PUBLIC TRANSPORT SERVICE STANDARDS

PUBLIC TRANSPORT SERVICE STANDARDS

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(Effectiveness of penalties on transport operators): **

15.

Mr Baey Yam Keng asked the Minister for Transport whether the penalties imposed by Public Transport Council (PTC) on public transport providers which fail to meet service standards have been adequate to ensure satisfactory delivery of services and if otherwise, whether the Ministry will request the PTC to increase the fines accordingly.

Mr Raymond Lim Siang Keat: The Public Transport Council (PTC) has put in place a penalty framework since October 2007 to enforce its set of Quality of Service (QoS) standards for basic bus services. It sends a strong and clear signal that the operators should consistently strive for improvements and maintain a high level of service. Otherwise, they will face higher costs in terms of financial penalties, and their reputation will be affected. This signaling and reputation effect is an important aspect of the penalty framework, and it goes beyond the direct cost of financial penalties.

As reported by the PTC, the operators’ performance have been improving since the penalty framework was implemented. In the 6-month review period from December 2007 to May 2008, a total of 58 instances of non-compliance by both operators were recorded. The number of non-compliances of both operators fell to 46 instances for the subsequent review period from June 2008 to November 2008. In the latest review, for the period from December 2008 to May 2009, there were only a total of seven instances of non-compliance, and SBS Transit and SMRT Buses were fined $500 and $200 respectively.

Notwithstanding that the penalties imposed have been declining with improving performance, the operators have not relented on efforts in renewing and expanding their bus fleets, as well as recruiting and training more bus drivers to meet the QoS standards, and commuters’ demand for better services. This shows that the current penalty framework is effective in encouraging the operators to perform.

The PTC will review the penalty framework as and when necessary to ensure that it remains effective.