No Hikes Please, School Bus Fares High Enough

last SG · 2006-01-01T22:55:42+00:00

does that mean we can expect another fare hike soon?

sbst275 SG

Huh Huh Huh...

If that's the case, that's why countries like Malaysia are reducing their subsidies

Bus Co to provide concession fares? Isn't it given to all except teritary students?

dragg SG

they know how to increase fares!!!

Mad

robertteh SG

On their own private transport companies in Singapore history have never succeeded in convincing CASE of cartel or collective fare increases. Such increases by business cartels e.g. insurances are actually subjected to supply and demand equations or market conditions.

However, since minister has for some unfathomable reason already sided with SBS fare increases earlier including preemptive fare increases soon after recessions now he will naturally want to let private transport companies increase their own fares as such increases especially on the ground of oil price hikes can in a way justify his earlier SBS preemptive fare increases. (despite making good profits)

This is a justification exercise Singapore style - to cover for earlier mistake instead of solving problems proactively to justify earlier SBS fare increases as not wrong.

If private transport companies are to lose monies normally it was not the minister's business to step in the past to intervene. Now because of his earlier strange support for SBS fare increases, he would have to try some way to justify private transport increasing fares as that move will justify his own earlier SBS fare increases.

sbst275 SG

The issue comes to how much profits are they making right?

Let's put it frank, they have raised the fares, yet their profit has dropped... Why?

Partly is the higher diesel coses, another issue is govt making a din...

They want to reduce Malaysian drivers driving SBS bus, so to get more ppl, they increased the wages by 100%, creating higher cost for bus ops...

robertteh SG

I would rather think that the reason why minister will intervene in supporting transport fare increases is to protect GLCs like SMRT to make profits. Temasek has a lot of clout in such matter or decision because of government being into business. It is no longer a localized issue like SBS bus drivers going across to work for Johore transport companies.

sbst275 SG

For SMRT which is part of GLC, I believe... Because SMRT does not have any overseas biz, making it limited for any growth

SBS drivers going across JB? Well, it is all because new player Handal Indah needs new drivers, so they tried to give higher wages which ended up them charging most ex fares in JB in between 4 operators

oxford mushroom SG

Why do you claim there is a cartel? The Straits Times report indicated that there are more than one private bus company and not all of them are raising fares at this stage. If the fare increase is not reasonable, clients can move to other suppliers...let the market decide.

robertteh SG

By the fact that suddenly transport association representing them seems so strong in imposing fare increases, there is obviously a power or cartel behind pushing for collective fare increases. After what SBS has increased its fare, it seems justifiable for private transport companies to do likewise. Minister naturally will sympathise with such increases as that in a way will justify his pro-SBS fare hikes approved by him earlier which was done without any good supportive reason.

sbst275 SG

Pte and Public bus svs they do their own business

Even if SBS raises their fares, private operators at times do not. That's why the Scheme B services raised in Aug aft 11 years. Yet, because of the time lag, the hike went up by 20 cents per trip overnight

robertteh SG

Put in aother way, if minister did not push for SBS fare increases in 2003/2004 to create opportunities for SMRT to enjoy its own fare increases and Temasek to make more monies on its SBS holdings, then the private bus operators might not feel the urge to go for their own rounds of fare increases and leave the matter to market supply and demand.

CASE will have a role to play in ensuring there is no monopoly in raising of public or private transport charges. But when faced with GLCs or government's fee increases, CASE will keep quiet or try to justify the government's stand.

sbst275 SG

But if we put it to another way, even if there is no fare hike from public operator, external factors might (I am just saying might) have pushed them to raise fares as well...

The supply and demand theory also to their cost. If the running cost goes up, prices of fees would go up. And now they are pushing to use Euro4 std diesel, meaning more expensive fuel bills for the operators

BillyBong SG

CASE has done maginficently in the face of adversity ober the past few years, but their position is extremely untenable. It's like david trying to broker a deal with the giants and goliaths. Ultimately, if the private bus companies refuse to negotiate, what can they do? Issue a meaningless statement? There are two sides of the fence they are aiming to please. It's an almost impossible task, given the huge demands on both sides.

« Previous Page