Committee set up to review public transport fare formula

The Straits Times, 5 Jun 2012

A COMMITTEE of 13 people led by former senior district judge Richard Magnus has been formed to review a formula by which bus and train fares are adjusted in Singapore.

The committee is made up of Public Transport Council (PTC) members, academia and representatives from consumer and labour movements.

It will examine the effectiveness of the current formula of fare adjustments - devised in 2005 - and propose improvements.

The revision should 'balance keeping public transport fares affordable with the long-term viability' of the operators, said the Transport Ministry. It should also incentivise the transport operators - SBS Transit and SMRT - to be efficient and productive.

In its deliberations, the committee must 'ensure that the views of key stakeholders are adequately represented', the ministry added.

On the review committee's website, Mr Magnus said 'we will be working towards a revised fare review framework that will balance keeping public transport fares affordable, especially for those from low-income households, while ensuring that our public transport operators remain viable as commercial entities'.

'Finding the right balance is not easy, but we are committed to doing the best we can,' he noted.

The committee includes PTC representative Abdullah Shafiie Mohamed Sidik, Land Transport Authority group director Colin Lim and National Volunteer and Philanthropy Centre board member Low Teo Ping. It will submit recommendations to the Transport Minister by early next year.

The current formula hinges on Singapore's inflation rate, wage increase and the productivity of the two transport firms.

Incremental rises in bus and train fares have been regular annual affairs except when the country is in a severe recession. Last year, fares rose by 1 per cent.

This year's adjustment has been suspended while the review gets under way.

Critics have pointed out the formula has a time lag and therefore lacks currency. Others have questioned what constitutes 'a reasonable return' for the operators.

Anyone who wants to give input to the review committee should send ideas to FRMCommittee2012@gmail.com or PO Box 1025, Singapore 914035, by Aug 12.