>> ASIAONE / NEWS / THE STRAITS TIMES / STORY

Transport operators on notice to step up service
Sue-Ann Chia Fri, Mar 07, 2008 The Straits Times
SINGAPORE'S plans to improve the public transport system and get more people using it are well and good, but Members of Parliament asked yesterday: Will users end up paying for it? Transport Minister Raymond Lim was quick to assure Parliament that any extra costs arising from the improvements recommended in a recent review would not be passed directly to commuters. Instead, he expected transport operators to be under pressure to step up productivity to survive competition. Mr Lim's ministry is on a big push to get more people to switch from cars to public transport. It also plans to introduce more competition in the bus and MRT sectors.

Yesterday's debate on the Transport Ministry's budget was the first opportunity MPs had to query the minister at length on the review.

Among their concerns: Is the balance between public and private transport optimal? Are ERP changes meant to raise revenue for the Government? Will some transport workers lose their jobs?

MPs Lam Pin Min (Ang Mo Kio GRC) and Low Thia Khiang (Hougang) worried that commuters would end up having to pay more.

Replying, Mr Lim pointed to the newer way of setting fares: by setting a cap, which can be revised every year, as opposed to the cost+x formula of old in which cost increases passed directly into fares.

He said that the price cap formula would protect commuters and provided transport operators the incentive to rein in costs.

Madam Cynthia Phua (Aljunied GRC) had a simple request: No more fare increases please, she said.

Unable to give such a blanket assurance, Mr Lim explained that operators would face rising costs.

The Public Transport Council is reviewing the current fare cap and will be done by the middle of the year.

Another concern: Should the Government take over providing public transport, instead of leaving it to profit-driven firms?

Replying, Mr Lim pointed to Jakarta, which has two sets of transport operators - one state-run, the other in private hands.

The state-run operators keep losing money and asking for subsidies, whereas the private operators keep costs low and make a return.

The lack of a profit motive, he said, leads to higher, not lower, costs.

Nor are subsidies the way to go, as these would result in overconsumption and public transport costs eventually being passed on to tax payers.

The Singapore way, he noted, is for the Government and transport operators to give direct and targeted help to low-income families who struggle to cope with transport costs.

The transport debate wrapped up Parliament's nine-day marathon on Budget 2008, during which 60 MPs spoke.

Leader of the House Mah Bow Tan commended Speaker Abdullah Tarmugi for being flexible with MPs while keeping an 'eagle eye' on the clock.

He noted: 'The main objective is to have a good debate: enough time for MPs and office-holders to engage in meaningful debate so that the people can have their views heard and clarified.'

sueann@sph.com.sg

MORE PARLIAMENT REPORTS, SINGAPORE