Public Transport works better when the Community Drives Them.

Singapore’s Public Transport Social Enterprise (PTSE).

By MIKOspace

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. 

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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.

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[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 …..

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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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Restoring Public Trust in Singapore

http://miko-wisdom.blogspot.sg/2015/01/restoring-public-trust-in-singapore.html