PUBLIC TRANSPORT CONCESSION PASS FOR SENIOR CITIZENS

PUBLIC TRANSPORT CONCESSION PASS FOR SENIOR CITIZENS:

(Review): 2.

Er Lee Bee Wah asked the Minister for Transport whether his Ministry will consider reviewing the use of the public transport concession pass for senior citizens to make it valid for a full day on weekdays.

Mrs Lim Hwee Hua (for the Minister for Transport): Sir, currently, concessionary travel for senior citizens is granted by the public transport operators.

The operators have been extending the concession hours for senior citizens over the years. For example, in 2005, the concession period was extended such that senior citizens could enjoy concession

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fares an hour earlier on weekdays, starting from 9.00 am instead of 10.00 am. Full day concessions currently apply for weekends and public holidays.

The cost of such concessions is borne by the operators and ultimately cross-subsidised by other full-fare paying adults. Hence, the operators have to take this into consideration when extending concessions. Nonetheless, my Ministry will continue to monitor this issue and work with the public transport operators to review the concession hours.

Whatever the concessionary hours, some senior citizens would need more targeted help. Under our 'Many Helping Hands' approach, needy senior citizens can get help from the ComCare Fund and other community assistance schemes. The Government will also commit $10 million to a Public Transport Fund in October 2007 to be given out over three years to provide additional help to lower-income households.

Er Lee Bee Wah (Ang Mo Kio): I would like to ask MOS whether she foresees large numbers of senior citizens taking public transport during peak hours. Indeed, if they travel, I think it is because they have to, such as going to work; otherwise, they would like to avoid the peak hours.

Question two: can the MOS please elaborate how much will the cross-subsidy be? Is the amount so large that the transport operators cannot afford it? To my understanding, there is a fixed cost, whether the train or the bus carries one passenger or full capacity.

Mrs Lim Hwee Hua: Mr Speaker, Sir, I am not able to predict how much increased travel there will be by senior citizens. But certainly with more of them continuing to work, there is a possibility that that will increase. But, ultimately, the same case can be made for students and

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for others who are currently enjoying concessionary fares as well.

As to what this means in terms of cross-subsidy, it is not possible for me to isolate the impact. But, at the end of the day, the public transport operators have to be commercially viable. And the more concessions that they hand out by way of extending hours or by way of extending the group that will receive the concessions, the more the other full fare paying commuters would have to cross subsidise. That, ultimately, would be the question in terms of affordability of the overall public transport system that everyone has to consider.

Mr Lim Biow Chuan: May I ask the MOS whether she could clarify why did the Public Transport Council increase the fares for senior citizens when we are basically trying to look after the welfare of senior citizens and make it more convenient for them to travel?

Mrs Lim Hwee Hua: Mr Speaker, Sir, the recent fare increase relates to fare stages. Because the senior citizen fares are pegged to the lowest fare band of the adult trunk fares, therefore, when that goes up, the senior citizen fares would also go up by the same amount. There is no deliberate attempt by the public transport operators to increase fares specifically for the senior citizens. As I have implied in my earlier reply, not all senior citizens are needy. But for those who are in need of help, there would be targeted help by way of ComCare as well as the Public Transport Fund.

Er Lee Bee Wah: In view of the increasing number of senior citizens who will have to come out and work, as we want them to work longer, can the Ministry look into the formula that MOS has just explained, ie, the formula of how the fares for senior citizens are arrived at?

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Mrs Lim Hwee Hua: Mr Speaker, it is not quite clear to me what the Member is suggesting. Is she suggesting that senior citizen fares be looked at as a category on its own? But she would also notice that by her projected increase in numbers, it would mean that the more concessions that are granted to this increasing group, the more the other full fare paying commuters would have to bear.