Want better transport? Pay for it

Unrealistic to expect better service without fare hike, says former transport council head
By Christopher Tan, The Sunday Times, 25 May 2014

After nine years as head of the Public Transport Council, Mr Gerard Ee knows a thing or two about trade-offs. Especially when it comes to balancing the affordability of fares and the profitability of public transport companies.

But it is clear to him that Singaporeans do not care about what goes into this crucial balancing act. "We want better service but no fare increase - which is not realistic," he said flatly.

Mr Ee, 65, who handed the reins at the council to former judge Richard Magnus at the beginning of this month, believes that the more Singaporeans expect from public transport, the more they should be prepared to pay.

He pointed to the $195 million project to upgrade the signalling system of the North-South and East-West MRT lines, which will allow trains to run at 100-second intervals instead of 120 today.

"Does it really hurt to wait that few more seconds longer, or to wait for three trains before you board?" he asked. "Because there is a cost to everything. Would it not be better to accept... that travel to and from work takes a bit longer, but it's affordable?"

Even if the Government steps in to finance the upgrade, the cost is ultimately borne by the community.

"Government money is the people's money. And tax money collected is finite. It's used for education, health care, defence, transport. The more it goes into one sector, the less we have for another."

What about opening the market to more competition, which the Government has just announced it will do with public buses?

Last Wednesday, the Land Transport Authority announced that it will bundle bus routes in 12 packages, which will be put up for competitive bidding from later this year. It envisages the reformed market to have up to five operators.

Mr Ee said: "Both SMRT and SBS Transit are public companies. If I were a shareholder, I might well tell them, 'Hey, look, the returns (on buses) in Singapore are so miserable; don't even bother to tender for it. Focus on Australia or wherever the returns are much better.'"

And even if new players come in, things may not change.

"If they don't make it, they close shop, and we re-tender, and another (player) comes in. Meanwhile, the commuter will suffer. That's a possible scenario."

When it is pointed out that the contracts model - where operators bid for rights to operate selected routes - seems to work well in places such as London and Sydney, Mr Ee said commuter expectations are different there.

"I go to London three times a year," he said. "You may have to walk four, five bus stops before finding one where the service you want stops.

"But people there accept it. As for rail breakdowns, you don't know until you get to the station. But people take it in their stride."

And nationalisation is not necessarily a superior model either, said Mr Ee.

"The Government takes the hit when it adjusts fares," he explained. "Still there won't be happiness, because the expectation is for a very high level of service at minimum fares."

Mr Ee revisited the issue of high expectations frequently during this interview, blaming it for the unhappiness Singaporeans have over public transport.

"At the end of the day, buses and trains are about transporting a lot of people from Point A to B as affordably as possible," he said. "So by that very nature, they are going to be crowded. They're not designed for comfort.

"If you treasure your time and treasure your comfort, you pay a premium - there are premium bus services. If you value your time and comfort even more, buy a car. And then ultimately, get a chauffeur. You have to decide for yourself what it is you want."

While he acknowledged that commuter satisfaction has been slipping, he also lamented how people forget too easily about the improvements that have been made.

Like how it used to take almost an hour to get from Bishan to Kembangan. Now, it is less than 30 minutes since the Circle Line opened four years ago.

"We forget about that great improvement, but complain that we have to wait for one train to pass before we can get on."

An occasional public transport user himself, Mr Ee said things are not as bad as they seem.

"Nothing is ever perfect. But in the context of this imperfection, actually things are not so bad.

"Of course they can always be improved, but what degree of perfection are you aiming for, because there is a cost involved? Are you willing to pay higher fares to achieve it?"

Reiterating what the Government and the public transport operators have been saying, Mr Ee said planned improvements - such as the new MRT lines - will take some time to materialise.

In the meantime, people can either adapt to the current situation or "keep grumbling".

Mr Ee is told that nearly two decades ago, the Government actually had a far more ambitious rail expansion plan than today's. Critics believe that if that programme were on course, commuters would not be facing many of the current issues.

In response, Mr Ee again brought up the issue of trade-offs.

"In the early years, we tended to roll out new lines when there was an economic downturn, to get the best price and to create employment," he said. "The downside is that you may not keep pace with pattern of demand.

"To keep pace with demand, you would have to build even though it's expensive, like now. So, again, it's a balance."

On the other hand, if a line was built ahead of demand, "you get a situation like in Sengkang... where those who moved in early get irritated because they can see the stations but can't use them".

He was referring to the Sengkang-Punggol LRT system, which was completed in 2003, but has yet to open fully.

"It also comes back to that one fixed pot of money. Every year, we have the Budget debate on how to slice it up.

"So do we use the money for building a new MRT line or, at that time, the new Terminal 3 (at Changi Airport), which will bring more tourists to Singapore and benefit the economy?"

He said another way would be to increase taxes, but that would "drive away all the richer people who actually create industry and bring all the jobs here".

Dipping into Singapore's reserves is also out of the question. He said the reserves ensured the strength of the Singapore dollar. For a country that imports almost everything, a strong currency is vital.

It would help "if more people understood what Singapore is faced with... and how the country has to constantly juggle when it comes to allocation of resources", said the trained accountant.

As for where the key to public transport satisfaction lay, Mr Ee did not mince his words.

"Commuters changing their attitudes," he said.

A cost to everything

"Does it really hurt to wait that few more seconds longer, or to wait for three trains before you board? Because there is a cost to everything.

Would it not be better to accept... that travel to and from work takes a bit longer, but it's affordable?"

Going for affordability

"At the end of the day, buses and trains are about transporting a lot of people from Point A to B as affordably as possible. So by that very nature, they are going to be crowded. They're not designed for comfort. If you treasure your time, treasure your comfort, you pay a premium."