Home Car Articles News News Listings Other News

Government accepts full fare review report

12 Nov 2013|4,261 views

The Government, during Parliament yesterday, accepted in full the recommendations by the Fare Review Mechanism Committee (FRMC).

The Government has accepted all the recommendations on public transport fares made last week by the Fare Review Mechanism Committee, reported The Straits Times.

Public transport operators are allowed to apply for fare adjustments annually but these are subject to the PTC's approval

These include funding two new fare concessions - for low-income workers and people with disabilities - with tax revenue. It will be the first time the Government subsidises fares this way.

While concession details, such as the amount and who qualifies, are still being worked out, Mr. Lui hinted strongly that the discounts will be substantial. "It is my intention to ensure that the discounts given will more than offset any fare increase in the next fare exercise," he said in Parliament.

Mr. Lui added that the next fare revision will be in the first half of next year. Yesterday, he also pledged that fares "will not become less affordable for the average commuter, and will be considerably more affordable for the low-income and disadvantaged groups. This is my intention and I have every confidence we can achieve it".

While the Public Transport Council (PTC) will take into account the adjustments that were allowed for last year and this year but were not made, Mr. Lui urged it to keep the next increase within this year's average national wage rise.

Other recommendations include having public transport firms contribute 20 to 50 percent of each fare rise to the Public Transport Fund, which disburses fare vouchers to the poorest households. Mr. Lui cited this feature of the new fare formula in his reply to Mr. David Ong (Jurong GRC), who asked if it could factor in the profitability of operators.

Non-Constituency MP Gerald Giam asked why service quality could not be in the formula to spur operators to do better. Mr. Lui said the formula should be "as straightforward as possible", and service quality is best addressed by regulatory standards. This way, service can be raised without a direct impact on fares.

The Government has accepted all the recommendations on public transport fares made last week by the Fare Review Mechanism Committee, reported The Straits Times.

These include funding two new fare concessions - for low-income workers and people with disabilities - with tax revenue. It will be the first time the Government subsidises fares this way.

While concession details, such as the amount and who qualifies, are still being worked out, Mr. Lui hinted strongly that the discounts will be substantial. "It is my intention to ensure that the discounts given will more than offset any fare increase in the next fare exercise," he said in Parliament.

Mr. Lui added that the next fare revision will be in the first half of next year. Yesterday, he also pledged that fares "will not become less affordable for the average commuter, and will be considerably more affordable for the low-income and disadvantaged groups. This is my intention and I have every confidence we can achieve it".

While the Public Transport Council (PTC) will take into account the adjustments that were allowed for last year and this year but were not made, Mr. Lui urged it to keep the next increase within this year's average national wage rise.

Other recommendations include having public transport firms contribute 20 to 50 percent of each fare rise to the Public Transport Fund, which disburses fare vouchers to the poorest households. Mr. Lui cited this feature of the new fare formula in his reply to Mr. David Ong (Jurong GRC), who asked if it could factor in the profitability of operators.

Non-Constituency MP Gerald Giam asked why service quality could not be in the formula to spur operators to do better. Mr. Lui said the formula should be "as straightforward as possible", and service quality is best addressed by regulatory standards. This way, service can be raised without a direct impact on fares.