SCHOOL BUS FARES

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SCHOOL BUS FARES: 3.

Assoc. Prof. Ong Soh Khim asked the Minister for Transport whether his Ministry will request the Singapore School Transport Association to periodically and extensively publish the detailed breakdowns of the components that constitute the monthly school bus fares charged by the school bus companies under this Association so as to enhance transparency in the frequent requests for fare adjustments.

4.

Assoc. Prof. Ong Soh Khim asked the Minister for Transport whether his Ministry has plans to stipulate that the Singapore School Transport Association submits future school bus fare increases to the Public Transport Council for approval, similar to the requests for transport fare increase made by the public transport providers.

The Minister for Transport (Mr Yeo Cheow Tong): Mr Speaker, as Question Nos. 3 and 4 are addressing the same issue, may I take them together?

Mr Speaker: Yes, please.

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Mr Yeo Cheow Tong: Thank you. Sir, Prof. Ong asked for school bus fares to be regulated by PTC. School bus fares, unlike public transport fares, do not follow a common fare structure because school bus services are contractual in nature and are based on the mutual agreement between the bus operators and the parents of school children. The school bus services do not operate along fixed routes. Also, the monthly school bus fare could vary significantly depending on factors such as distances travelled, pick-up locations, number of children ferried per trip from that location, and any other arrangements agreed between the bus operator and the school or parent. As such, school buses do not come under the purview of the Public Transport Council (PTC) Act, which provides for the regulation of scheduled bus services.

While we do not regulate their fares, on its part, LTA has put in place measures to help school bus operators keep their operating costs low. For example, operators owning registered CB plate school buses are exempted from paying the Quota Premium when they replace their older buses, or the Prevailing Quota Premium.

LTA has also introduced competition in the school bus service sector, by allowing owners of private hire and excursion buses to also provide school transport services. As these buses are not exempted from the Vehicle Quota System, the owners are given a 50% road tax rebate on such buses to partially offset the cost of the COE.

With regard to Prof. Ong's request for more transparency in the fare adjustments, she will be pleased to know that the Singapore School Transport Association (SSTA) has taken some steps in this direction.

In its press conference on 27th December last year to announce the fare

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increases for school bus services, SSTA explained why the fare increase was necessary and how the recommended fare range was derived. SSTA also stated that its recommendations were based on a commissioned study which identified the various cost elements of school bus operations.

Such efforts by the SSTA to be more transparent and accountable to the public are commendable and should be encouraged. Prof. Ong may wish to contact SSTA directly for the study report if she would like to understand the fare increase better.

Assoc. Prof. Ong Soh Khim (Nominated Member): Sir, my first question is: is the Ministry satisfied with the reasons given by the bus operator for collecting bus fares during the holiday months of the school? Because, apparently, many of these bus operators use their buses for other purposes to earn extra income during the holidays, for example, ferrying tourists and other excursion trips. So in a way, they are actually making profits. Is the Ministry satisfied that they should collect bus fares from the parents, especially from the low-income parents, when $30 or $40 per month is a lot of money to a low-income family?

My second question is, since they do not come under the purview of PTC and the Ministry, is the Ministry and PTC aware that the consumers, that is, the parents, are being exploited by these bus companies? For example, class starts at 1.00 o'clock, the bus operator will insist to come and pick up the kids at 11.15am when the kids barely even have time to have their lunch at home. In a way to maximise their profits, they are exploiting the consumers. So would the Ministry do something on this?

Mr Yeo Cheow Tong: Sir, on her two questions, whether we are satisfied that the school buses are collecting fares

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during the school holidays, as I mentioned just now, the school bus service is a contractual service between the parents and the service provider. It is therefore up to them to work out the terms and to abide by the terms. If the parents do not agree with the terms, I am sure they can find other alternatives. Similarly, the second question on whether the consumers are exploited because the school buses pick up the students so early, I am sure the bus operators have got good reasons. Again, if the parents do not agree, they can always look for another school bus service or find other alternative means of transport. And the public transport system is right there for them to make full use of.

Assoc. Prof. Ong Soh Khim: Sir, I was a student myself in primary and secondary schools. I was taking the school bus then and my parents had to pay, although we were very poor.

Mr Speaker: No speeches, Prof. Ong. Your question, please.

Assoc. Prof. Ong Soh Khim: The parents are not able to come to a proper compromise with the bus operator. Therefore, I would like to request if the Ministry would come in to slaughter this sacred cow which has been there for 30-40 years.

Mr Yeo Cheow Tong: Sir, I have to repeat my answer. We are not responsible for regulating school buses and therefore will not be involved.