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
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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