New law sees LTA getting greater control over bus services

The Bus Services Industry Bill was passed in parliament yesterday, giving the Land Transport Authority (LTA) - Singapore's transport regulator - more powers to manage public bus operators and ensure that they meet high standards, reported The Straits Times.

The new law is part of a shift in the way the bus sector will be run from next year, and provides the framework for the LTA to contract out public bus services.

The buses will be owned by the Government, which decides the standard of service provided. According to Transport Minister Lui Tuck Yew, this means the government can respond "more expeditiously" to changes in travel demand.

Currently, regulating and licensing bus operators is undertaken by the Public Transport Council (PTC).

While presenting the bill for debate yesterday, Mr. Lui highlighted another advantage of the new bus contracting model: competitive tendering. "Operators have to compete for the right to run bus services, which will raise bus service quality in a cost competitive manner, thereby benefiting commuters," he said.

While MPs welcomed the Bill, they worry that bringing in new players could worsen the shortage of bus captains. Mr. Ang Wei Neng (Jurong GRC), a Senior Vice President at SBS Transit, points out that it is mainly Malaysians in the profession, owing to the weak ringgit. Mr. Lui replied that the contracting model is expected to improve the situation, as operators will, among other things, have to make attractive employment officers.

As the PTC relinquishes its regulatory and licensing tasks, they will take on a new advisory role to the Transport Minister.

The Public Transport Council (Amendment) bill was also passed in Parliament yesterday. Several recommendations of the Fare Review Mechanism Committee, such as the flexibility to carry over fare adjustments, were formalised. The Bill also gives the PTC powers to standardise the structure of taxi fares.