Lui Tuck Yew
Singapore
“What they do is that they report to me on a three-monthly basis. After the December 2011 incident, I felt that the way LTA was overseeing the operators needed some improvement. In the past, we were looking at the outcomes and the indicators that we get every so often.”
“SMRT has also combed through the tunnels to ensure that there are no other leaks with water dripping onto trackside installations and will be installing data loggers at all traction power substations within the next two months to better monitor the condition of the insulators.”
“But because we think that actually it could have lasted us longer if it was better maintained over the years, therefore, you also take a discount from what the Government would otherwise have to pay. But the formulas are all set out in the White Paper. I believe I have answered the Member's questions.”
“The tight labour market is, indeed, a challenge for the bus industry. To address this, a multi-pronged strategy is needed. To attract more local bus captains, both operators have raised entry level base monthly salaries by about $400 since the Bus Service Enhancement Programme (BSEP) commenced in 2012.”
“Over the past three years, there were 355 cases of fare evasion and 162 cases of passengers assaulting taxi drivers. Passengers found guilty of fare evasion may be fined up to $1,000 and repeat offenders may be fined up to $2,000 or jailed for up to six months, or both.”
“The insolvency of Alpine Bau affected the completion timeline of three stations, namely, Tan Kah Kee, Sixth Avenue and King Albert Park, and their associated tunnels.”
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Every one of 597 lines we hold for Lui Tuck Yew, in date order, each linked to its source. Free to read, in full, without an account. Page 3 of 12.
“Firstly, on Mr Liang's suggestion to continue to run PBS, I understand the point that he has raised. I fully empathise with the concerns of the residents and, indeed, as I mentioned right at the very beginning of my reply, this series of incidents, not just in the Bukit Panjang LRT but across some of the entire MRT network, has undermined confidence in the public transport system. It is something that we will need to work hard to review, and I give you my full assurance that we will be watching this very, very closely. Having said that, I also know that, basically, we need to use our resources to the best that we can. We deploy as many buses as we can certainly during the morning and peak hours because there are those who rely on buses. They would like buses to come more regularly. I am loath to pull more resources out from the bus network in order to have them stand by or in order to have them back up the Bukit Panjang LRT system. Where it is possible for us to have some buses and, if there are some drivers available, I will certainly try to do so. But I think, to have a full back-up for the BPLRT system over a slightly extended period of time, may perhaps not be the best way to use the resources. On the overall health check, it is important for us to try and see if there are clear trends in terms of the disruptions and breakdowns that we are facing. Post-December 2011, after Page: 114 the third rail incident, we did something similar for the North-South and East-West lines, and were able to identify particular trends with regard to train breakdowns, for instance, if I were to just give you an example. So sorry, it is a slightly long answer, but I thought it is useful to explain some of these in context.”
“Mdm Chair, let me thank Ms Sylvia Lim for her questions. Yes, indeed, we conducted a couple of reviews in 2011 and 2013 with all the recommendations to be implemented fully by 2017. In part, it is also because the operator is expanding the depots and some of these will need to be implemented in time with the expansion of facilities. 5.15 pm The intrusion, yes, indeed, it was over three consecutive days and not detected by the operator. Again, I would say that the point I wanted to make earlier was the need to have a layered defence and not rely only on a particular set of instruments or a particular set of technologies. So, it is not just fences, cameras and physical patrols because, in this case, I believe they came underground. Therefore, the final check against both graffiti and potential terrorist incidents is to have the train captains make a physical check of the train prior to it being deployed. That is the final check that we must make and the one that we enforce the most stringently. On the Government's role, yes, we conduct ground audits. It is not just an audit of their plans. People actually go on to the ground. These are security experts from MHA.”
“There seems to be so much interest in ERP this year, so I will just add to what Mrs Josephine Teo has said. On expressways, the speeds that we try to reach will be between 45 km/h and 65 km/h and this is also in reply to Mr Gan Thiam Poh's query. So, when it is above 65 km/h, and we monitor this over several quarters, then we are able to reduce or remove the ERP charges. And when it is consistently below 45 km/h, then we raise the charges for a particular time belt. Lest we think that all these charges are merely about revenue generation, I may want to add that, last year, the revenue collected was about $152 million; previous years, it was consistently about $160 million. This was, in part, because of the opening of MCE. I think some Members may remember that after the MCE opened, we lowered the ERP charges along the ECP on three consecutive quarters. On arterial roads, we have a slightly different set of speed parameters, I believe it is between 20 km/h and 30 km/h. Again, if it is consistently above the upper threshold, we reduce; likewise, we increase if it is consistently below. On Orchard Road, in response to Mr Seah Kian Peng's and Mr Lim Biow Chuan's suggestions in recent years, we have delayed the start of the ERP charges on Saturdays. But we still feel that there is a need to have ERP on Saturday afternoons. For those who find the ERP charges a burden, then maybe the possibility is for them to shop on Sundays instead because it is entirely ERP-free on Sundays and the traffic speeds are actually a little bit better. On Nicoll Highway, Members may recall that we shifted the gantry just two years ago. There is no intention to shift it somewhere else.”
“Mdm Chair, I think the Member has framed the question in the wrong way. It is not about maximising cost efficiency. It is about maximising the use of the capacity and space on board the trains. So, for commuters today, who may have to wait for a second train before they board, I think their wish is to be able to board the first train as much as possible. And if we under-utilise the capacity, especially during the peak hours, then it will exacerbate the crowding problem that we have. As I mentioned very briefly in dealing with this subject earlier, the satisfaction survey covers a number of attributes and the attribute that scored the highest for at least the last two years that I know of is the attribute related to safety and security. This is for the MRT system. So, yes, about the incidents, they have gone up and I also agree that some may be under-reported or may not have been reported at all. I think the situation in Singapore is very different from a number of other countries that may have no choice but to institute such a measure even at the expense of the inefficiency in terms of utilising the capacity.”
