Why not give the S$1.1billion to improve school bus instead

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 10:59:33 GMT

HVR — Thu, 01 Mar 2012 10:59:33 GMT

SINGAPORE: Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said that any profit made from the $1.1 billion package for public transport operators (PTO) to grow their bus fleet will go back to the government.

Mr Tharman said $280 million is budgeted for the purchase of 550 buses over the next five years, while the remaining $820 million is to cover the net operating costs of the buses for 10 years.

He said the 550 additional buses is projected to be a loss-making operation, and so the $1.1 billion package is expected to cover the losses.

Mr Tharman said the government will scrutinise operators’ accounts. And should operators ever turn a profit or make lower losses, the government funding will be reduced correspondingly.

A review will also be conducted in five years to check parameters of the agreement.

Mr Tharman said: "The $1.1 billion package is expected to cover the losses of the 550 buses, in other words, the additional costs, net of revenue of the $1.1 billion package. $280 million is budgeted for the purchase of the 550 buses over the next five years and $820 to cover the net operating costs for 10 years.

"This is based on the best estimates currently. However, we will be monitoring and scrutinising the PTOs’ actual costs, for both the purchase and the running of the buses. Should their losses turn out to be lower than expected, the government funding will be reduced correspondingly. So one way or another, there are no profits to be made from the 550 buses."

"We expect them to make losses based on their all existing parameters. If we are lucky and somehow the system is re-engineered, so that the losses are less than expected, or most unlikely if they turn a profit, that will not come from the government, the $1.1 billion will be reduced, as their losses are reduced, and if they make a profit, it all comes back to us.

"So none of the $1.1 billion will go towards profits of the public transport operators. It will be ring-fenced, their accounts will be scrutinised, we will be paying according to what the costs actually are. There is a review in five years to check the parameters of the agreement."

Mr Tharman said the package is a subsidy for commuters and not a subsidy for operators.

He said without the government stepping in to help boost bus capacity, the significant service levels improvements would only be achievable if fares are raised sharply.

He added that if operators had to do it on their own, their fare revenues would have had to go up, by about 12 to 13 percent. And this translates into an increase in passenger fares, of about 15 cents per journey.

Mr Tharman said: "How much is 12-13 percent? In the last five years, since 2006, fares went by 0.3 percent, so 12-13 percent is quite a significant leap compared to what we have seen in the last five years. That would have been the only way for us to achieve the service levels improvements if the government has not stepped in.

He said the $1.1 billion government package, or $110 million each year, is to step up bus service levels well beyond the current service levels required of the operators.

He said it will increase bus capacity on existing heavily-utilised routes, making them less crowded and giving commuters more pleasant journey.

The number of new bus services will be added to improve connectivity.

He said the PTOs will have to improve service levels as a condition for the government’s investment.

Mr Tharman said: "We cannot simply mandate the PTOs to add the 550 buses. First, because it goes significantly beyond the current service levels of the current regulatory framework. Second, the PTOs bus operations are already running operating losses and the additional 550 buses in particular are projected to be a loss-making operation.

He said despite the government package, and independent of the government package, regular and incremental fare increases will continue to be necessary as wages and operating costs rise.

He said this is so that bus industry can stay financially viable.

Mr Tharman said the government will also continue to make sure that needy commuters get adequate assistance for their transport expenses.

- CNA/de

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 10:34:47 GMT

Oppsgal — Thu, 01 Mar 2012 10:34:47 GMT

WeiHan:
verykiasu2010:
[quote=\"WeiHan\"]No....I don't think is so simple....long term effect is that you have no local talents because nobody bothers to nurture any. as a result, Singapore taken over by foreigners and most native borned just become slaves like the red indians when british colonised america.

fat hope they \"colonise\" singapore.....a good transit hub yes

Not joking you know...I know work places where most workers are foreign and the bosses are foreign and the locals worked like slaves...The foreign learnt the trick of only working hard when bosses are around...and anyway, our own LKY has already instill the stigma that locals are lazy.[/quote]So... where to learn to be lazy?

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 10:26:13 GMT

Joule — Thu, 01 Mar 2012 10:26:13 GMT

you heard about that one between SBS and transport minister?

When TM ask SBS to improve their service

they said very loudly

TUCK YEW, UNDERSTAND? We need more $$

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 09:35:48 GMT

WeiHan — Thu, 01 Mar 2012 09:35:48 GMT

verykiasu2010:
WeiHan:
No....I don't think is so simple....long term effect is that you have no local talents because nobody bothers to nurture any. as a result, Singapore taken over by foreigners and most native borned just become slaves like the red indians when british colonised america.

fat hope they \"colonise\" singapore.....a good transit hub yes

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 09:19:22 GMT

tutormum — Thu, 01 Mar 2012 09:19:22 GMT

Why not top up every Singaporean's ezlink card with $50 worth of credit. Better than giving them the money directly. :roll:

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 09:09:58 GMT

1amber — Thu, 01 Mar 2012 09:09:58 GMT

verykiasu2010:
WeiHan:
No....I don't think is so simple....long term effect is that you have no local talents because nobody bothers to nurture any. as a result, Singapore taken over by foreigners and most native borned just become slaves like the red indians when british colonised america.

fat hope they \"colonise\" singapore.....a good transit hub yes

kinda like bus interchange...no wonder must buy 'em somemore buses wif our money...

