FORMER labour chief and minister in the Prime Minister's Office
Lim Boon Heng waded into the public transport debate yesterday,
explaining why fare increases, while unpopular, are necessary.
If bus fares were never allowed to go up, transport operators
might not have enough 'to invest in new buses, and quality of
service must drop'.
Speaking at a delegates' conference of the Singapore Shell
Employees' Union, he noted that fare increases also went towards
funding pay rises for workers.
'You know raising bus fares is unpopular. But if we cannot raise
bus fares, how will that impact your fellow workers? I am sure you
will understand that it is not fair if they cannot get wage
increases,' he said.
'But their wage increase will be funded by fare increases, which
adversely impact the public.'
Mr Lim, who left the Cabinet after the May General Election,
said that in the absence of productivity improvements, a 3 per cent
wage increase for workers meant that fares had to go up by 1.5 per
cent because labour costs make up half the total operating costs
for buses.
-- ST