“Since 2007, almost 20,000 individuals have benefited from this. I am encouraged by this development. MPA will inject another $65 million into the fund, bringing the total amount to $115 million. The top-up will go towards funding schemes to encourage more maritime businesses to upskill and hire Singaporeans. This will allow more Singaporeans to benefit from the opportunities available in the maritime sector. The enhanced fund will complement SkillsFuture to strengthen the Singaporean Core for Maritime Singapore. MPA will continue to co-fund overseas attachments and internships to enable individuals to gain exposure to the international market and is working with companies to develop management associate programmes to groom local talent for leadership positions. MPA is also partnering the industry to develop more structured career progression pathways. So, we will create more opportunities for Singaporeans to take up seafaring careers. In doing so, we intend to commit another $6 million over the next five years to the Tripartite Maritime Scholarship to support more students to train to become captains and chief engineers of ocean-going merchant ships. With this experience on the seas, they will then be able to better exploit the range of maritime jobs on shore when they have concluded their stint at sea. To conclude, the prospects for Maritime Singapore remain very bright. The Government will continue to ensure that our maritime sector is future-ready, so that Singapore and Singaporeans can take advantage of the many opportunities that this sector has to offer.”
“This year, we will be paying special focus to enhancing safety for small harbour and pleasure craft. MPA will be funding the installation of new enhanced transponders on these vessels to improve their navigational situational awareness and to better identify safety threats. In an emergency, these transponders can also help to locate the distressed vessel and shorten the response time for rescue operations. Installation will start in the middle of the year and be completed by December 2016. Mdm Chairman, Maritime Singapore is much more than just our port. It is also one of the top international maritime centres in the world, home to a vibrant ecosystem of maritime enterprises. As Deputy Prime Minister mentioned in his Budget speech, the Government is extending the Maritime Sector Incentive schemes by five years to 2021. In addition, we have enhanced and expanded the scope of qualifying profits eligible under the schemes. For instance, qualifying profits remitted from approved foreign branches of local shipping entities can now enjoy tax exemption. These changes will help Singapore to be even more attractive as an IMC. State-of-the-art infrastructure and a conducive business environment are necessary enablers for the growth of Maritime Singapore. But what we also need to set us apart from our competitors is a well-skilled workforce. Maritime Singapore today provides a rich variety Page: 107 of rewarding careers for Singaporeans. And indeed, Singaporeans are in high demand in the sector. We want to ensure that Singaporeans are ready to take advantage of the many exciting career opportunities in this field. The Maritime Cluster Fund for Manpower Development is a key programme co-funding maritime manpower training and development.”
“Container throughput in 2014 grew by about 4% to almost 34 million TEUs. Throughput is expected to continue to grow, in tandem with regional demand. Page: 106 Therefore, we have accelerated our port development plans. Pasir Panjang Terminal Phases 3 and 4 will be fully operational by the end of 2017, two years ahead of our original plan. This will add new handling capacity of about 15 million TEUs per annum, increasing our total capacity by some 40% to 50 million TEUs. PSA will invest some $3.5 billion in these new facilities, which will enable us to handle more of the largest container ships with lengths of some 400 metres. This expansion will provide sufficient capacity whilst development work on Tuas Port is underway. Mr Seng's emphasis on safety is timely. Indeed, Singapore has done well on this front – the number of maritime incidents has decreased from 1.7 incidents per 100,000 vessel movements in 2010 to 0.5 incidents per 100,000 movements last year. Our good safety record is, in large part, due to a strong safety culture, which has been fostered through the close tripartite relations amongst the maritime community, unions and the Maritime Port Authority of Singapore MPA). MPA's Safety@Sea campaign, which was launched last year, has reached out to more than 1,700 masters of vessels and 500 shipping companies. In addition, MPA has stepped up efforts to improve emergency responsiveness and ensure that we are well-prepared for contingencies. This included Exercise Blue Dolphin, the multi-agency exercise in 2014 which tested our readiness to respond to passenger vessel incidents in Singapore waters. And this is a priority area because of the number of passengers that we have on board such vessels.”
“CAAS already grants SAR-145 approval to such companies on a case-by-case basis. But the Member's point is well made and CAAS will review its regulations to see whether we can be more facilitative of activity that will contribute to the growth of the MRO industry in Singapore. Finally, let me address Mr Gerald Giam's query on drones and self-driving cars. As I have explained in response to similar Parliamentary Questions, we recognise that there are many possible new uses and significant commercial opportunities for such technology. However, we do need to balance the potential benefits against the risks to public safety and security. We are in the midst of reviews of the regulatory frameworks for drones and self-driving cars. For drones, we expect the review to be completed by 2016. In the context of this review, we plan to consult the industry and the public later this year. But we do not preclude the need to make amendments to the Air Navigation Act sometime this year if there is a need to do so in light of safety and security qualms. In closing, while 2014 saw a cooling of growth from the breakneck pace witnessed in the preceding few years, we remain confident of Changi Airport's long-term prospects. We will continue to work closely with our partners to reinforce our competitive position. Finally, Mdm Chairman, let me now move on to touch briefly on maritime issues. As Mr Seng Han Thong has noted, our aim is to develop Singapore as a premier global hub port and International Maritime Centre. Maritime Singapore is a key economic pillar for the country, contributing about 7% to our gross domestic product (GDP) and about 170,000 jobs and it provides connectivity that is important for our manufacturing and trading sectors. The Singapore Port continues to do well.”
“But this is not a subject on which we can afford to be complacent. We will continue working with our partners to further raise safety standards. For example, we are working with ICAO to implement improvements to the tracking of aircraft as well as the exchange of information concerning conflict zones presenting risks to civilian aircraft. As these will take time to be implemented globally, CAAS has taken proactive steps, such as mandating that from this year, all aircraft operated by Singapore carriers must be equipped with Automatic Dependent Surveillance-Broadcast (Out) (ADS-B (Out)) transmitters. This enables an aircraft's location to be broadcast more frequently, thereby increasing the tracking accuracy of its location, especially over areas beyond radar coverage. Similarly, Singapore adopts a multi-layered approach to ensuring aviation security. Various measures have been put in place, including the thorough screening of all baggage and cargo and stringent control of access to restricted areas. Mrs Lina Chiam talked about Page: 105 checked-in baggage belonging to passengers who subsequently do not board the flight. We require the airlines to offload all such baggage from the aircraft before they can take off. The security agencies and Changi Airport Group (CAG) review all security measures regularly. Singapore's aviation security regime has also been audited by ICAO and found to be robust and in compliance with all of its aviation security standards. We are committed to making air travel for Singaporeans as safe as is practical. Mr Charles Chong asked about facilitating the development of aircraft MRO operations in Singapore by being more liberal in the granting of SAR-145 certification to companies even if they do not work on Singapore-registered aircraft.”
