministry of Transport (MOT) saying the deliberations will bear in mind the interests of commuters and “long-term viability of the public transport operators”, as the Workers’ Party’s statement on 14 July has pointed out, with a total profit of $215.4 million last year, surely the “long-term viability of the public transport operators” may not be at risk if the fares increase application is rejected.

Higher service standards: Really?

The Transport Minister also argued that nationalizing the public transport system has “serious downsides” as commuters and taxpayers – including those who do not take public transport – are likely to end up paying more and that they may also see lower service standards over time.

He added that there will be “little incentive to keep costs down, if a nationalised public transport operator works on a cost-recovery basis and depends on the government for its funding”.

Has the Minister forgotten that the operators’ reason for applying now for a fare increase is due to “costs pressures”?

Also, going by the Minister’s reasoning, shouldn’t we be privatising more Government agencies and monopolistic providers of public goods and services, instead of maintaining or creating new ones?

Does he not wonder how most other countries do it with public transport operators that are truly “public”?

Whilst on the subject of “lower service standards over time”, we must say that we have to agree that transport service standards have been deteriorating over the last few years in Singapore.

We have noticed a trend, when taking the MRT or buses during peak hours, that more commuters may be travelling in the reverse direction to their destination so that they do not end up seeing so many trains and buses go by filled to the brim, had they waited at their normal stops. This may actually result in more commuters being unable to get on board even as trains and buses just depart from their terminals, because more people are travelling backwards towards the terminals.

In spite of this trend which is clearly a deterioration in service standards, we still have one of the most expensive fares in the world, primarily because we do not have unlimited travel monthly passes like almost all other developed countries like Hong Kong, Malaysia, the United States and the United Kingdom.

Record profits again?

Since it was said in conjunction with the implementation of distance based fares last year that the operators’ would lose out in revenue, because two-thirds of commuters would pay less, why is it that the combined profits of the two operators have once again hit a record high for last year?

This, like practically every reason (or as some may say- every conceivable excuse), given for increasing fares in the past, has failed the ultimate test of eventual statistical outcomes.

P.S. Leong Sze Hian has written more than 50 articles about public transport over the last decade or so.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

For the PAP, Mahathir is the elephant in the room

When Dr Mahathir Mohamad made a successful comeback against all the odds,…

内政部拟设新机构 内政科技局着重开发监控、取证等科技

内政部拟设立新的法定机构–内政科技局。该部于昨日提呈《内政科技局草案》到国会一读。 草案涵括内政科技局的功能和职责范围,其中包括开发相关科技,加强内政团队捍卫新加坡的效率。 根据内政部昨日发出文告,监狱持续的恐怖主义威胁、且犯罪手法不断演变,内政部及其团队多年来致力提升其运营模式。 内政部将提升对于科技开发的投入,计划从2019财年的9.79亿新元,提升至2025年的19亿新元。而支持提升科技技术的关键举措,就是成立一个专门的科技机构。 内政部表示,长期以来都有和其他政府机构和工业领域伙伴合作,来加强内政团队能力,“我们希望与时并进,提升科技技术,故此需要专门机构来更有效地开发和拓展内政团队的能力。” 至于内政科技局,主要领导科技研发,将着重在研发与内政和执法团队工作密切相关的领域,例如感知监控(例如警方电眼计划POLCAM)、取证(罪案、毒品、造假文件、火灾等取证调查)、数码取证、”CBRNE”(化学、生物、辐射、核子和爆破)相关威胁、生物指纹、控制系统、数据分析、人工智能、机器人和无人系统等等。 内政科技局也可监督执法团队的采购程序,并整合和简化采购流程。 文告指出,内政科技局一开始将招募超过一千位科研、工程师和技术人才,协助开发工作,并且放眼发展尖端创新,让内政团队能更有效完成任务。 上述设立内政科技局的草案,将在八月在国会进行二读,并且拟定在今年12月正式成为内政部的法定机构。

【冠状病毒19】4月24日本地新增897例确诊

根据卫生部文告,截至本月24日中午12时,本地新增897例冠状病毒19(COVID19)确诊,大部分为住在客工宿舍的工作准证持有者。其中13例为本地公民或永久居民。 同样,该部表示仍在确认这些病例细节,并将在晚间再发布详情。 本地累计确诊病例已增至1万2075例。

M Ravi: Regrettable for MOH to issue public statement in support of dismissal

Lawyer M Ravi, representing blogger Roy Ngerng has issued a public statement…