NORTH-EAST MRT LINE (Construction)

Mr Low Thia Khiang asked the Minister for Communications whether the Government has decided to proceed with the construction of the North-East MRT line forthwith.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, the decision to build the North-East line has been taken in principle. The decision on when to start work is now under active consideration. The Government will pay for the capital cost of the North-East line including the first set of trains if the operator can recover the operating cost including the cost of replacing the trains from fare revenues. Such a principle is a fair and prudent one. It ensures that any MRT extension, both now and in the future, is valued and is well used.

Based on our financial analysis, we can start building the North-East line in about four years' time when there will be enough ridership to meet the operating cost based on the current fare structure. The Land Transport Authority has been asked to review and recommend ways, including having commuters pay a slightly higher fare, if necessary, to enable earlier expansion of the MRT network and to help us achieve a world-class transport system for Singaporeans. A White Paper on Land Transport will be released later this month. Singaporeans will be invited to give their views and their comments on this and other proposals in the White Paper. After Parliament has debated the White Paper, the Government will decide on the timing for the North-East Line.