“These, together with other innovations, will lead to a 10% improvement in their productivity. They will be piloted at T4 before being rolled out to the other terminals. Page: 104 4.45 pm To facilitate innovation and the adoption of productivity-enhancing technologies and capabilities, CAAS has an Aviation Development Fund (ADF). This fund will be topped up to $160 million. Of this amount, $140 million will be earmarked for airport productivity-enhancing projects. This is an increase from the $100 million that is set aside for airport productivity just last year. Another $20 million will be set aside for other innovative projects with significant benefits to the aviation sector. In line with the SkillsFuture initiative, the renewed ADF will also be used to attract talent to the aviation industry and to support continual learning. These initiatives will include intensified promotion of aviation careers to students, and partnerships with industry and NTUC to redesign jobs, deepen skills and enhance career progression. CAAS will release more details on the renewed ADF separately. Mdm Chairman, let me now address Mr Seng Han Thong's question on aviation safety and security. All of us will surely remember 2014 for its series of tragic aviation incidents. I would like to assure this House that Singapore takes a rigorous approach towards aviation safety and security. First, on safety, CAAS regularly conducts thorough audits and inspections of Singapore-registered aircraft as well as foreign aircraft operating in Singapore. Pilot training and aircraft maintenance in Singapore are also subjected to a comprehensive licensing regime. Indeed, ICAO has rated Singapore's safety oversight of the civil aviation system as one of the most robust globally.”
“Soil improvement works to treat the very poor soil conditions will commence shortly. The tenders for drainage works, runway extension and new taxiways are expected to be called around the middle of this year. We expect the three-runway system to be completed around the early 2020s. In the meantime, CAAS is working with its partners to implement various capacity optimisation measures to allow the existing two runways to accommodate growth until the three-runway system is ready. As Mr Cedric Foo has said, a successful air hub requires more than just infrastructure. It also needs to be supported by a liberal air services regime. We will, therefore, keep up our pursuit of air services liberalisation to allow airlines to fly more frequently and to more points from Singapore. Singapore concluded Air Services Agreements with more than 130 states and territories, including more than 60 Open Skies Agreements. We also expect that ASEAN will meet the 2015 timeline to establish intra-ASEAN open skies. Intra-ASEAN open skies will boost Changi's connectivity to the fast-growing ASEAN region, while also better positioning ASEAN to negotiate for more liberal air rights regimes with third countries. We also need to raise innovation and productivity of airport operations. Therefore, in addition to the passenger self-service initiatives that this House had previously been told about, we are also exploring transformative improvements to other aspects of airport operations. For example, Changi currently employs more than 1,300 cleaning staff. We are conducting trials on the use of robotic cleaning equipment and motorised trolleys to improve these workers' productivity and to make their jobs easier, especially for our older workers.”
“Hence, as the Deputy Prime Minister and Finance Minister had announced, a Changi Airport Development Fund will be set up with an initial capitalisation of $3 billion to support the expansion. More will be added as the Budget allows in the years to come. At the same time, I would like to assure Members that there will be robust cost control and project management over the construction of T5. And in reply to what Mr Low Thia Khiang asked for, we are not yet able to determine the detailed cost as the plans are not finalised yet. T5 is not the only project to ensure that Changi continues to be an air hub of choice. Our other capacity expansion plans are also progressing well. Construction of T4 is well underway and on track for completion in two years' time. Dr Lily Neo asked about Jewel Changi Airport, the mixed-use complex to be built in front of T1. Changi Airport Group broke ground for Jewel in December last year and works have since commenced. When completed in 2018, Jewel will increase the capacity of T1 and Page: 103 introduce new aviation-related facilities, such as early check-in facilities and a multi-modal transport lounge offering dedicated services for fly-cruise and fly-coach passengers. It will also offer exciting attractions and retail and dining options. As Dr Neo has suggested, we will continue to engage Singaporeans on the development of Jewel, by building on last year's IMAGINE project where the public's ideas were incorporated into the vision and design for Jewel. I am also pleased to update Dr Neo that the works to operationalise a three-runway system at Changi are progressing well. The contract for land preparation works was awarded in October last year. The contractor has since commenced survey, services diversion and site clearance works.”
“Our ambition is for Singapore to remain as Southeast Asia's foremost air hub and one of the major hubs in Asia and across the world. To do this, we must ensure that Changi is able to accommodate future growth. The most important project to achieve this will be the new T5, which both Mr Cedric Foo and Mr Low Thia Khiang have asked about. Based on our projections, the capacity of our existing terminals and the upcoming T4 will be fully utilised by the mid-2020s. Hence, T5 is our major project to ensure that Changi Airport can meet Singapore's future needs. It will be built in phases. We currently plan for T5 to have an initial capacity of about 50 million passengers per annum and an eventual capacity almost equivalent to that of T1, T2 and T3 combined today. In the event that growth turns out to be different from what is currently projected, we can manage the pace of construction as we did for T3 following 9/11 and SARS. At the same time, we will take the opportunity to further improve on the top-notch passenger experience and high efficiency for which Changi Airport is well-known. I had informed this House at last year's Committee of Supply debate that the Concept Plan for T5 and Changi East was being refined to take on board industry feedback. I am pleased to update that we have since finalised the Concept Plan. We are now starting to develop the Concept Plan for T5 into more detailed design plans and will subsequently be re-engaging the aviation community, as well as Singaporeans, on their suggestions for T5. T5 represents a major commitment on the Government's part to secure Singapore's economic future and our place in the world.”
