1/28/2015

Public Transport works better when the Community Drives Them.


Singapore’s Public Transport Social Enterprise (PTSE).

The latest arbitrary, non-transparent and unreasonable public transport fare hike creates a severe Crisis of Public Trust with serious far-reaching social consequences.  Both ComfortDelgro and SMRT have cited incredulous rising costs and lower profits to justify a public transport fare hike of 2.8% effective April 2015.  And surprisingly, the Public Transport Council (PTC) agreed.
                                
Indeed, their Betrayal of Public Trust has finally come to a head as our public transport operators (PTOs) traded social conscience and responsibility for profits as they gradually erode the sacred Social Contract in Public Transport with Singaporean commuters.

The Betrayal of Public Trust
The PTO case in support of their claims of rising costs and lower profits has not been made available by the PTC to the commuting public.  Never mind that the formula used by the PTC to “compute” fare increase is mathematically flawed.

According to an independent DBS Bank report BEFORE the fare increase announcement, earnings by ComfortDelgro and SMRT are estimated to increase by 4% and 7% respectively, mostly resulting from the sharp 50% oil price drop over the past 6 months and which is expected to remain low and lower in the near future.  Energy and fuel account for 9% to 14% of our PTO costs.  

ComfortDelgro also benefits from the $1.1billion the Singapore Government agreed in 2013 to provide for the purchase and maintenance of new buses over 10 years from 2014. In 2015, it would therefore receive another $110 million from this public handout, thereby subsidising its hitherto huge corporate profits.

The truth is that the PTO awaits huge public subsidies and do not provide reserves from their profits for public transport operating assets development, investments and timely replacement. Commuters are therefore constantly plagued by overcrowding, delays, breakdowns and other manifestations of inefficiency, poor management and poor service standards. 

In further violation of their public duty commitment to make all fare increase “affordable”, the new fare increase has to be subsidised by a further $7.5million.  In making unjustified and un-affordable fare increases, the case of PTOs’ betrayal of the public trust is undeniably conclusive and decisive.

Public Transport Social Enterprise (PTSE) Solution
In the wake of the failure of PTOs to act in the best socially responsible manner, the solution is to replace them with Social Enterprise organisations. A Social Enterprise is a business organisation that focuses on creating social impact by tackling social issues, improve communities, improve life-style and improve the environment. It reinvests profits back into the business and the Community.

Public Transport Social Enterprises (PTSE)
The era of a new Public Transport Social Contract begins with PTSE.  Some key characteristics with PTSE are:

[1] A Mindset Change and Strategic Leadership
The PTSE goal is nothing less than to change the world of Public Transport for the common good of Singapore commuters and Singapore overall. Strategic leadership with enhanced social responsibility values are needed to steer PTSE onto the higher ground to embrace a natural tripartite partnership with public transport commuters and government.  Specifically, the vision is to empower a continuous enjoyment of public transport at a constant low and lower fare through continuous social investments and responsible management. 

[2] Community Profit-Sharing
Under a Commuters Profit-Sharing (CPS) Scheme, the profits of PTSE companies at the end of the financial year can be proportionally shared in the 30:30:40 ratios between the Singaporean commuters, the PTSE companies and the government.  The government takes 30% of the profits and the PTSEs retain another 30%.  The remainder 40% is shared with Singaporean commuters in some relation to their total spending during the year. 

This CPS Scheme also acts like a profits buffer which returns “excessive” profits to its stakeholders, trims “excess” fares and regulate for a normal, reasonable level of returns on assets deployed. In this way, community profit-sharing creates a balanced Public Transport eco-System for Future Generations. The Management and employees of PTSE also enjoy gain-sharing bonuses … , even as the Government obtains early returns for its social investments in public transport infrastructure and operating assets.

[3] Public Transport Commuter Consultative Council (PTCCC)
We need to replace and enlarge the PTC to be more inclusive and effective. The new National Public Transport Commuters Consultative Councils (NPTCCC) is created and it in turn forms Community Public Transport Commuters Consultative Committee (CPTCCC) in each and every community constituencies. The PTCCC/NPTCCC embraces social responsibility and transparency as its twin operating guide and the values of honesty, mutuality and trust in directing its conduct. Membership is voluntary and …..
The NPTCCC is supported by a Professional Resource Panel consisting of …..

The NeXT Steps ….
The road to create Singapore’s National Transport Social Enterprises begins with a strategic plan and time-table to re-acquire all public transport operating assets in the hands of current PTOs. SMRT is originally created by public funds. It can now be dissolved and re-constituted into a new PTSE directly owning at least 80% of its operating assets. The operating assets funded by public funds in ComfortDelgro are to be re-acquired and transferred to another PTSE.  In any case, all license for the operation of mass public transportation like train and buses shall henceforth be issued to PTSE only.


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9 comments:

Anonymous said...

Indeed, their Betrayal of Public Trust has finally come to a head as our public transport operators (PTOs) traded social conscience and responsibility for profits as they gradually erode the sacred Social Contract in Public Transport with Singaporean commuters.
MIKOspace

Really?

And if so, but why then did the PAP govt, with US Army Command and General Staff College trained and award winning Kee Chiu as their master strategist, allow this Betrayal of Public Trust to finally come to a head? Are they not afraid of losing votes or even voted out in this coming GE?

Why Why Why?

Anonymous said...

If every Sinkie were to give me only 5 cents, I will instantly become rich by hundreds of thousands dollars.

So just a 2.8%, or 2 to 5 cents increase in transport fares per commuter trip alone, will similarly make the transport operators richer, based on the daily overcrowded buses and MRT and number of commuter trips. And with bigger population, the richer will the operators be, never mind the less comfortable will be for commuters, physically and money wise.

