So a fare hike of 1% instead of 2.8%

Rejoice, celebrate, the unhappiness of the people has been heard. The PTC must have taken heed of the general unhappiness of the people over the rising cost of living and came out with a smaller increase for public transport fare. A 2c increase per trip is negligible and well absorbed, may even be unnoticeable. There are still complaints. People are still unhappy.

The PTC quoted the profits of other private companies including non transport operators, to justify the increase. Other organisation’s profits ranged from 3 to 14.9%. These include companies like Hongkong’s Transport International and MTR, London’s Stagecoach Group. SembCorp Industries and Singpost. And the profits of SBS and SMRT were 7.8 to 11.2%, very reasonable and within the spread of the companies quoted.

There is no point trying to go into the details of the little data provided. For those who are sceptical, doubts on the credibility and relevance of the data are glaring. I could quote more transport companies and non transport companies running at a loss to justify that it is ok to run public transport companies at a loss or with little profit.

What is still seen as wrong or unacceptable with the minimal increase? What is 2c when people are earning millions? The issue here is the principle of public transport and how this is treated as any other organisation whose interest is profit. And the operators deserved to be making profits like any other organisation.

Is public transportation with the privileges of a monopoly attached, to operate without competition, any other organisation? A govt run public transport monopoly is a govt monopoly under any colour or stripe. And a public transport system is an essential service and should not quickly be swept away as any other business for profit.

Why is the govt so obsessed with the public transport companies making profit as its major concern to shareholders, and coming out to defend its right to such profits? Why is the govt so persistent in proclaiming that the govt officers are daft and unable to run a public transport system if it is returned as a stats board? It is unbelieveable that any govt would say such a darn thing, that they could not run a transport service unless it is run privately. What a profound statement to acknowledge an inadequacy in a govt filled with top talents. I just dunno what to say.


agongkia said...

Dun be simple minded and gong.If I am a businessman and my intention is to increase profit by 1 % and knowing that there will be objection,do you think I will ask for 1% increase?I will intentionally propose for 3 % increase because I know that you all will feel comfortable if it is reduce from 3 % to 1 %.But I got nothing to lose.I got the 1% that I want.You all also happy.I think I cannot call myself agongkia anymore .

Anonymous said...

yes, i agree. that's what a purchaser do on the negotiation table. set a margin for negotiation. Let the saying goes, shoot for the sky and you may fall among the stars.

I knew the PTC will approve the increase and thought the increase could be half of 2.8%, which is 1.4%.

Why else would the transport company ask for MAX increase limit. Even a daft like me can see through the smoke. Ha HA !

Chua Chin Leng aka redbean said...

Like they said, you try your tricks once, but not a second time.

This negotiating tactic has been on for decades. But don't worry, it works all the time. Just to recollect, everytime when a raise is due, all the jokers will cry for improvement of service or else. How many fare hikes have gone passed, how much have the service been improved.

And so many jokers are heard saying don't mind the hike if the service is improved.

Many are rejoicing, only 1% hike! Heng ah!

Anonymous said...

When consumers have to face cartels and wily businessmen, rest assured the latter will succeed in their schemes.