“Mdm Chair, I thank Members for their interest in the development plans for Changi Airport and our aviation sector. Like them, Singaporeans are proud of Changi Airport, and rightly so. The airport is our gateway to the world. It creates a good pool of jobs for Singaporeans. It is a key driver for our economy. Its efficiency and service standards set benchmarks within Singapore and around the world. As a result, Changi Airport has grown from strength to strength. Over the last decade, it grew at an average rate of 6% a year. As Mr Foo pointed out, Changi saw slower growth in 2014. Passenger volumes grew by less than 1% to reach 54 million. While this was yet another historic high for Changi, the growth rate was significantly slower than the 5% growth in 2013 and the more than 10% growth in each of the preceding three years. Airfreight volumes also grew marginally by 0.3% to more than 1.84 million tonnes in 2014. The moderation in passenger traffic growth is likely to be a temporary one. We expect growth to pick up to between 1% and 3% this year with recovery of traffic to and from markets like China and Thailand, which saw slowdowns in 2014, and also as airlines rebuild on top of the capacity rationalisation that took place in 2014. Over the longer term, our prospects as an air hub remain good. Air traffic in the Asia Pacific is projected to double over the next two decades, driven by economic development and rising affluence. With our favourable position, extensive connectivity and Changi's renowned passenger experience, we are well-positioned to tap on this growth. Hence, we expect a long-term growth rate for passenger traffic at Changi of between 3% and 4% per Page: 102 year over the next two decades.”
“And if we implement all these three parts well, we will be able to ensure a sustainable, very high-quality public-centric transportation system that fulfils the needs of Singapore commuters. Taxi Industry Review”
“But I believe that just as have been able to do so after December 2011 and after spates of disruptions that we have encountered from time to time over the years, we will be able to do so. We will be able to regain their confidence in time to come, through redoubling the efforts of the operators, as well as LTA, to make sure that we systematically identify the root causes of these problems and devote all the resources and all the energy necessary to bring about the improvements that are expected. As we get more new trains coming in, with the completion of more new lines, there will also be additional avenues for commuters, stations that are nearer to their home, as well as a greater resilience in the network, so that if there is a disruption, there are more opportunities to bypass these disrupted areas because there will be more interchange stations and more alternative ways of getting to their destinations. We are doing this to make public transport the choice commuting mode for all Singaporeans. At 66% now, we still have some way to go to achieve our target of 75% peak-hour public transport mode share by 2030, but it is something that is definitely doable. In the instances where public transport is not adequate – and these instances should be few – we want to give commuters access to alternative transport options, without necessarily owning a car. Senior Minister of State Josephine Teo will talk more about our efforts on this front. Parliamentary Secretary Faishal will also elaborate on how we have to significantly improve the first- and last-mile experience, especially through active mobility, such as Page: 70 walking and cycling, so that, overall, that does not pose a deterrent to the use of public transport.”
“The enhanced function will be released for use at the end of this month, and I think this is something that actually gives commuters more choices because they will have a better idea in terms of the arrival of the next bus that they are waiting for, as well as how crowded it is, and the choice to make alternative plans whether to walk, take another service or change their travel plans a little if it suits them. Page: 69 This is a work-in-progress and, like all experiments, not all of them will be equally useful or perfect. But I think it is important that LTA continues to experiment now and then and, if the experiments do not work well, to either continue to improve, or actually to fail quickly and just move on. I have also requested that LTA do more to facilitate co-creation with the private sector by releasing more transport data to third-party app developers through its DataMall. This DataMall actually hosts about 80 datasets currently. Subscribers to the DataMall include the developers for mobile applications, such as SGBuses, gothere.sg and Traffic@SG, which I am sure a good number of Singaporeans are familiar with. And I hope to see even more collaborations with the release of additional datasets. Mdm Chairperson, I hope that I have managed to give Members a better appreciation of the resources that we are putting in, particularly for public transport and what more we will do to invest in the reliability and capacity issues that have come up in recent years. As I emphasised earlier, even though we have made some progress, much remains to be done. Commuters have certainly been inconvenienced through the recent spate of disruptions and it has undermined their confidence in the public transport system. We need to do a lot more in order to regain their confidence.”
“Mr Gan Thiam Poh asked about the success of the City Direct Service or CDS. Ridership has been increasing steadily since its launch. In fact, we have increased the number of trips on six of the 10 existing services to cater to the demand. This included one additional morning trip for CDS 654 in Mr Gan's neighbouring constituency for Sengkang residents in July 2014. There are plans to introduce 12 more CDSs, and I assure Ms Low, Mr Lim and Mr Gan that we will continue to monitor bus connectivity across the island on an ongoing basis in order to better serve our commuters. Finally, let me just touch very briefly on how we will use technology to enhance the public transport experience. Today, technology is already empowering commuters by giving them more information and choices over their commuting modes. I have thus encouraged LTA to continue experimenting with new ideas and initiatives on this front. As the transport agency, LTA is uniquely placed in terms of data, resources and capabilities to leverage technology to provide more accurate and timely information for commuters to better plan their journeys. For instance, commuters can soon use the enhanced "Bus Arrival" function to check the estimated time of arrival for the next bus as well as its level of crowdedness. The accuracy of arrival times has been recently improved with the installation of new equipment on board the buses and the level of crowdedness is estimated through the use of farecard data.”
“I note, too, that residents in Bukit Gombak constituency are already served by a total of 22 services which link them to existing stations and, in time to come, to future stations, as well as to amenities, such as West Mall and surrounding towns, including Woodlands, Jurong East, Boon Lay, Clementi, as well as Orchard. LTA has regularly engaged Ms Low to understand her concerns and we will improve bus services where possible, although I must add that it is not always possible to have direct connections between all parts of a constituency. Mr Lim Biow Chuan asked whether there are plans to enhance bus services for his constituency. Mr Lim's constituency is currently served by 21 bus services and all his Page: 68 residents staying along Haig Road, Meyer Road and Amber Road have access to bus stops within 400 metres of their homes, with bus services that connect them to the Circle Line and/or the East-West Line, such as Dakota, Mountbatten, Paya Lebar and Kallang MRT stations. It is not always possible to deploy public buses within these private estates due to road constraints and insufficient ridership. But even if we were to consider using mini-buses in such low demand areas like Mr Lim has suggested, we would still need to ensure there is sufficient ridership to cover the cost of operating the mini-buses, which actually is not much lower than the normal buses. Here, I am talking about operating cost, not the acquisition cost, because a large component of operating cost for buses actually comes from manpower. Whether you drive a double-decker, a single-decker or mini-bus, you still need a driver and, therefore, that large part of the operating cost does not change very much, regardless of the type of buses that we use.”