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 08:58:38 GMT

verykiasu2010 — Thu, 01 Mar 2012 08:58:38 GMT

WeiHan:
No....I don't think is so simple....long term effect is that you have no local talents because nobody bothers to nurture any. as a result, Singapore taken over by foreigners and most native borned just become slaves like the red indians when british colonised america.

fat hope they \"colonise\" singapore.....a good transit hub yes

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 08:33:54 GMT

WeiHan — Thu, 01 Mar 2012 08:33:54 GMT

No…I don’t think is so simple…long term effect is that you have no local talents because nobody bothers to nurture any. as a result, Singapore taken over by foreigners and most native borned just become slaves like the red indians when british colonised america.

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 08:19:57 GMT

1amber — Thu, 01 Mar 2012 08:19:57 GMT

Long term effect - some people get super rich from the super world class pay because their pay is pegged to the GDP which is produced by the statistics department which is full of …whilst the rest of the uncles and aunties and ordinary citizens have to squeeze into mrts…

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 07:51:46 GMT

WeiHan — Thu, 01 Mar 2012 07:51:46 GMT

But the government has opened such a floodgate for immigrants that our public transport system can no longer support the flow efficiently. I am still experiencing alot of MRT hiccups…

As I have said, the root of the problem is importing too many foreign talents and workers too quickly without proper planning and in the expense of native Singaporeans with birth rights. How do they prove that it has benefited Singapore? Even hard cold numbers tell us that our productivity has dropped after we opened our floodgate. I don’t even want to contemplate long term effects. They have no patience at all nurture own talents but only want quick results by parachuting in questionable foreign talents. What will be the long term effect?

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 07:50:17 GMT

EllaEmma — Thu, 01 Mar 2012 07:50:17 GMT

double post

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 07:44:49 GMT

EllaEmma — Thu, 01 Mar 2012 07:44:49 GMT

and polytechnic students… especially our fellow SG’s children…

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:58:22 GMT

verykiasu2010 — Thu, 01 Mar 2012 04:58:22 GMT

Joule:
gahmen

where they can give 1.1. billion to listed company to buy more bus

but when you want them to subsidize medical care more they dowan

that wan can go JB ..... buses, i guess, cannot ? :evil: :evil: :evil:

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:48:54 GMT

Joule — Thu, 01 Mar 2012 04:48:54 GMT

gahmen

where they can give 1.1. billion to listed company to buy more bus

but when you want them to subsidize medical care more they dowan

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:45:10 GMT

1amber — Thu, 01 Mar 2012 04:45:10 GMT

limlim:
verykiasu2010:

The S$1.1billion could have been used to fund school buses
No. School buses are private operators too.

Instead, get SBStransit to run school bus services at subsidized rates better.. :evil: :evil:

:rotflmao:

but $S1.1b a lot of money leh. I think can give free school bus rides till the next GE lah.

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:29:32 GMT

limlim — Thu, 01 Mar 2012 04:29:32 GMT

verykiasu2010:

The S$1.1billion could have been used to fund school buses

No. School buses are private operators too.

Instead, get SBStransit to run school bus services at subsidized rates better.. :evil: :evil:

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:27:49 GMT

tankee — Thu, 01 Mar 2012 04:27:49 GMT

There are many different areas where this huge taxpayers’ money could be better used.

Giving it to listed profit oriented and profit making companies is definitely NOT one of them.

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 04:07:21 GMT

1amber — Thu, 01 Mar 2012 04:07:21 GMT

verykiasu2010:
the public bus companies are listed companies earning huge profits

each time the PTC approve their request for bus fare increase being \"justified\" by higher operating cost -- and yet now the gov't decide to throw S$1.1 billion of our money to them, so that they can fleece us more through fare increase as justified by EVEN higher cost as a result of the fleet increase initiated and paid by the gov't ?

I don't see the logic to the S$1.1 billion question. Their shareholders should foot the bill, not tax payers

Exactly!

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 03:04:24 GMT

BlurBee — Thu, 01 Mar 2012 03:04:24 GMT

Great idea, vks2010. :goodpost:

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 02:59:29 GMT

verykiasu2010 — Thu, 01 Mar 2012 02:59:29 GMT

the public bus companies are listed companies earning huge profits

each time the PTC approve their request for bus fare increase being "justified" by higher operating cost – and yet now the gov’t decide to throw S$1.1 billion of our money to them, so that they can fleece us more through fare increase as justified by EVEN higher cost as a result of the fleet increase initiated and paid by the gov’t ?

I don’t see the logic to the S$1.1 billion question. Their shareholders should foot the bill, not tax payers

The S$1.1billion could have been used to fund school buses

Reply to Why not give the S$1.1billion to improve school bus instead on Thu, 01 Mar 2012 02:58:55 GMT

Mawar — Thu, 01 Mar 2012 02:58:55 GMT

This idea, I like!

:dancing:

I hope more students would take the school bus.
I hope school bus fare would be subsidized.
I hope every child gets a proper seat which comes fitted with seat belt.
I hope there is provision to send students home after CCA.