From the NSP
Press Release - Burden of Fare Hikes on Commuters is
Unjustified
Wed, Sep 12, 2007
The National Solidarity Party (NSP) condemns the latest approval of
bus fare hike by the Public Transport Council (PTC). Fare hikes
have become an annual ritual which highlights the sordid mechanism
behind the regulation of standards and fares by the PTC.
The Chairman of PTC Mr. Gerald Ee acknowledged that �the current
service frequency was not good enough when 'operational deviation'
was factored in�. The tightening of the basic Quality of Service
(QoS) by the PTC therefore constitutes a tacit admission that the
service standard for buses has dropped below the mark of decent
acceptability for some years, even as fare hike applications
continue to be favourably approved year after year.
The PTC stated that it was "mindful not to increase the cost of
compliance" to Public Transport Operators (PTOs), thus opting to
phase in the new standards in 2 years, with fines thereafter of up
to $10,000 per month for each instance of non-compliance.
The NSP would like to punctuate the salient point that such
punitive fines will unavoidably result in either the passing of the
cost liability to commuters, or in an invariable reduction in
service standards not directly measured by the QoS such as interior
ambience and comfort of ride.
The NSP strongly recommends that fare hike applications by PTOs be
dismissed until the basic service standard is first achieved within
the stipulated 2 years, and subsequently maintained for at least 5
years thereafter, subjected to a stringent and transparent process
of annual assessment.
Mr Gerald Ee�s assumption that Singapore�s economic growth
automatically translates to affordability for bus commuters is
questionable. In the latest hike, the highest increment was for the
shortest trips. This will hurt the heartlanders most as they are
often those with low or no income. Affordability is a nonsense
reason for a fare hike, especially since public transport is an
essential service.
Singapore�s �economic growth� has seen workers in the lower
40% of the population suffering little or no improvement in their
salaries. Their misery is compounded by the fact that the inflation
rate for the lowest 20% continued to peak well above that of the
highest 20% income earners, even surpassing the general household
inflation rate. And this is despite the occasional government
handouts. Those with �extra� money would prefer to save it or
spend in on other essentials instead of �squandering� it on
increased bus fares.
In the latest quarterly financial report of SBS Transit, fuel cost
decreased by 6.6%, while operating profit increased by 36.9% as
compared to the corresponding quarter last year. Profit after tax
to shareholders increased by 25%. Manpower cost increased by a
manageable 4.4% which was more or less offset by the decrease in
fuel cost. For SMRT, cost of staff and fuel decreased, while profit
after tax increased by a whopping 38.5%.
The impressive double-digits profits of PTOs far overshadow the
meagre pay increment of many citizens. It is hence dishonourable to
further fatten the coffers of the PTOs by diluting the citizens�
hard-earned gains.
The PTC acknowledged that Singapore has a �restricted number of
service providers and an absence of real market competition�. The
unchallenged business position of the existing PTOs will allow
their businesses to continue to stay attractively profitable for
the foreseeable long-term without needing to rip more from
commuters. This is evident from the rapid expansion of profitable
businesses of the PTOs both at home and overseas.
The NSP would like to pound on the need for improvements to the
grotesquely inadequate fare formula, a demand which have been
repeated incessantly by the indignant public.
The formula must include elements which incorporate the degree of
compliance to the QoS. The PTC must recognise that the lower and
lower-middle income group constitute the bulk of public transport
commuters. The formula must thus factor in their (low) earning
power and relatively higher incurred inflation, and not merely
incorporates the national average which skews in favour of the
well-to-do who do not generally commute by bus.
Finally, the profits of the PTOs and their payouts to shareholders
must be considered in the equation. If necessary, the PTC should
oblige these lucrative PTOs to raise extra funds from their
benefited shareholders instead of exploiting the lack of viable
alternatives for the people through constant fare hikes. It is
preposterous for the PTC to safeguard the interest of the
shareholders of PTOs at the expense of commuters.
The NSP hopes that the members of the PTC can step onboard public
transports more regularly to enable them to empathise with the
commuters, and recognise their fair rights and interests.
Central Executive Council
National Solidarity Party
