No public transport fare adjustments this year

[Tianake]

No public transport fare adjustments can be expected this year, said Minister for Transport Lui Tuck Yew.

 

Speaking in parliament on Wednesday, Lui announced that public transport operators are currently facing higher costs -- especially on their bus operations -- and hence, the government should not be in a rush to review this year's fare adjustments.

 

Lui added that the current fare formula is due for review this year and that any fare adjustments that were not made this year will be taken into consideration into next year's fare formula.

 

With no changes to fare adjustments, the disabled and polytechnic students will not get to enjoy any fare concessions.

 

Although Lui expressed sympathy for these two groups of citizens, he maintained that "not all of these requests [to implement fare concessions] can be addressed immediately or entirely within a single fare revision exercise".

 

In addition, Lui also asked for patience from the Members of Parliament who had advocated fare concessions for polytechnic students, before adding that the Public Transport Council (PTC), which is the body that regulates fares, is "acutely aware" of the requests for concession and will co-operate with transport operators to consider these requests.

 

Low-income earners at losing end

 

Singaporeans expressed concern with Lui's announcement, with many anticipating fare adjustments in next year's formula.

 

Others also noted that the static fares will no doubt affect low-income families who are already struggling to make ends meet.

 

Said Facebook user Ong Yongjie, who responded to Yahoo! Singapore's wall post, "Transport minister Lui Tuck Yew should get our approval first

[Mockngbrd]

means nex year go up more lo

[Jeffc]

What's the role of the PTC?

Just close it, save the tax payers money.

[New_Atlantis]

If they dare raise the fare after getting 1.1billion. All hell will break loose. maybe we will see riots on the streets.

[Mustank]

If they dare raise the fare after getting 1.1billion. All hell will break loose. maybe we will see riots on the streets.

 

1B can tong how many years no increase?

[New_Atlantis]

1B can tong how many years no increase?

 

Tong untill the next election lor.. then PAP will use another 1.1 as bait.

[Tom_kkh]

news announced that next year when they review the fare, they will take into consideration that this year there is no increase, so lppl

[Vid]

means nex year go up more lo

 

The way he said it was so obvious

[questionedfish]

So next yr rise how much?

[Vulcann]

If they dare raise the fare after getting 1.1billion. All hell will break loose. maybe we will see riots on the streets.

 

Errrrr....

 

From CNA:

 

http://www.channelnewsasia.com/stories/sin...1186296/1/.html

 

Any profit from $1.1b bus package will go back to government, says DPM Tharman

By Hetty Musfirah | Posted: 01 March 2012 1641 hrs

 

SINGAPORE: Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said that any profit made from the $1.1 billion package for public transport operators (PTO) to grow their bus fleet will go back to the government.

 

Mr Tharman said $280 million is budgeted for the purchase of 550 buses over the next five years, while the remaining $820 million is to cover the net operating costs of the buses for 10 years.

 

He said the 550 additional buses is projected to be a loss-making operation, and so the $1.1 billion package is expected to cover the losses.

 

Mr Tharman said the government will scrutinise operators' accounts. And should operators ever turn a profit or make lower losses, the government funding will be reduced correspondingly.

 

A review will also be conducted in five years to check parameters of the agreement.

 

Mr Tharman said: "The $1.1 billion package is expected to cover the losses of the 550 buses, in other words, the additional costs, net of revenue of the $1.1 billion package. $280 million is budgeted for the purchase of the 550 buses over the next five years and $820 to cover the net operating costs for 10 years.

 

"This is based on the best estimates currently. However, we will be monitoring and scrutinising the PTOs' actual costs, for both the purchase and the running of the buses. Should their losses turn out to be lower than expected, the government funding will be reduced correspondingly. So one way or another, there are no profits to be made from the 550 buses."

 

"We expect them to make losses based on their all existing parameters. If we are lucky and somehow the system is re-engineered, so that the losses are less than expected, or most unlikely if they turn a profit, that will not come from the government, the $1.1 billion will be reduced, as their losses are reduced, and if they make a profit, it all comes back to us.

 

"So none of the $1.1 billion will go towards profits of the public transport operators. It will be ring-fenced, their accounts will be scrutinised, we will be paying according to what the costs actually are. There is a review in five years to check the parameters of the agreement."

 

Mr Tharman said the package is a subsidy for commuters and not a subsidy for operators.

 

He said without the government stepping in to help boost bus capacity, the significant service levels improvements would only be achievable if fares are raised sharply.

 

He added that if operators had to do it on their own, their fare revenues would have had to go up, by about 12 to 13 percent. And this translates into an increase in passenger fares, of about 15 cents per journey.

