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However, the report shows that when the economy did poorly or when tpt operator earned lesser profits, fares should have reduced as the CPI dipped.
Hence, proposal is made for bus/ MRT fares to be adjusted periodically according to the CPI...
New public transport fare adjustment formula recommended
SINGAPORE : Putting the brakes on untimely public transport fares hikes.
This is one of the thrusts of the recommendations tabled by the Committee on the Fare Review Mechanism.
The Tang family gave up their car more than a year ago after Mr Tang Kjin Keon was retrenched.
The couple now spends some $300 a month on bus and MRT trips.
With the new recommendations, such expenditure by families who rely on public transport will be monitored annually.
Instead of using findings from the Household Expenditure Survey which are only available every five years.
Wing Teng, a commuter, said: "We actually thought taking public transport is not too expensive but we realised that it is not that cheap either. We hope the government can do something to revise the fares downwards so that we can save."
And that could be possible with the new proposed fares adjustment formula.
The committee said the new proposed fare adjustment formula would mirror the changes in the cost of living and wages more accurately.
Ong Kian Min, Chairman of the Committee on the Fare Review Mechanism, said: "If this formula had been in operation since 1998, you can see that in some years in applying this formular, it will produce a negative maximum adjustment value which means that in those years conditions were such that the fares should be reduced or rebates should be given by the PTC."
While the Public Transport Council says it has been strict in approving fare adjustments, balancing commuters' interest with the viability of public transport operators.
Mr Tang feels more can be done.
"All the while we are not sure how they compute and review the fares and there is no transparency at all," he said.
Besides being more transparent, the recommendations also include checks against excessive profits, sharing gains with commuters and provisions for the Public Transport Council to vary or reject fare changes.
The report will be presented in Parliament next month.
The committee also said that the formula should be reviewed every three years to ensure that it remains relevant and reflects the changes to economic performance and wage movements.
The SBS Transit said the new formula better reflects cost structure and is likely to be more responsive to changes in business environment. - CNA
So... Anything unhappy with it?