SINGAPORE BUS SERVICE LIMITED (Passenger traffic and fares)

[Mr Speaker in the Chair]

Mr P. Govindaswamy asked the Minister for Communications (a) what was the average monthly number of bus commuters prior to the recent increase in bus fares; (b) what was the number of commuters for the first month after the increase; (c) what was the increased net profit of the Singapore Bus Service (Private) Limited for that month; and (d) basing on this figure of net profit as an average monthly net profit, if the company will meet its budget, as assessed prior to the implementation of the increased fares, to replace old buses, to provide other benefits for its workers, etc.

The Minister for Communications (Mr Yong Nyuk Lin): Mr Speaker, Sir, I regret to inform the hon. Member for Anson that neither the Singapore Bus Service Ltd., the Registry of Vehicles nor the Mass Transit Study Unit maintain statistics on the actual number of bus commuters at any one time. The closest estimate regarding passenger traffic handled would be through the number of tickets sold and daily collections made. As many as 1.75 million tickets may be sold per day, ROV is at present collecting statistics on the breakdown of fares collected by the SBS, but due to the large amount of data involved it will take some time before the figures are available. I am glad to announce however, that the Mass Transit Study Unit is at present engaged in a Bus Passenger Count Survey to supplement the data collected by ROV. It is estimated that the survey which began in January this year will be completed by end of May.

Mr Speaker, Sir, on the basis of unaudited figures submitted by SBS of the fares collected for the period 15th January to 9th February, 1974 (26 days) before the increase in fares, the average daily fare takings arrived at was $268,187. Between 10th February up to 7th March, 1974, for a similar period of 26 days after the bus fare increase became effective, the average daily fare takings rose to $349,140 or an increase of 30 per cent.

On the basis of just one month's operations after the increase in bus fares, it is somewhat early to talk of profits. One may, however, venture to say that with the increased takings SBS should be able to cope with its increasing expenditure for 1974-75 and to carry out its programme to replace its old buses in accordance with the requirements of the Ministry, provide for better benefits for workers and generally to improve the standard of its services, hereafter.

Mr P. Govindaswamy (Anson): Sir, can the Minister promise that there will be no further increase of fares?

Mr Yong Nyuk Lin: Mr Speaker, Sir, with all the best possible will in the world, that promise cannot be made because the bus company runs on oil fuel and that is not within our control. As everybody knows, the whole world waits to hear whether the oil prices will be increased.

Mr P. Govindaswamy: Sir, I want to know whether the profits of the bus company by that time will be reduced or increased.

Mr Yong Nyuk Lin: Sir, I cannot proceed further on that matter. If there are any details which the Member would like to ask, I will be pleased to supply.

Encik Abdul Aziz Karim (Kallang): Mr Speaker, Sir, if it is too early to talk about profits, then I would like to talk about losses. Will the Hon. Minister for Communications authorise bus fare increases each time the bus owners put their hands up in horror and say that they have made losses? And since the bus owners know that the Government is most unwilling to operate the bus service lest it has to subsidise the operations, will the Hon. Minister assure us that he will not be taken for a ride? How do we know that he has not been taken for a ride by the SBS? This is a test question, as further questions have yet to come.

Can the Hon. Minister inform us whether the SBS is the only business concern, most unfortunately a private monopoly controlling a public service under its wing, which is privileged by Government intervention to wipe off operating losses and to raise capital at the public's expense? Profits, virtually, guaranteed quite a risk-free business, is this not fortunate?

Mr Yong Nyuk Lin: Sir, that is a long-winded statement rather than a question because most of the questions posed have already been answered. The Member is just repeating himself.

Dr Ong Leong Boon (Kim Seng): Mr Speaker, Sir, can I develop on the question raised by the Member for Anson? I am not happy with the reply given by the Minister when he said that further rises in fares would depend on a subsequent rise in oil prices. I think he must have read the newspaper report -

Mr Speaker: What is your supplementary question, Dr Ong?

Dr Ong Leong Boon: My question is this. I do not think that bus fares should be dependent so much upon international oil prices. There are other considerations besides the price of oil, and I maintain that we should not just use the price of oil as a reason for any further hikes in bus fares. Will the Minister please comment?

Mr Yong Nyuk Lin: Sir, apparently the Member did not follow my oral answers. It has already been indicated that the Government is not going to allow a bus fare revision without making sure that the management of the company is able to account for its revenue and expenditure to the satisfaction of the Government. So it does not necessarily follow that the company is allowed to revise the bus fares by just putting hands up, as alleged by the Member for Kallang. They `have to justify it. It is too early now to talk of further bus fare increases when the new fares have just operated for only one month.

Mr J. F. Conceicao (Katong): Sir, will the Minister be able to say whether there has been any effect on the takings of the SBS because of the operation of the supplementary transport service?

Mr Yong Nyuk Lin: I think there has been some effect on the takings of the SBS as a result of the inauguration of the supplementary bus transport service.

Mr Conceicao: Mr Speaker, Sir, in that case, does the Minister not think that such competition will spur the SBS into making a better provision for its service? And the result should be that the Minister might consider giving more encouragement to this supplementary transport service.

Mr Yong Nyuk Lin: When we launched the supplementary public transport service, we did say that we would issue as many as 1,000 licences, of which 600 would be for school buses and 400 for lorries. The number of applications that have been received and approved was about 300. So another 700 licences could still he issued, provided the applicants would send in their applications.