“On the Downtown Line, she is referring to the basic structural provisions that we had made for a possible future station between Hillview and Beauty World stations. Let me repeat that – it is basic structural provisions. We have not even begun the process of constructing an actual station and we will not be able to do so for a while yet as I will explain. We made these provisions for what are called box stations, as part of our advanced network planning to allow us to add a new station to an underground line in future, given URA's long-term development plans, without the need to do additional excavation when we pull the trigger. To transform these provisions into a full-fledged station and to run the station, however, are different things, and it will still incur substantial costs and can only be justified if there is sufficient ridership. As I understand it, from the numbers that she mentioned in her cut, there are only about 1,500 dwelling units within a walking distance of 600 metres from the Hume box station. I know also that URA has no plans to develop the immediate areas around the Hume box station in the short to medium term. And until they do so, we really do not have sufficient ridership to justify for that station. In the meantime, residents along Hillview and Hume roads are served by direct bus services to DTL2 at Hillview and Beauty World stations. I also hear Ms Low's appeal for more bus services, and I am glad that at least her residents have found the new City Direct Service 653 something that is convenient for them.”
“For instance, the train depots have perimeter and CCTV security, supplemented by security patrols. Because it is a large area, if an intruder still manages to slip through, their actions should be detected when operators conduct rigorous pre-operation checks on both the interior and exterior of the trains prior to their launch for service every morning. 2.30 pm Beyond the physical measures and the security patrols, the last line of defence is to make sure that the Captains who are responsible for the trains, conduct a physical check on the inside and exterior of the trains. This is a requirement that we ask them to do every morning. This is how the Train Captains discovered the graffiti in the last two incidents at Bishan Depot. If there are suspicious packages that are left inside the train, I certainly expect the Train Captains to be able to pick them up, prior to the deployment of the trains for service in the morning. Page: 67 Finally, let me quickly address some of the local concerns that Members have raised. Mr Patrick Tay spoke about the noise from the MRT that his Nee Soon residents had told him about. We have already begun Phase 1 of installing some 14 kilometres of railway noise barriers at 25 locations. I understand that one of the locations is between the Simpang Kiri Park Connector and Yishun Avenue 5. This stretch will be completed next year. We will be announcing Phase 2 of this programme later this year. Ms Low Yen Ling spoke at length about a Hume station on Downtown Line 2 (DTL2) and having more bus services for her residents in Bukit Gombak. This is something that she had brought up on a number of times and I really respect and admire her perseverance.”
“Page: 66 The safety and security of our commuters are also important and I want to assure Mr Seng Han Thong and Ms Sylvia Lim that we are committed to ensuring the security of our public transport system. Under our existing framework, the PTOs, being the domain owners and ground operators, are primarily responsible for ensuring the security of their facilities as they are best-placed to decide what those measures ought to be, with the recommendations of the Public Transport Security Committee. Beyond the Government's role that Ms Sylvia Lim had briefly highlighted, I would also like to share that the Government, through this Public Transport Security Committee, had also reviewed the security measures in the public transport system twice in 2011 and 2013. All those recommendations from the two reviews, including enhancements in physical security measures and formalisation of security standards for public transport facilities, will be implemented fully by 2017. In addition, the Government has, and continues to assist the operators in enhancing public transport security. For instance, the Government has put in place enhanced security measures, such as CCTVs. We also deploy regular Police patrols on the MRT trains and conduct regular exercises with the operators to identify areas for further improvement. I agree, however, that we can and must do better. The recent intrusions at the Bishan Depot and onto the North South Line show that determined intruders will probe for the slightest weakness in our system. They will exploit the smallest of gaps. Thus, we have added multiple layers of security, so that if one layer fails, hopefully, the next layer will prevent the intrusion or at least mitigate the consequences.”
“Mr Foo suggested shortening the time lag so that the annual fare review exercise is reflective of prevailing market conditions. The fare adjustment quantum will always have some degree of time lag as fare review exercises are always based on the previous year's full-year indices, since the full-year figures in the year of review are not available when the review is being conducted. The PTC had initiated the 2013 fare review exercise in November 2013, following the finalisation of the work by the Fare Review Mechanism Committee (FRMC). Members may recall that we suspended the fare exercise in 2012, gave the FRMC time to do its work. It completed its work in 2013 and then the PTC initiated the 2013 exercise in November that year. From there, the 2014 fare review exercise was carried out on the same annual cycle based on the same timeline. In about November last year, it initiated the latest fare exercise. As some time is needed for system adjustments, the fare changes approved by the Council can only be implemented in a number of months and, therefore, April of the following year. In April this year, we will have the 2014 adjustment. I accept that it is confusing with all these time lags. But if I may say so, from a commuter's perspective, because these are fare increases, a certain degree of inefficiency is not necessarily a bad thing. Now that we have completed that 6.6% increase, including the carry-over of the 3.4% into the 2014 fare exercises, as I said in Parliament previously, we do expect that this year's fare exercise, the 2015 fare exercise later in the year, could result in a fare reduction. I promise you that I will certainly be more efficient in carrying out this coming fare exercise.”
“2% in 2013, in part because of rising wages and the fact that any increases over the intermittent period had lagged those wage increases. This shows that public transport affordability, on average, continues to improve, because what Members see on the chart is what they spend on public transport, measured against household income. We also look at another group, the second decile, which is a group from the 11th to 20th percentile. For them, the figures have come down from 4.6% to 3.1% over the same period. That said, I am keenly aware that there are some segments of our population that may still require additional help to cope with the cost of commuting. Besides the Public Transport Vouchers, we have put in place a comprehensive system of targeted concession schemes. Page: 65 These include two new Government-funded concession schemes introduced in 2013 for lower-wage workers and for persons with disabilities. Mr Pritam Singh has suggested some special scheme or transport subsidy for full-time caregivers. This idea was considered carefully by the Fare Review Mechanism Committee back in 2013 as part of their review of concession schemes, but it was not implemented as they felt it would be too complex to identify the caregivers and, therefore, difficult to administer. We know that caregivers' needs are varied and often extend beyond public transport, so, a more broad-based approach to lighten their burden may actually be more effective. The Ministry of Health offers a number of financial assistance schemes, such as the Foreign Domestic Worker Grant and the Interim Disability Assistance Programme for the Elderly, that help defray costs on multiple fronts, including on transport.”
