New formula for public transport fare revision to be out thi

sunnytv SG

New formula for public transport fare revision to be out this week
By Christopher Tan, Senior Correspondent

A NEW formula for annual public transport fare adjustments is expected to be announced this week.

The Public Transport Council, which has been deliberating on the changes since early this year, said that based on the Report of the Committee on the Fare Review Mechanism in 2005, the fare adjustment formula is valid for three years from 2005 to 2007, after which the relative weightage of various components in the formula will be reviewed.

PTC chairman Gerard Ee told The Straits Times that the changes will be announced 'any time now.'

The previous fare formula was based on inflation, wages of commuters and the productivity of the transport operators, with weightage given to inflation.

If that formula was still in place, fares could rise by 3.85 per cent - or about five cents per ride - from October.

Between 2005 and 2007, fares went up were between one and three cents per ride, although those who paid in cash (instead of using the ezlink farecard) saw their fares rising by 10 cents in 2005. Train fares were frozen last year because the PTC deemed profits from the rail business was more than adequate.

Next year, the increase in public transport fares could be far higher as inflation is now hovering at a 26-year high of 7.5 per cent.

Observers reckon changes to the formula could place less weightage on the inflation component and more on the productivity component, as well as the wages of people who are reliant on public transport.

A July announcement of the new formula is timely. Transport firms traditionally have up to August to apply for a fare increase. Adjustments, if any, will take effect from October.

http://www.straitstimes.com/Latest%2...ry_253492.html

Do you remember the bus fare based on the distant travel instead of the bus stop, it is just bullshit. By the time it take effect, the fare would have increase so many fold.

robertteh SG

As long as the government is still governing the country under the policy of taxing, hoarding taxes for surpluses and profiteering via fees and GLCs etc, PTC will never be fair or price the public transportation costs in a fair and equitable manner.

Has the minister done his homework like working out the percentage of transportation cost per family based on lower income earners ?

Until the minister has done his home work PTC will always take it to be the government signal to charge all costs based on government's own policy of taxing and hoarding and profiteering.

It will continue to charge higher and higher fees to make more monies like the government is doing with taxing and hoarding and profiteering.

It Raymond Lim is more people-centred he should have by now done a table for reference by the PTC:-

(1) average family income at the lower 20-50% of population

(2) taxes and fees paid per family for basic necessities like housing, medicare and utility and vehicle transportation etc for the lower 20-50% of earners.

(3) From (1) minus (2) work out the Net disposable income after deducting housing tax, vehicle tax and government charges on basic necessities covering food, medicare etc.

(4) Balance will then form the Amount affordable for public transportation per family in the lower income group.

Without working out such per-capital disposable income the Public Transport Council will continue to increase the transportation fees year after year by all sorts of excuses.

Many excuses given so far include:-

(1) inflation, wages, fuel, airconditioning, depreciations, new investments, extra staff floats for all sorts of purposes, share-holder returns (always the large chunk of fees go to paying higher CEO wages, options, bonuses and higher reserves, and rentals of all kinds including all the infrastructural costs which should have been financed from government COE, ERP Road Tax, and Petrol taxes etc in the first instance.

(2) increases will be more frequent so as to keep each increase smaller (like justifying the ministers' million dollar salaries to avoid corruption)

(3) no free lunch or free rides.

FireIce SG

confirm the formula will not include lowering the fares rite?

Evangel SG

Oil prices kept increasing.

FI drive?

whiskers SG

confirm the formula will not include lowering the fares rite?

Let me hazard a guess.... The start and end of the formula must end with "modulus" right.

^tamago^ SG

I think distance-based through fares is imminent.

FireIce SG

FI drive?

me no drive
oni ppl drive me around