SBS BUS FARES (Request for reduction)

Mr Hwang Soo Jin asked the Minister for Communications and Minister for Labour whether, in view of the substantial savings in costs achieved, he will direct the Singapore Bus Service (1978) Limited to consider a reduction in fares.

The Minister for Communications and Minister for Labour (Mr Ong Teng Cheong): Mr Speaker, Sir, as I explained to the House on 5th March 1982, 1981 was a fortunate year for SBS. The price of diesel did not escalate as much as SBS had feared at the time that fares were increased across-the-board on 1st April, 1981. The weakening of some foreign currencies against the Singapore dollar also contributed to the favourable position by way of cheaper spare parts.

At the same time, determined efforts by SBS to cut costs and improve productivity led to more cost savings primarily through more extensive use of OMO services. For these reasons, a second across-the-board fare increase planned for late 1981 was averted. One could argue that this is tantamount to a reduction in fares in real terms. To reduce fares now will almost certainly mean that future increases have to be larger. A more sensible approach would be to intensify the search for cost-saving measures and hope that external factors remain favourable. In this way, future bus fare increases can be kept to the minimum.