NSP rebuts "cherry picking" comment by Lui Tuck Yew
By Ambiga Raju | Posted: 01 August 2011 1149 hrs <LINK rel=image_src href="http://www.channelnewsasia.com/imagegallery/store/phpllo7SG.jpg">
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SINGAPORE: The National Solidarity Party (NSP) has responded to Transport Minister Lui Tuck Yew's argument that its proposal for more competition in bus services would lead to "cherry-picking" of lucrative routes by multiple operators and hence be negative for commuters.
In a statement on Monday, NSP's Secretary-General Hazel Poa said lucrative routes are "lucrative because demand is high, and more commuters are packed into each bus".
She said "cherry-picking" then by multiple operators would mean more buses along these routes, leading to shorter waiting time, less congestion in the buses and hence more comfortable rides, and more competitive pricing.
With greater supply, the party said, the lucrative routes would become less lucrative.
It said the "cherry" could swiftly turn into a "lemon", forcing inefficient players out, and slowly turn into the common "apple".
Ms Poa also said the licence fee for the "lucrative" routes can be used to subsidise the operation of non-profitable routes.
The debate over transport was sparked by a proposal from the opposition Workers' Party (WP) for a not-for-profit National Transport Corporation to replace the current two listed public transport companies.
Mr Lui had said the WP's proposal had "serious downsides" with commuters and taxpayers likely to end up paying more.
The NSP entered the discussion arguing for more competition in bus services.
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By Ambiga Raju | Posted: 01 August 2011 1149 hrs <LINK rel=image_src href="http://www.channelnewsasia.com/imagegallery/store/phpllo7SG.jpg">
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Hazel Poa (NSP) | ||||||
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SINGAPORE: The National Solidarity Party (NSP) has responded to Transport Minister Lui Tuck Yew's argument that its proposal for more competition in bus services would lead to "cherry-picking" of lucrative routes by multiple operators and hence be negative for commuters.
In a statement on Monday, NSP's Secretary-General Hazel Poa said lucrative routes are "lucrative because demand is high, and more commuters are packed into each bus".
She said "cherry-picking" then by multiple operators would mean more buses along these routes, leading to shorter waiting time, less congestion in the buses and hence more comfortable rides, and more competitive pricing.
With greater supply, the party said, the lucrative routes would become less lucrative.
It said the "cherry" could swiftly turn into a "lemon", forcing inefficient players out, and slowly turn into the common "apple".
Ms Poa also said the licence fee for the "lucrative" routes can be used to subsidise the operation of non-profitable routes.
The debate over transport was sparked by a proposal from the opposition Workers' Party (WP) for a not-for-profit National Transport Corporation to replace the current two listed public transport companies.
Mr Lui had said the WP's proposal had "serious downsides" with commuters and taxpayers likely to end up paying more.
The NSP entered the discussion arguing for more competition in bus services.
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