Public Transport Council to reduce bus and train fares
By Asha Popatlal, Channel NewsAsia | Posted: 23 January 2009 1443 hrs
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Public Transport Council to reduce bus and train fares
SINGAPORE: Bus fares and train fares are set to come down, giving commuters the break many have been asking for against a worsening economic situation.
But details of how much fares will be reduced will only be known at the end of February.
The unusual move came just a day after the government unveiled a massive S$20.5 billion Budget, where a big focus was on helping companies cope with costs.
Public transport operators SBS Transit and SMRT followed up with statements to say they will not apply for any fare adjustment this year.
SBS Transit said it also did not apply for fare increases in 2003 and 2004 because of poor economic conditions. In 2003, it was because of the SARS outbreak and in 2004, it was because the company felt economic growth had not yet taken root.
Welcoming the move, the Public Transport Council (PTC) said it is glad to know operators are also ready to work with it to reduce bus and train fares.
And cheering the move were some commuters.
One said: "We are using public transport every day, so it will benefit us."
The second said: "For me, not much - only one month, save a few dollars, which is only for one meal."
Another said: "A little savings goes a long way."
While no details are available yet, commuters were most interested in finding out just how significant the reductions will be.
PTC said it will have to sit down with the operators and work out the numbers before coming up with a plan.
And instead of the traditional third quarter review, the PTC will expedite its work and announce details of the cuts by the end of next month.
In Singapore, public transport fares are adjusted annually based on a fixed formula that takes into account factors such as wage rises and inflation.
In fact, if this is being followed strictly, the maximum fare hike this year can be five per cent, according to SMRT, looking at data from January through to November. But there is ground for flexibility with this formula as PTC also has to take into account the general economic and job conditions before making a final decision.
Another form of public transport also stands to benefit.
The government announced in its Budget Statement it is giving a 30 per cent road tax rebate and a special tax waiver for taxis that are not hired out.
All taxi companies have agreed to pass on these cost savings to their drivers, and details of how this will be done are being worked out.
In a statement, Transport Minister Raymond Lim also welcomed the news, saying he understood the concerns of Singaporeans over transport costs in these times.
- CNA/yb/yt
By Asha Popatlal, Channel NewsAsia | Posted: 23 January 2009 1443 hrs
Photos 1 of 1
Related Videos
Public Transport Council to reduce bus and train fares
SINGAPORE: Bus fares and train fares are set to come down, giving commuters the break many have been asking for against a worsening economic situation.
But details of how much fares will be reduced will only be known at the end of February.
The unusual move came just a day after the government unveiled a massive S$20.5 billion Budget, where a big focus was on helping companies cope with costs.
Public transport operators SBS Transit and SMRT followed up with statements to say they will not apply for any fare adjustment this year.
SBS Transit said it also did not apply for fare increases in 2003 and 2004 because of poor economic conditions. In 2003, it was because of the SARS outbreak and in 2004, it was because the company felt economic growth had not yet taken root.
Welcoming the move, the Public Transport Council (PTC) said it is glad to know operators are also ready to work with it to reduce bus and train fares.
And cheering the move were some commuters.
One said: "We are using public transport every day, so it will benefit us."
The second said: "For me, not much - only one month, save a few dollars, which is only for one meal."
Another said: "A little savings goes a long way."
While no details are available yet, commuters were most interested in finding out just how significant the reductions will be.
PTC said it will have to sit down with the operators and work out the numbers before coming up with a plan.
And instead of the traditional third quarter review, the PTC will expedite its work and announce details of the cuts by the end of next month.
In Singapore, public transport fares are adjusted annually based on a fixed formula that takes into account factors such as wage rises and inflation.
In fact, if this is being followed strictly, the maximum fare hike this year can be five per cent, according to SMRT, looking at data from January through to November. But there is ground for flexibility with this formula as PTC also has to take into account the general economic and job conditions before making a final decision.
Another form of public transport also stands to benefit.
The government announced in its Budget Statement it is giving a 30 per cent road tax rebate and a special tax waiver for taxis that are not hired out.
All taxi companies have agreed to pass on these cost savings to their drivers, and details of how this will be done are being worked out.
In a statement, Transport Minister Raymond Lim also welcomed the news, saying he understood the concerns of Singaporeans over transport costs in these times.
- CNA/yb/yt
