BUS FARES

Mr Sia Khoon Seong asked the Minister for Communications and Minister for Labour, in view of the present stabilisation of oil prices, and noting that the Singapore Bus Service (SBS) fares were revisedacrosstheboardonlstApril,1981, as well as the increase in some concession fares from 1st January, 1982, if he can entighten this House whether there will be any increase in bus fares this year.

Mr Ong Teng Cheong: Mr Speaker, Sir, the Member for Moulmein is correct in noting that the price of oil has a crucial bearing on bus fares. Fortunately, the oil price in 1981 did not escalate as much as SBS had feared at the time when fares were increased across-the-board on 1st April last year. Partly because of this, a second across-the-board increase that had been planned for late 1981 was averted. The small increase in some concession fares on 1st January this year was aimed primarily at achieving a more sensible balance between concession fares and full fares.

Present indications are that the oil price will continue to remain stable throughout 1982. NWC wage increases can also be expected to be more moderate this year. At the same time, SBS is stepping up its efforts to save on operating costs without compromising on the level and quality of service. This is bei.ng done as part of the Comprehensive Bus Study. Amongst other things, the consultants will review the route structure and recommend how SBS can move to maximize OMO operations. Hopefully, SBS may be able to implement some of these recommendations before the end of the year.

Whether SBS will need a fare increase this year largely depends on the size of the NWC awards, since wages account for 50% or more of the total operating costs.

Mr Ho See Beng (Khe Bong): Sir, would the Minister for Communications and Minister for Labour agree that the reason why there has been no further escalation in bus fares is partly because of cheaper oil prices and it also depended on the NWC recommendations? But this certainly is not because there is an opposition in Parliament!

Mr Ong Teng Cheong: Mr Speaker, Sir, the answer is yes, I agree.