Review of Public Transport Fare Formula

Mr Alex Yam asked the Minister for Transport with the recent announcement of a committee to be formed to review the formula used in the adjustment of public transport fares, (a) what will be the scope of review or mandate of this committee; and (b) when will public consultations begin.

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The Minister of State for Transport (Mrs Josephine Teo):

(for the Minister for Transport): Mr Speaker, Sir, Mr Yam has asked about the scope of review for the Fare Review Mechanism Committee. The Committee will study the possible options and propose improvements to the framework for the fare review exercise, including the price cap formula.

The outcome of the review should be a framework that continues to achieve a good balance between keeping public transport fares affordable and keeping public transport operations sustainable. For the benefit of commuters, it should also continue to incentivise the operators to improve their productivity and be efficient in their operations.

As for Mr Yam's second question on public consultation, this is clearly something important that the Fare Review Mechanism Committee will decide on and announce in due course after its formation.

Mr Alex Yam (Chua Chu Kang): I thank the Minister of State for the reply. In 2005, when the last fare formula was introduced, it did address the issue of the lack of clarity at that time in terms of fare formulas. But there is now a sense that this fixed formula has become an issue in recent years. For the Public Consultation Exercise, will it be taken before a decision is made or after the decision is made?

Mrs Josephine Teo: Mr Speaker, I thank Mr Yam for his question. Although it is really up to the Committee to decide, I would think that because its decisions will impact future fares and many public transport commuters, it would appear to make sense to conduct the consultation before a decision has been made. I think the key is really how to get a balance of views and to distil the views that can be incorporated as part of a workable solution. So, this is something that the Committee, when it is set up, will take into consideration, and I am sure that it will consider all the factors and make a wise decision on this.