SBS Transit, SMRT submit applications for fare adjustments
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SBS Transit, SMRT submit applications for fare adjustments
By Imelda Saad, Channel NewsAsia | Posted: 01 August 2008 1938 hrsSINGAPORE : The wheels are in motion for another round of public transport fare hikes. Singapore's two public transport operators, SBS Transit and SMRT, have submitted their applications to the Public Transport Council (PTC) for fare adjustments.
However, both companies would not give specifics as to the quantum requested.
SBS Transit and SMRT attributed the need for a fare increase to soaring energy and fuel prices.
SMRT said even a maximum fare adjustment of 3 per cent will not fully mitigate the inflationary pressures.
The company said its energy costs rose by 18 per cent to nearly S$90 million due mainly to higher electricity and diesel prices.
Diesel cost for buses amounted to more than S$42 million, 17 per cent higher than the last financial year.
SBS Transit said it is proposing to keep concession, children and students fares unchanged.
While the new fare formula allows for the maximum adjustment to be capped at 3 per cent, the PTC has said that any increase this year is likely to be less than the 1.8 per cent hike imposed last year.
Bus fares went up by 1 to 2 cents last October, while train fares remained unchanged, because the PTC deemed that SMRT had healthy profits last year.
The PTC will decide on the adjustment in September, and the new fares will take effect in October.
Separately, the Competition Commission of Singapore has rejected the Singapore School Transport Association's application to impose a fuel surcharge and the need for a collective price recommendation.
It said guidelines restrict independent pricing decisions, which is against free competition. However, the commission has no objections to fare increases, so long as it is decided on individually by bus operators.
It added that it is monitoring the situation and will launch an investigation if it has reasons to suspect that prices are being coordinated among the school bus operators. - CNA/ms -
It has become an annual ritual . PTC ok the hikes when energy cost was down on top of huge profits and reserves . When energy cost goes up it pass the buck to the people despite the fact its a Government Linked Company.
Where is the social responsibility of the government linked company? The symbolic $50 transport voucher is not going to help very much!
Though electricity is also very expensive but at the very least the Energy Market Authority DOES ADJUST ITS TARIFFS DOWNWARDS when oil price goes down even its not fast enough!
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They won't revised fares downwards because they suffered alot of losses in their investment overseas, they need to shore up their accounts, else the balance sheet and profit & loss will look very bad.
We all know who holds the majority of shares in these companies.
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prices up again.. sian...
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These Government linked transport compaines built their huge reserves on the back of the 230,000 low income Singaporeans from the low income groups from the "annual ritual", who has already suffered cut in CPF wages, lowering of wages due to influx of foreign workers which ironically helps to cut the business costs of these transport GLCs.
We have seen how millons of these reserves are invested overseas by GLC transport company hoping to make more profits for their shareholders.
What is the real purpose of these Government linked transport companies and PTC? Are they here to serve the people or wat ?extremely puzzled.
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Originally posted by maurizio13:
They won't revised fares downwards because they suffered alot of losses in their investment overseas, they need to shore up their accounts, else the balance sheet and profit & loss will look very bad.
We all know who holds the majority of shares in these companies.
The situation is rather bad, on the one hand you have a WEAK Transport Council who would approve fares' hikes on an anual basis and on the other hand you have the these GLCs plow back the 'forced' profits to invest overseas.
In places like London where Metroline of GLC delgro face great competition and when the wages of driver are protected by the unions, have resulted in smaller financial returns as compared to a much bigger money spinners in Spore where the PTC is agreeable to EVERY hikes and the Commission for Competition is non existence until recently.
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must see who are the blardy shareholders
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SMRT said even a maximum fare adjustment of 3 per cent will not fully mitigate the inflationary pressures.
Tsk.... Adjust fare up, increase the inflationary pressure, then more reason to increase fare next season.. this thing like vicious cycle... Didnt tharman say not to increase wage s to due to increase in inflationary pressures that will cause...
Wouldnt increasing basic transportation cost of every singaporean increase the Inflationary pressure also? -
Originally posted by whiskers:
Tsk.... Adjust fare up, increase the inflationary pressure, then more reason to increase fare next season.. this thing like vicious cycle... Didnt tharman say not to increase wage s to due to increase in inflationary pressures that will cause...
Wouldnt increasing basic transportation cost of every singaporean increase the Inflationary pressure also?
It's perfectly ok for them to do it, but not the workers. -
One of the SUCKER Agencies
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interesting article in the today newspaper, today.
http://www.todayonline.com/articles/268425.asp
wanna live in first world, be prepared to pay first world prices. but first world salary not guaranteed.
for good measure, on page 8, million dollar man swee say cycle on a trishaw to get a feel what hardship is.
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Can anyone tell me is Singapore the only first world country ( first world as claimed by the Pay and Pay gahmen) that keeps increasing prices/fares of the essentials, constantly raising the costs of living, discourage pay rise/increment during high inflation?
What the govt can do to help with the high inflation that people are coping is to be kind not to increase fares. Guess their greed knows no bound. Greedy self serving autocrats are detestable and a liability to the people of the country.
Do we still need such govt to take care of us?
Recently the ministers seem taking turns to discourage pay increment of the ordinary people. They are all working on the same agenda to suck more from Singaporeans while they continue to enjoy their obscene high salary at our expense.
These transport companies that keep unreasonably increasing fares belong to Temasek HOldings isn't it? Temasek Holdings is under Ho Ching who belongs to the Lee Family
.