MASS RAPID TRANSIT OPERATORS

MASS RAPID TRANSIT OPERATORS

1.

Mr Steve Chia Kiah Hong asked the Minister for Transport whether Parliament will be consulted for approval if there is a proposed merger of the two Mass Rapid Transit train operators as reported in the public media.

Mr Yeo Cheow Tong: The Land Transport Authority (LTA) has not received any proposals for a merger from the operators. However, if there is a proposal, it will be studied by the LTA. This is because the regulation of the Rapid Transit Systems (RTS) industry is governed by the RTS Act, and executed by the LTA. Under this framework, LTA is responsible for the licensing of the operators of the RTS lines and for regulating their operations. Such a framework, where the power to regulate is vested in an appointed authority through legislation, is no different from that of other regulatory functions undertaken by the Government and the statutory boards.

Hence, the consideration of proposals by RTS operators to transfer RTS lines is a regulatory function and would not be raised in Parliament for approval. However, Members can be assured that in deciding on such applications, LTA and the Government will take into consideration the interests of both the industry and commuters. Members may of course raise the matter in Parliament through a Parliamentary Question.

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