 

Mr Tharman said: "How much is 12-13 percent? In the last five years, since 2006, fares went by 0.3 percent, so 12-13 percent is quite a significant leap compared to what we have seen in the last five years. That would have been the only way for us to achieve the service levels improvements if the government has not stepped in.

 

He said the $1.1 billion government package, or $110 million each year, is to step up bus service levels well beyond the current service levels required of the operators.

 

He said it will increase bus capacity on existing heavily-utilised routes, making them less crowded and giving commuters more pleasant journey.

 

The number of new bus services will be added to improve connectivity.

 

He said the PTOs will have to improve service levels as a condition for the government's investment.

 

Mr Tharman said: "We cannot simply mandate the PTOs to add the 550 buses. First, because it goes significantly beyond the current service levels of the current regulatory framework. Second, the PTOs bus operations are already running operating losses and the additional 550 buses in particular are projected to be a loss-making operation.

 

He said despite the government package, and independent of the government package, regular and incremental fare increases will continue to be necessary as wages and operating costs rise.He said this is so that bus industry can stay financially viable.

 

Mr Tharman said the government will also continue to make sure that needy commuters get adequate assistance for their transport expenses.

 

- CNA/de

[Yaloryalor]

So crowded, so many breakdowns, so many complains, dun have to say; of cos cannot increase the price la.

[Sdf5725]

Errrrr....

He said without the government stepping in to help boost bus capacity, the significant service levels improvements would only be achievable if fares are raised sharply.

He said despite the government package, and independent of the government package, regular and incremental fare increases will continue to be necessary as wages and operating costs rise.He said this is so that bus industry can stay financially viable.

[/color]

 

1. the services level not only but increasing the bus capacity. nowadays services so bad. and it is after all the fare hike for past years. so even increase in fare again, i do not expect the service to be better. so keep trying to convince ppl that increase fare is to improve service level is bbbbssst. who with sound mind will try this idea????

2. any data of wage and operating costs increase? what is their root cause of increase?? if it is go back to their policy, tax, request for profit sharing, it is like doing a show. on one hand, try to play good guy, put $$ into it. on the other hand, take back the $$ i put in for self consume. the fact that "privatise" bus services but in fact take the major share is just that i can show no mercy for increase fare and take your $$ yet i am controlling this at the background so as to maximize my own $$ interest.

[Sdf5725]

So crowded, so many breakdowns, so many complains, dun have to say; of cos cannot increase the price la.

 

they will tell that the fare increment not high enough to provide good support. So need to increase further, much much more.

[Yaloryalor]

they will tell that the fare increment not high enough to provide good support. So need to increase further, much much more.

 

Many they will say earn few millions is not enough. Need to maximise shareholder profit so increase the fare.

[13177]

Thought they have just increased the fare last year or so? That's why they dare to promise no adjustments this year.

[AndrewLee72]

If like that is making loses. Means we as customers SHOULDNT be paying for the rides mah... then the Bus Co will be making a loss lor!!! So lets start taking the bus but DO NOT pay lor - make their statement become Trueeeee...

 

Knn

[Wyfitms]

Took MRT to office today. 20km ride cost me $1.70.

 

About half the Petrol cost to drive down.

 

Downside i have to be cramped in the MRT and took over 30mins to reach destination as the train paused every few mins due to "track fault". And have to hear the same announcements that SMRT is very sorry for the inconvenience caused countless times.

 

Think i will still stick to driving and the traffic jams, thank you very much, SMRT.

[Good-Carbuyer]

No public transport fare adjustments can be expected this year, said Minister for Transport Lui Tuck Yew.

 

Speaking in parliament on Wednesday, Lui announced that public transport operators are currently facing higher costs -- especially on their bus operations -- and hence, the government should not be in a rush to review this year's fare adjustments.

 

Lui added that the current fare formula is due for review this year and that any fare adjustments that were not made this year will be taken into consideration into next year's fare formula.

 

With no changes to fare adjustments, the disabled and polytechnic students will not get to enjoy any fare concessions.

 

Although Lui expressed sympathy for these two groups of citizens, he maintained that "not all of these requests [to implement fare concessions] can be addressed immediately or entirely within a single fare revision exercise".

 

In addition, Lui also asked for patience from the Members of Parliament who had advocated fare concessions for polytechnic students, before adding that the Public Transport Council (PTC), which is the body that regulates fares, is "acutely aware" of the requests for concession and will co-operate with transport operators to consider these requests.

 

Low-income earners at losing end

 

Singaporeans expressed concern with Lui's announcement, with many anticipating fare adjustments in next year's formula.

 

Others also noted that the static fares will no doubt affect low-income families who are already struggling to make ends meet.

 

Said Facebook user Ong Yongjie, who responded to Yahoo! Singapore's wall post, "Transport minister Lui Tuck Yew should get our approval first