SINGAPORE: A high-level panel tasked with studying public transport fares has recommended an improved public transport concessions framework.
One million commuters are set to benefit if the government accepts and implements this concessions framework.
With the goal of keeping public transport fares affordable, the Fare Review Mechanism Committee (FRMC) has proposed two new concession schemes targeted at low-income workers and persons with disabilities.
It also recommended that the government funds these two schemes without imposing this as a financial burden on public transport operators.
The committee also proposed significant enhancements for existing schemes.
One is allow children below the age of seven to travel for free instead of using the current height criterion.
Another change proposed is a Monthly Travel Pass to be made available to adult commuters who frequently use public transport.
This will help them save on their monthly expenditures on bus and train rides.
Also recommended is an adjustment of the prices of various Student Monthly Concession Passes that could benefit polytechnic students.
The committee also recommended that public transport operators provide more help to the Public Transport Fund.
The fund helps needy families adjust to the impact of public transport fare increases.
Currently, the government is the primary source of funding for this fund, with transport operators contributing voluntarily.
To provide more resources to the fund, the committee recommended a formal mechanism be put in place for these operators to contribute a portion of the fare increase they receive to the fund.
In addition, it suggested that the government could continue to co-fund appropriate contributions to the fund, while financial penalties imposed on these transport operators' service lapses should also be channelled toward the fund.
The committee noted that energy costs have become a significant part of the transport operators' overall operating costs.
So it has proposed a more responsive fare formula that will include a new Energy Index (EI) component.
This is to ensure that transport operators remain financially viable while keeping fares affordable.
The committee also proposed that fares be adjusted regularly through annual fare review exercises to account for operating cost increases.
This will help mitigate the adverse impact of fare adjustments on commuters since significant fare hikes may be avoided.
In addition, the committee proposed that the Public Transport Council (PTC) be given the discretion to roll over a portion of the quantum of fare adjustment in a particular year to the next fare review exercise.
The Transport Ministry said it is studying the recommendations and will give an official response next week.
Meanwhile the PTC said it welcomes the recommendations and will examine them carefully.
Following the government's decision on the recommendations, the PTC will then deliberate and implement the adopted measures.
It would do so to fulfil its mission of safeguarding the interests of the public while ensuring the long-term viability of the public transport operators.
- CNA/ir
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