Hence PAP govt is very competent in doing such things and without losing much votes, thanks to Sinkies like WP Teochew Ah Hia. And maybe that's why Ah Hia even praised PAP for being competent.

Matilah_Singapura said...

What a great idea to socialise/ nationalise the public transport system!

Labour supply and labour costs should be no problem as there are many PMETs around to fill the requirement for drivers, ticket booth operators, cleaners, coolies and general shit-kickers. And since the supply is large, they can be paid wages which will make the enterprise very cost-efficient.

To ensure widespread employment, get rid of those Ezy Link cards and re-introduce paper tickets, along with bus/ rail conductors and ticket inspectors, no problem since labour costs are low.

Good idea! Socialise now!

Anonymous said...

Commuters/taxpayers are screwed both ways under the current model.
Capital investments/maintenance borned by them and yet have to pay unjustified fare increases to boost profits for these PTO which are kept by BOD and shareholders.
Yet the transport system are monopolised by them
PAP will pay definitely heavily at the next GE!

patriot said...

When I watched Cedric Foo queried Chen Show Mao about whether Workers Party support importation of immigrants, I was greatly disappointed. Not that I was, am disappointed with the lifeless presentation of Chen Show Mao, he should have done better, IT WAS MORE SO THAT THE PAP FOLKS ARE VOID OF COMMONSENSE.

First and personally, I feel IT SHOULD HAVE BEEN FINE HAD SIN MAINTAINS A CONSTANT POPULATION OF AROUND FOUR MILLION. SINGAPOREANS WOUKD HAVE ADEQUATE SPACE AND SUSTAIN THROUGH A MUCH LESS HECTIC PACE WITH REASONABLE LIVING STANDARD.
NO SOCIETY NEEDS TO LIVE ON BRANDED GOODS AND LAVISH LIFESTYLE.

BUT WHAT IRKS ME IS THAT IBSTEAD OF FINDING WAYS TO MAKE SINGAPOREANS PROCREATE MORE, THE PAP RULERS HAVE ALL CREATED AND ARE IMPLEMENTING POLICIES THAT CAUSED SINGAPOREANS TO AVOID PROCREATION.
AND THE ONLY WAY THE PAPPPIES COULD THINK OF IS TO IMPORT ALIENS. I THINK PIGS CAN THINK BETTER. WORSE, THE PAPPIES DIS AND ARE DOING TGEIR BEST TO KILL ANY ALTERNATIVE IDEAS THAT ARE DIFFERENT FROM THEIR ONLY IDEA.

IT IS TIME FOR PAPPIES TO WAKE UP THEIR STUPID IDEA AND WORK FOR THE BENEFIT OF NATIVE SINGAPOREANS.

WHAT IS THE BENEFIT OF SHOOTING DOWN ALL ALTERNATIVE IDEAS FROM THE ALTERNATIVE PARTIES AND THE PEOPLE???
DO THE HANDFUL OF PAPPIES BELIEVE THEY ARE THE ONLY FOLKS ENDOWED WITH INTELLIGENCE AND ALL OTHERS ARE MORONS?

ARE THE PAPPIES WAITING AND WANTING THE PEOPLE TO WAKE THEM UP?

patriot

patriot said...

My sincere apology for the Many typo mistakes resulting in as much spelling mistakes.

LIKE TO SAY THAT THIS ARTICLE BY MICHAEL HENG PBM AND POSTED HERE BY REDBEAN IS THE BEST I HAVE GOT TO READ ABOUT OUR PUBLIC TRANSPORT MANAGEMENT.
Other than the Poor Handling of the Public Transport by the Ministers, the MOST VALUABLE SUBSTANCE OF MICHAEL HENGS' ARTICLE; IS HOW THE PUBLIC TRANSPORT SHOULD BE MANAGED TO BENEFIT ALL PARTIES NAME COMMUTERS, OPERATORS, THE TRANSPORT MINISTRY AND EVERYBODY. OBVIOUSLY AS WE GO ALONG, MORE IMPROVEMENTS CAN BE ADDED.

patriot

Matilah_Singapura said...

@ patriot:

Whether you like it or not, Asian societies in general run on branded goods.

Even in China -- as soon as people can afford it, they throw away their fake copies and buy the real-deal branded items, be it Rolex, Louis Vuitton or Ferrari/ Lambo--where China is their BIGGEST market.

Singapore, sama-sama. We live in a "branded goods" culture. Our model of economic pwer is buy buy buy spend spend spend...i.e. CONSUMERISM. We produce, then we spend like drunken sailors on shore leave :-))

In order not to LOSE FACE/ lau qui / malu : buy and then OPENLY DISPLAY your ownership of branded goods!

That's being a True Singaporean lah. Branded goods are the Medals of Meritocratic ACHIEVEMENT

patriot said...

@Matilah Singapura;

Meritocrazy is the Archilles Heel of Sin.
It shall bring forth much woes for
Sinkies as avarice is overwhelming them from top to bottom.
For a naked tiny rock with no resource, there is nothing to sustain the Wants of the Folks
in Sin.

It is my personal reading, feel
free to disagree. I will not refute contrary opinions.

patriot

patriot said...

拔苗助长,
成事不足,
败事有余。
Hot housing brings
about early maturity
which naturally brings
about early harvest or
and early demise.
Nothing to be proud of.
Btw, stripping the Nature
of the Land to make way
for All things artificial is
another big mistake in the
Name of Economic Development.
Nature lasts infinitely, man made
stuff lacks life and does not last.

patriot