AFFORDABLE BUS SERVICES

Dr Toh See Kiat asked the Minister for Communications (a) whether he will consider giving more rebates to poorer Singaporeans to make basic bus services more affordable for them and (b) whether the Government will give more subsidies to provide the infrastructure and capital stock of public bus services so that bus services can remain viable yet affordable to the average commuter.

The Minister for Communications (Mr Mah Bow Tan): Mr Speaker, Sir, in answer to Dr Toh's question, let me first of all say that our bus fares today are affordable. They remained unchanged between 1982 and 1990, and they increased only modestly after 1990. Average fare increase between 1990 and 1996 was 1.3%. The CPI increase over the same period was 2.6%. The fare increase was below CPI, and CPI in turn was below the increase in wages over that same period, which was 7.4%. So the increase in fares has been way below the increase in wages.

In the recent fare revision approved by the Public Transport Council, bus fares were revised upwards by between 5 cents and 10 cents for commuters who use cash. There was no fare revision for commuters using fare-cards on airconditioned services. This constitutes about one-third of bus commuters. So one-third of bus commuters were not affected by the recent fare revision. As for MRT, only the single-trip cash fare was adjusted upwards by 10 cents. Again, those who opted for fare-cards were not affected, and this constitutes about 70% of MRT passengers.

Even as we strive to provide a wide range of public transport options for our commuters, we will continue to ensure that basic fares remain affordable. The Public Transport Council has recently adopted a framework to ensure that any future bus or MRT fare increases will be in small, regular and controlled steps. From 1998, fare increases will be capped at no more than inflation plus 2% for the next three years. There is therefore no need for a special bus fare rebate.

On the issue of Government subsidy for scheduled bus services, our bus operators have been able to keep bus fares affordable because of strong Government support over the years. Besides providing the roads and expressways for the buses to travel on, the Government also bears the cost of bus infrastructures, such as bus interchanges and bus stops. The bus operators pay a nominal rent of $12 a year for each bus interchange. The bus operators only need to pay for their maintenance.

In addition, the Government helps scheduled bus operators keep their cost low by exempting their buses from COEs and imposing low vehicle taxes. Last but not least, the Government has taken various steps to improve the operating environment for scheduled buses. By controlling the vehicle population, by implementing road pricing and establishing bus lanes, scheduled buses are able to move quickly and reliably, thus saving the bus operators valuable time and money. The bus companies have therefore been viable under this operating environment with minimal fare increases over the years.