Minister Khaw also wants commuters to feel the full price of public transport

The government has created an inflation spiral to boost GDP figures. After the water price increase, public transport fare increase akan datang. (CNA article, “Need to strike balance in transport cost burden: Khaw Boon Wan”. link)

Khaw: ”Over the years, taxpayers have had to subsidise more of the rising operation costs as public transport fares have not kept up … strike a fair balance in the proportion of transport costs that will be borne by commuters, taxpayers and operators”.

Is Khaw unaware that commuters are also taxpayers? And isn’t it strange that there are no statistics to support such a ludicrous claim?

Khaw also ignores the fact that both PTOs are very profitable – earning tens of millions in guaranteed profits from non-fare revenue such as advertising, rental, etc.

Just last month, SBS Transit reported its profit had increased by a whopping 87.6% in FY 2016.

BT article

And SMRT will soon be reporting a similar sterling set of results but unfortunately, the company has been taken private by …. Temasek. How much will go into the pockets of leeches at SMRT and Temasek?

By arbitrarily increasing fares, commuters are being ripped off because PAP has privatised profits and socialised costs. CEOs and top management of Temasek, SMRT and SBS will get to reap huge ‘performance-related’ bonuses, courtesy of commuters.

Khaw: “..significant improvements to the country’s public transport network require high capital investments and will incur higher operating costs.”

Whether capital investment costs are high is relative to GDP growth. If spending $20 billion in capital investments increases our GDP by $300 billion, the costs will be eventually recouped from higher taxes. There is no need to increase public transport fares.

Commuters should not be kept in the dark on PAP’s planning – PAP is spending billions on capital investments in anticipation of a 10-million population.

One of the reasons for MOT’s high expenditure – poor/zero planning. This can be easily observed from the sudden widening of almost every road which can be widened only after – not before – an exponential increase in the population.

The Bukit Panjang LRT is a classic example of PAP’s shortsightedness. This $285 million 2- instead of 4-car system did not take into account population increase and has to be replaced after only 18 years. Which government in the universe has replaced an entire LRT system in less than 19 years?

Khaw has asked the PTC to review the fare formula but has cautioned commuters on the “possibility for an upward fare adjustment”.  Khaw also hopes that “commuters will be understanding”.  But will Khaw be understanding if his pay is reduced as many times as our costs have been increased?

Since the PTC is not an independent body, Khaw is actually hinting that a decision has already been made by PAP.  Never mind what commuters think?

Are these PAP-appointed jokers who don’t rely on public transport independent?

Like MEWR Minister Masagos, it appears Hara Kiri Khaw also wants commuters to feel the full price of public transport.

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3 Responses to Minister Khaw also wants commuters to feel the full price of public transport

  1. sinkie says:

    Public transport is following the same tactic as water — taking money from people now in order to pay for future new buses, new mrt, repair works, compensation for dead staff, “fines” for train delays, etc etc.

    The problem is that all these future “significant investments” in public transport should have been catered for in govt spending & govt budget with the hundreds of billions PAP collects in taxes each year. By continuously raising public transport fares, what PAP has done is to tax the commuters directly but spare those richer taxpayers who drive.

    The whole mentality of PAP seems to be pushing the everyday costs (utilities, GST, public tpt) onto the less well-off masses, while immunizing much of the richer class. I.e. An insidious tax on the poor for most of the basic daily necessities. This is a regressive hidden tax regime that disproportionately taxes the poor more than the rich.

    What Budget 2017 has proofed is that the income tax regime favouring low taxes for the rich is not sustainable & insufficient to pay for the essential necessities to support the targeted population of 7M or 10M. Instead of correcting the core issues (i.e. tax regime and/or population growth) PAP prefers to screw the masses for the money instead.

  2. Peter Yip says:

    Flat screen TV cost $20,000 when it first went on sale. Now only $800. Nokia was $600. Now only $40. Every consumer good has seen price dropped and specifications improved. We should expect the same for water and electricity. Every corporation would have, after 50 years of doing the same thing, learned enough to lower all costs in production resulting in a lower selling price.

    • Phillip Ang says:

      Actually PAP has been self inflating costs to create a ‘tiger’ economy façade. Remove the foreigner population above what we really need and arbitrary cost increases, where would our GDP be? More of the same from PAP to come. 😦

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