Another Hike

SBS Transit and SMRT have applied for bus- and train-fare hikes. **#(%!!!

Feels like we hv had a few increases for the past few years...

A reader wrote to ST forum:

"I don't understand why SMRT and SBS Transit have decided to raise fares when SMRT registered operating profits of $68.9 million in 2004 and $70 million in 2005 on its bus and MRT services. SBS Transit, too, enjoyed healthy operating profits, of $52.6 million (2004) and $57.15 million (2005). Both companies enjoyed operating margins in excess of 10 per cent in both years. "

*APPLAUSE*

My sentiments exactly. My JC GP Tutor once told us that Singapore is the only country where the public transport carriers are making a profit. This is becos the government pays for the cost of the infrastructure (the roads, the rail, the station etc). So the public transport carriers does not have the burden of the heavy overhead investments.

Reasons for fare increase were due to higher fuel prices and higher wages. But, profits are still in millions! Note that profits = Revenue - Expenditure. Hence after deducting higher fuel costs + higher salary costs, they are still able to survive. So what's the case for having higher fares? So that they can continue to maintain their astronomical profits? That's not my biz! They should operate more efficiently and find other ways to cut cost! If not, then what's the issue if profits drop from $50 mil to $25 mil? Too low ? Try going to Indonesia... the population is many times ours, but their losses are many times ours too.

I think the government should just liberalise the transport economy and allow private bus operators to come in. The government's stance is they do not wish to hv duplication of efforts. But it should not be the government to worry abou this. If indeed there is duplication of effort, and it becomes unprofitable to operate > 1 bus on the same bus route, leave it to the market to vote, so that the fittest and best will survive. Another reason cited: low profit margins will lead to less investment / maintenance of buses, meaning, u will get lousy , dirty buses etc. Again, survival of the fittest. Just like there r budget carriers and full service airlines, let the consumers decide whether they want to pay 20cts for a non aircon bus, or 60cts for aircon. Besides, in Hong Kong, even though there are many bus operators, I did not spot any lousy buses. Even their mini-bus is ok... and they also hv the slick double storey aircon bus like ours.

But anyway, nothing I say will make any difference. I predict the opposition and MPs will put up a fierce debate over fare hikes, but at the end of the day, it will still go thru.. Just a wayang.. after all, how many people in Parliament take public transport?