SINGAPORE BUS SERVICE (1978) LTD (Allotment of shares to regular bus commuters)

Mr Ang Nam Piau asked the Minister for Communications, in fairness to those thousands of regular bus commuters in Singapore, if he will consider asking the Singapore Bus Service (1978) Ltd to allot 100 shares in the company to each of those commuters who wish to purchase concession bus passes.

The Minister for Communications (Mr Ong Teng Cheong): Mr Speaker, Sir, with 50% of its existing shareholders travelling on concession bus passes from 1st August 1978 onwards, it is expected that the Singapore Bus Service (1978) Ltd will suffer a loss in revenue of about $2.2 million a year. If holders of 100 shares in the Company are also allowed to purchase concession bus passes, revenue loss will increase at least fivefold to about $11 million a year.

The Singapore Bus Service (1978) Ltd is now a public-listed company. It is not subsidised and has to pay its own way. Besides having to continuously improve its level of service to the public, it has an obligation to its shareholders to remain financially viable.

Therefore, I do not propose to ask the Singapore Bus Service (1978) Ltd to allot 100 shares in the Company to each of those commuters who wish to purchase concession bus passes.