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Source:
www.ptc.gov.sg |
1 to 2 Cents Increase in Bus Fares & No
Increase in Rail Fares |
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From 1 October 2007, adult EZ-Link fares for
buses will increase by between 1 to 2 cents. The Public Transport
Council (PTC) has decided that there will be no increase to all rail
fares. |
In August 2007, the public transport
operators SMRT Corp (SMRT) and SBS Transit (SBST) had applied to the PTC
for an increase in bus and rail fares. |
The PTC deliberated on the PTOs’ fare
proposals and approved an overall fare increase of 1.8% for bus fares
and no increase for rail fares this year, taking into account the fare
adjustment cap formula introduced in 2005. |
In its deliberations, the PTC considered
Singapore’s economic outlook and the affordability of public transport.
The economic outlook has been positive with the latest GDP growth
forecast for 2007 revised upwards to 7 to 8% and the unemployment rate
for June 2007 at 2.4%,1 the lowest in 5 years. |
The public transport affordability indicator
has been on a down-trend for the past 4 years, falling from 7.0% in 2003
to 6.5% in 20062, indicating that fares have remained
affordable for the majority of commuters. |
To further ensure that commuters’ interests
are safeguarded, the PTC also made a reality check on the PTOs’ ROTA
(Return on Total Assets) against companies with similar industry
structures and risk profiles. |
Taking into account these
considerations and its mandate to balance the interests of
commuters as well as the longterm viability of the PTOs, the PTC
has decided to grant a fare increase on bus fares only. |
Majority of Commuters See No
Increase or Small Increase in Fares |
The PTC approved a 1 to 2 cent
increase in adult EZ-Link fares for buses. Senior citizen
concessionary EZ-Link bus fares, which are flat fares pegged to
the lowest adult EZ-Link fare band will also increase by 2 cents. |
However, because they are flat fares,
the same 67 cents fare will apply regardless of the distance
travelled. There will be no increase to all rail fares, some
EZLink adult bus fares, as well as cash fares for buses,
child/student fares and the prices of monthly student/NS men
concession passes. |
The majority of commuters will see no
increase or a small increase in fares. Taking into account all
public transport (bus and rail) trips, 5 in 10 trips will see no
increase (52%); 1 in 10 trips will see an increase of 1 cent (10%)
and the remaining 4 in 10 trips (38%) will see an increase of 2
cents (Refer to Fact Sheet, paragraphs 8 to 10.) |
Help for Low-income Families |
While public transport fares remain
affordable for most commuters, low-income families may need more
help. The approach for helping such families has been to provide
targeted help via community-led initiatives and work support
schemes under MCYS/Community Development Councils as well as the
Workfare Income Supplement Scheme. |
The Government has also committed $10
million to a Public Transport Fund to be given out over three
years to provide additional help to lower-income households. |
Mr Gerard Ee, Chairman of the PTC
said, |
"The PTC has to strike a balance
between safeguarding commuters’ interests and ensuring the
financial viability of the public transport operators so that they
can continue to improve their services over time and sustain their
capital investments. |
"As part of its deliberations, the PTC
compared the PTOs’ ROTA against the prevailing ROTA figures of
companies with similar industry and risk profiles. The comparison
suggests that our rail industry is doing much better. Hence, on
balance, the PTC decided against raising rail fares, to the
benefit of commuters. |
We have tried to keep fare increase
small for as many commuters as possible but we know that any fare
increase, no matter how small, would still be felt by commuters,
especially those from needy families. Those who need additional
help will receive help from the Government’s Public Transport
Fund. The public transport operators will also chip in towards
public transport vouchers to help low-income families cope with
the fare increase." |
Please refer to the Fact Sheet for
more details. |
Approved Bus Fare Adjustments |
The approved bus fares, which
represent the maximum fares that the public transport operators
can charge, are set out in Annex A. |
More..... |
1 MOM’s seasonally adjusted
unemployment rates from 2002 to 2006 are: 3.6%, 4.0%, 3.4%, 3.1%
and 2.7%. The 2.4% unemployment rate is estimated for June 2007.
2 The Public Transport Affordability
Indicator for the past 4 years: 7.0% (2003), 6.8% (2004), 6.6%
(2005) and 6.5% (2006). |
Source:
www.ptc.gov.sg News
Release 11 Sep 2007 |
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