“For the North East Line and Circle Line, I have mentioned 42 trains earlier; 33 of them will arrive by the end of this year. They will be deployed progressively, starting from the middle of this year until the first quarter of next year. So, in about 12 months or so, we will see the addition of 33 new trains into the North East Line and Circle Line. Of course, another impactful development will be the opening of Downtown Line 2 by the first quarter of 2016. We will also initiate mid-life upgrades of the older trains as well as the replacement of the third rail system to further enhance rail reliability. On bus services, we can expect further improvements in the next 12 to 15 months. We will add another 210 buses this year to improve the frequencies of feeder services islandwide, and to introduce new services in areas, such as Choa Chu Kang, Bukit Panjang, Punggol, Yishun, Sengkang and the Jurong Lake District. In addition, 12 City Direct Services will be introduced from the second quarter of this year. Commuters and residents in the West can also look forward to the completion of Joo Koon ITH by the third quarter of this year. The first issue was on reliability; the second was on capacity; and the third and I think the most important aspect of public transport, is affordability. A key tenet of the Public Transport Council (PTC)'s responsibility is to keep fares affordable, with particular attention to be paid to lower-income commuters. PTC, thus, monitors fare affordability for a typical household in the second quintile, or between the 21st and 40th percentile of the household income distribution. The proportion of their household income that is spent on public transport has declined steadily, from 3.2% back in 2003 to 2.”
“Some of these upgrades will include new and improved facilities for our bus drivers, such as staff lounges and canteens. Bedok Integrated Transport Hub (ITH) is a good example of what we can achieve as we renew, upgrade and build new hubs. Indeed, the welfare of our bus drivers is something that is really important to us. The Public Transport Tripartite Committee that is chaired by Mrs Josephine Teo was set up precisely for stakeholders, including bus employees and union representatives, to work together on such issues. In September last year, the Committee announced a set of guidelines on Good Employment Practices in the Public Bus Industry. I would like to thank the Committee, especially the National Transport Workers' Union, for their efforts in engaging bus employees. I hope that they will continue to support this transition as we move to a new bus industry model. Let me at this point sum up the major improvements to our bus and rail services that Singaporeans can look forward to in the next 12 to 15 months. We will complete the sleeper replacement programme on the North-South Line and we will lift the temporary speed restrictions before the middle of the year. What it means is that commuters can then expect journey times similar to what they first experienced when we operated the MRT system back in the 1980s and 1990s. We also expect to complete the upgrade of the signalling system for the North-South Line by mid-2016. The operators will need a couple of months to adjust their deployment schedules for trains. But by the time this is done, commuters can expect up to six trains, Page: 64 instead of the current maximum of five trains every 10 minutes, meaning a capacity increase by about 20%.”
“Eventually, when we have moved to the Government contracting model, which is something that I will speak about next, we intend to make this a feature of the new contracts and negotiations. More fundamentally, the Government is transiting the bus industry to this contracting model that I have just talked about, to inject more competition into the industry and also to be able to respond more quickly to the needs of commuters. Mr Cedric Foo asked about the status of the first package. Eleven bids were received – four were from local bus operators, six were from overseas and one was a joint bid. We have not completed the evaluation yet. We expect to do so in the next quarter. The bid prices will be published in due course, and we will use the experience of the first bid to improve future Page: 63 exercises. I would also like to update Mr Foo that the second bus contract for services operating out of the Loyang depot will be put out for tender in the second quarter of this year. We expect to complete all evaluation before the end of the year. I expect to see similar strong interest in the Loyang package, which will comprise about 25 bus services, starting with about 400 buses. Let me assure Dr Neo that under the Government Contracting Model, we have placed strong emphasis on the tenderer's plans for local recruitment and retention and, equally so, we agree with her that customer service is pivotal to the commuter's experience. This is also why we are monitoring commuters' satisfaction levels closely through satisfaction surveys that we conduct on an annual basis. More infrastructure will be needed to support the extended bus network and fleet. Already, we are building new bus interchanges and terminals in Sengkang, Changi and Tampines, as well as expanding existing ones.”
“Together with the buses injected by the PTOs themselves and the use of private bus operators to provide additional capacity through the City Direct Services and the Peak Period Short Services, for instance, we would then have increased the bus fleet by about 35% since the start of BSEP in late 2012. By 2017 also, we will see all bus services running at shorter intervals, and the intervals specifically for feeder services will be no more than six to eight minutes during the peak period. 2.15 pm Mr Lim Biow Chuan asked how bus service standards have improved. We track the number of hotspots, which show areas with average loading that is higher than 80% in the morning peak. I have a slide to show Members the situation of what it was like in July 2012, prior to the start of the BSEP programme. In January this year, which is what the next slide will show, we have been able to significantly reduce the number of hotspots, although this is a situation that is quite dynamic, and it is something that we have to keep responding to. We use this as a way in part to identify the services across the network that require more buses to be added. But as Mr Lim also noted, the timeliness of bus arrivals is equally important. To this end, LTA introduced a two-year Bus Service Reliability Framework (BSRF) trial for 22 bus services last year, which is an incentive- cum- penalty scheme to encourage bus operators to improve the regularity of bus arrivals. I am happy to report that the BSRF trial results have been encouraging so far and LTA will provide detailed information in time. I have also asked LTA to expand the trial to include more bus services.”
