FEEDER SERVICES (Provision by private mini-bus operators)

Dr S. Vasoo asked the Minister for Communications whether he will permit private mini-bus operators to provide feeder services within new towns and along other routes not served by current bus companies.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, private operators will be allowed to operate bus services which do not duplicate the basic bus service operated by the main operators. This is because the main bus operators are obliged to provide universal service, in other words, they have to operate both profitable and unprofitable services. Private operators, on the other hand, do not have to fulfil this obligation and therefore they can choose to run only profitable services if they wish to do so.

However, private operators can play a useful role in supplementing the services provided by the main bus operators. The Public Transport Council will consider bus service applications from private operators, based on the following principles:

(1) If the proposed bus service is comparable to the basic bus service in quality and fares, it must operate within the main basic bus network, so that there is no wasteful duplication of services. This is necessary so that basic bus fares are kept affordable.

(2) If the proposed service offers a higher quality service at higher fares, for example, Bus-Plus services, there will be no restriction on the route because it serves a different market from the basic bus service.

Dr Vasoo: Sir, would the Minister consider allowing private operators to operate in some new towns where the present feeder bus services are insufficient and the travelling time is increased?

Mr Mah Bow Tan: As I have indicated in my answer just now, if the application is from a private operator who wishes to run the service which is targeted at a different market segment, then the Public Transport Council will consider that application.

Dr Vasoo: Sir, what does the Minister mean by "targeted sectors" because they are all one sector in the new town?

Mr Mah Bow Tan: In other words, it is a service which is not directly duplicating the basic bus service in terms of quality and fares. For example, if an operator wishes to run a coach-type service or an air-conditioned coach-type service at a different fare, that would be considered to be aiming at a different market segment, even if the route duplicates the basic bus routes.

Dr Vasoo: Why does the Minister not allow private operators to compete with SBS and other related operators in the new town?

Mr Mah Bow Tan: As I have explained earlier, the main bus operators, in this case, SBS and TIBS, are obliged to operate a universal service obligation, which means that we expect them to run both the good as well as the bad services. In other words, they enjoy the meat but they also have to operate some bones. If we allow private bus operators to only go for the meat, then I am afraid it is very difficult for us to also equally require the operators to go and take some of the less profitable or even unprofitable services. So there is a question of fairness involved here.

Dr Vasoo: When the Minister mentioned about enjoying the meat in the new towns, does he mean the operators can also share?

Mr Mah Bow Tan: There is also a lot of bones. So if private operators are prepared to take some of the bones as well, then we can consider their application.