BUS AND MRT FARE INCREASES

Mr R. Ravindran asked the Minister for Transport why has the Public Transport Council approved fare increases by the bus and train operators in view of the present economic difficulties faced by many Singaporeans.

Dr Amy Khor Lean Suan asked the Minister for Transport (a) what is the Public Transport Council's (PTC) justification for the increase in bus and MRT fares during such difficult times, when there are expected increases in car parking charges and goods and services tax and when the transport companies are still reporting very decent profits and (b) whether deferring the PTC's increases by six months to a year will put the operators under water.

Dr Ong Seh Hong asked the Minister for Transport if he (a) is satisfied that the transport companies' justification for fare hike is to meet rising operating cost; (b) will elucidate, in the light of a lower corporate tax, reasonably stable oil prices, cut-back in Government charges and lower unit labour cost, the factors causing the operating cost to increase; and (c) will state what have the companies done to improve their cost effectiveness and productivity instead of raising fares to maintain their profitability.