“We intend to deploy the remaining seven by the end of this year, although I think it is useful for us to be able to pinpoint exactly what were the causes of the Bukit Panjang LRT incidents because a number of these were actually power trips and we want to make sure that the running of these additional trains would not be imposing a load that is beyond what the system can bear. I think it is something that we will only know much clearer when we are able to diagnose fully the causes of the LRT incidents. Residents in Sengkang and Punggol can also look forward to 16 new train-cars in 2016. We will also convert some of the train-cars to two-car operations as this will add further capacity to the system. Dr Neo and Mr Low Thia Khiang suggested having women-only cabins on the MRT during peak hours. This is a suggestion that had been raised and looked at carefully before. There are practical difficulties and challenges, such as how to, and also how strictly to enforce the rule, and also how this could sub-optimise the capacity of our trains. From the experience that we have garnered from other systems, the women-only cabins are often utilised less, meaning that more commuters will have to crowd into the remaining cabins or they will simply have to wait for the next train. Let me move on to buses because we have also expanded the capacity of our bus network. We have completed the addition of the 550 Government-funded buses under the original Bus Service Enhancement Programme (BSEP), two years ahead of the original Page: 62 schedule. We will further expand BSEP to add another 450 buses by 2017.”
“LTA and their contractors have been actively engaging the community before and during the construction. We will continue to try our best to reach out to residents early and to mitigate the inconveniences, such as through installing protective hoarding to minimise noise and dust. But we need to try and get the understanding and support of residents, so that projects can be completed in a timely manner and that all Singaporeans, including themselves, can begin Page: 61 to enjoy the benefits of the new rail lines. But new rail lines will take 10 to 12 years to construct. In the meantime, we have also been adding new trains to the system. We added 13 new trains to the North-South and East-West lines last year and I have no doubt that they have helped us improve our scores for waiting times because that was the attribute that saw one of the biggest improvements in the recent satisfaction survey. But we will not stop there because we intend to add another 57 new trains from 2016 to 2019, which is about a 40% increase of the fleet that we have today. The first of 18 new North-East Line trains and 24 Circle Line trains will be deployed by the middle of this year. In total, with all the trains that are coming in – 99 of them – entering service over the next five years, the overall train fleet will increase by almost 50% and we can expect that peak period wait times will come down by about 25%, on average, across all three rail lines. For our LRT systems, six of the 13 new train-cars for the Bukit Panjang LRT have been deployed as of end-February.”
“In the event of a disruption, like what we saw in the Bukit Panjang LRT incident, we will require SMRT to respond better, as well as to deploy more service ambassadors to better assist commuters. I would like to assure Members that we will spare no effort to find out the causes of this recent spate of breakdowns and also to take the necessary measures to stem these problems. Another important aspect of public transport is capacity, again something that Mr Foo had asked about. We are addressing this through new rail lines and by adding capacity to existing lines. But we are also trying to encourage more commuters, especially those who are able to travel outside of the peak hours. Indeed, there has been a number of initiatives, including the introduction of Off-Peak Monthly Travel Passes later in the year. By this time next year, Stage 2 of the Downtown Line (DTL2) will open and it will increase the peak capacity for travel from the west to the city by about 50%. Residents in Bukit Panjang and Bukit Timah will have a more direct and convenient route to the city, compared to today. The full Downtown Line will be completed when Stage 3 opens sometime in 2017, while the Thomson-East Coast Line, which we have begun construction, will open from 2019 onwards. We are constructing these new lines at a pace that is unprecedented in Singapore's history. By 2030, our rail network will be almost as dense as what you see in New York and London today, and we would have achieved this in less than 50 years, compared to the more than 100 years that it took both cities to do so. I know that, in doing so, there will be some inconveniences, like those that Dr Neo's residents have shared with her.”
“1 withdrawals per 100,000 train-kilometres had brought us back to the level where we were at in about 2007. But there is still some way to go. Normalised service delays lasting more than five minutes have also improved on the North-South Line and East-West Line, going down to 1.3 in 2014, compared to about 1.6 in 2012, an improvement of close to about 20%. For the LRT network, there has also been some improvement. The withdrawal rate for the Bukit Panjang LRT had come down to 4.5 per 100,000 car-kilometres, compared to about 6.1 in 2012. For the Sengkang-Punggol LRT, the order of magnitude is also better. It improved to about 0.7 per 100,000 car-kilometres from 1.5 in 2012. Delays in both LRT systems, too, have been reduced, and we certainly expect to have more improvements when we start the Page: 60 mid-life upgrade of the Bukit Panjang LRT train-cars later in the year. But while the statistics may show some improvement, I think the recent incidents are stark reminders that we still have quite some way to go. Mr Gan asked what we can do to further minimise incidents. Well, I think the operators must persevere and redouble their efforts to do better. They need to intensify their maintenance regime, undertake additional preventive and detection measures, as well as further improve their processes to enable prompt and effective response to maintenance issues. We will work with them to continue with track renewal and also to make mid-life upgrades of their trains. LTA, on its part, will augment SMRT with additional engineering expertise where required and will also step up audits of SMRT's maintenance procedures and resources.”
“Here, we have also made some progress. In 2014, close to six in 10 households live within a 10-minute walk of a train station; and about 77% of public transport journeys of less than 20 kilometres were completed within 60 minutes. These goals were only revised and announced in 2013, so, it is useful for us to look at the data for a number of years before we revise them further. Let me now address the three key issues of reliability, capacity and affordability. I will first talk about train reliability because a number of Members had spoken on this. Mr Foo, in particular, asked for an update on the implementation of the Committee of Inquiry (COI)'s recommendations. We set up Joint Teams – LTA with the operators – and we have gradually tightened the regulatory framework after the COI, and it has been what I would say is a long and difficult journey to claw our way back to a position where we can say that reliability has improved somewhat. For most of 2014, the Public Transport Operators (PTOs), through the change in their maintenance approach and also, in particular, through the hard work of their staff, had made significant inroads in improving reliability. This is a slide I had shown in previous years and this is something we had updated with the data in 2014. For the North-South Line and East-West Line, we halved the number of unscheduled train withdrawals, bringing it down to 1.1 per 100,000 train-kilometres, compared to 2.2 in 2013 and about 3.3 in 2012. I am loathe to provide a concrete target to what Mr Foo asked about, but I feel that we can certainly still do better in the coming years as this improved rate is still double what we see for the North-East Line and the Circle Line, even though the 1.”
