And
it’s perfectly Legal!
by MIKOspace
Commuters today hardly notice that
they have been “robbed”. Each bus and MRT train trip will merely add 2 - 5
cents depending on distance. Overall,
public transport fares increase by about 2.8% from today, in accordance with
the Public Transport Council (PTC) decision made on January.
It
has been argued and evident by facts
and statistics that the public transport fare hikes
for 2015 have no compelling rationale and basis. The PTO did not produce any justifications
as to current or impending profits reduction; they could not because they
actually enjoyed windfall profits due to unprecedented oil price drop last
year.
About $48 million
will be taken from commuters over the next 12 months to feed highly profitable
public transport operators (PTO) in 2015 and part of 2016. Serious
public trust issues are raised but never fully addressed.
The generosity of commuters in acquiescing
to the fare hikes, though few in fact have any alternative transport choices, will
deliver the whooping additional $48.5m in revenue to
the two public transport operators - SBS Transit and SMRT. Never mind that they will have to contribute
$5.5 million and $8 million respectively to the Public Transport Fund (PTF),
from which $7.5 million from the Fund would provide 250,000 vouchers of $30
each to low-income households (one-time?), which act merely to postpone but did
not eliminating its impact on the lowest of the low-income earners. These
vouchers basically returned their PTF contributions to the PTO to retain net-neutral
revenue impact
For SBS Transit, this $5.5 million
represents about 25 per
cent of the additional fare revenue, while for SMRT, the $8 million they
are setting aside accounts for about 30 per cent.
As predicted, commuters hardly feel
the mosquito-bite pinch of the transport fare hikes today. My son reminds me that it amounts to about $2-$4
per month for regular commuters, or nearly $25-$50 per year, for no assurance
of improvements in the prevalent poor customer services. The only clear purpose of the public
transport fare hikes is profiteering by the PTO.
Singaporeans must be protected from
the unequal powers of monopolistic – in the case of public transport, duopolistic
– companies in the marketplace. Every
economic student knows that monopolistic and duopolistic companies are the most
inefficient with respect to resource use in their operations. They furthermore
generate huge profits from the captive marketplace is such disproportion to the
privilege of providing a needed social service.
Both PTO have
announced dividends for their private share-holders from their windfall
profits. Their shares are expected to out-perform the stock market. Currently, the shares of both PTO are the
darlings of the Singapore Stock Exchange, even before the fare hikes!
Public transport commuters, mostly
for middle and lower income households, have few affordable transport
alternatives. Where is the social justice when private
companies are allowed to derive huge windfall profits from operating with
assets largely invested by the Government ie people of Singapore?
Granted, when considered in the
totality of its entire assets, which include the transport infrastructure
invested by past generations of Singaporeans, no strictly private and
profit-oriented company could be profitable under the normal
circumstances. So, why are the PTO profit-driven instead of guardians of social
investments and public assets? Why are
they allowed to skimmed from the commuters a few cents here and there even
though they are already highly profitable? It is because they can do so with impunity, to “rob” commuters
in broad daylight and night, and to get away with it because it is NOT a crime. It is in fact criminal to simply take from
the less and lower income, basically the weak and vulnerable people, in order to
enrich oneself. In this instance, and
every day for the next 12 months, day or night, when you board a public bus or
MRT train, you will be “legally” robbed.
Public transports should be managed
by more socially
responsible National PTOs beyond the current obsessive profit-seeker types
of companies. We need Public Transport Social Enterprises that have embedded
social responsibility values into its leadership and management.
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