“The latest survey results indicate that Singaporeans' overall satisfaction with public transport had increased from 88.5% to 91.3% in 2014. Satisfaction with rail improved by about four percentage points, from 88.9% to 92.8%, and this reversed a four-year decline. For buses, the satisfaction level had risen for a second consecutive year. I must add though that the survey was conducted in October last year, as it is done in October of every year, and I think it reflected the prevailing sentiments then that commuters were starting to feel the effect of the improvements and investments that we have made in our buses and trains over the last few years. And if I may point out, for MRT, if we look at the range of attributes from waiting time to reliability to comfort and so on, the attribute that had scored the highest for at least the past two years was safety and security. I will refer to those later on in my response, because of the cuts that were filed by Members on these issues. We track commuters' satisfaction with public transport closely, in part because it also helps us to understand whether my Ministry is on track to attain the long-term objective of Page: 59 making public transport the choice mode for Singaporeans. As Mr Cedric Foo has noted, we had identified three areas of focus and set ourselves ambitious targets for 2030 in the Land Transport Master Plan (LTMP) – a 70% peak-hour public transport mode share by 2020, rising to 75% by 2030. Last year, public transport mode share grew to 66%, up from 64% in 2013. Other 2030 goals that we had set ourselves in the LTMP include eight in 10 households living within a 10-minute walk from a train station; and 85% of public journeys of less than 20 kilometres completed within 60 minutes.”
“With your permission, Mdm Chair, may I ask the Clerks to distribute some handouts and also to display some slides on the screen so that Members can refer to them during my speech?”
“Mdm Chairperson, first, let me thank Members of the House for their thoughtful views, questions and feedback on public Page: 58 transport. I have no doubt that a number of them, like me, would have had to write, rewrite and yet again rewrite our cuts and speeches in recent days. But let me start off, first of all, with an assessment of the latest spate of MRT and LRT disruptions. These recent disruptions, including the most recent one at Bukit Panjang LRT due to an electrical fire, show the range of problems we continue to face and how much more we need to improve in terms of rail reliability. This comes about despite the intensive efforts that LTA and the rail operators have put in over the last few years. While I can accept the occasional breakdown, and I can even tolerate a more severe disruption if it occurs very rarely, I am most upset with the current situation in the last few weeks. The incidents have inconvenienced many commuters, disrupted their routines and schedules, and, once again, undermined confidence in the transport network and the progress that we have made. The recent spate of disruptions, coming against a trend of general improvement in rail reliability, is something that really pains me. As Dr Lily Neo pointed out, prior to this, the public perception of the public transport system seems to have improved. We track this via the Public Transport Customer Satisfaction Survey (PTCSS), which is something that I share on an annual basis at the start of every Committee of Supply (COS). This is something that Singapore Institute of Management University (UniSIM) conducts every year.”
“All foreign-registered buses need to have an ASEAN Public Service Vehicle (PSV) permit issued by our Land Transport Authority (LTA) to enter Singapore. For tour buses, there is an additional requirement that they have to be conveying an identified group of passengers who commenced their journey from an ASEAN member country (not Singapore). These tour buses are allowed to enter Singapore empty subsequently, however, to pick up the same group of passengers for the return journey back to the country of origin. For foreign-registered buses plying scheduled services, an Omnibus Licence is required on top of the ASEAN PSV permit for them to enter Singapore empty to pick up passengers at designated stopping points within Singapore. LTA has received seven cases of feedback in the last two years on Malaysia-registered vehicles picking up passengers in Singapore and has investigated accordingly; however, no transgressions were detected. If convicted, the PSV permit holder may be liable to a fine, imprisonment and/or suspension or revocation of the permit for his/her vehicle. Page: 131”
“In considering public transport fare adjustments, the Public Transport Council ensures that fares remain affordable for commuters. Financially vulnerable commuters are aided by public transport concessions while frequent commuters can cap their expenses through monthly passes. In 2011, senior citizen concessionary fares were extended to allow concessionary travel for the entire day. In 2013, the existing concession schemes for students, senior citizens and full-time National Servicemen were significantly enhanced. In addition, children below seven got to travel for free and a new Adult Monthly Travel Pass was introduced. The Government also funded two new concession schemes to benefit lower-wage workers and persons with disabilities. This year, fares will remain unchanged for more than 1.1 million commuters. These include senior citizens, persons with disabilities, lower-wage worker and commuters travelling on monthly travel passes. The Government also provides additional assistance to needy families through public transport vouchers. Two hundred thousand public transport vouchers of $20 value were made available in 2011, while 250,000 public transport vouchers of $30 value were made Page: 129 available in 2014 and this year.”
“Since the launch of free pre-peak travel in June 2013, the ratio of morning peak commuters to pre-peak commuters heading to the city has been sustained at around 2.1, compared to 2.7 prior to the trial. This is a result of about 7%-8% of commuters shifting their travel from the peak to the pre-peak period. Peak hour commuters who are unable to shift would also benefit from less crowded rides.”
“A total of 43 organisations have signed up so far to participate in the Travel Smart Network, which was launched in July last year. These include 12 organisations that participated in the pilot before the launch of the Travel Smart Network. No organisation Page: 128 has dropped out of the programme. In a survey of about 3,800 employees of the 12 pilot companies, about 12% of respondents said that they had shifted their travel out of the morning peak period of 8.30 am to 9.00 am.”
“Mdm Speaker, let me thank the Member for his suggestion which is to make all Singaporeans shareholders in the company. I am afraid that this is something that goes beyond the ambit of the Ministry of Transport, but I will raise this matter to the Page: 20 Minister for Finance and let him consider this in his own good time.”
“Mdm Speaker, I thank the Member for the suggestion. It is also one that Mr Seng Han Thong had separately raised to me earlier. As part of the 2014 Fare Review Exercise, the two public transport operators will contribute $13.5 million to the Public Transport Fund. We intend to use up to $7.5 million from this Fund to provide 250,000 Public Transport Vouchers of $30 value to needy families for this fare exercise. The Government also has plans for the remaining amount in the Public Transport Fund and we will announce the details when we are ready to do so.”
“Mdm Speaker, I am not really sure I follow the argument of Mr Low Thia Khiang. But let me try to interpret what I understand from it: that if they are profitable and productive enough, there is no need; or if they are efficient, productive and profitable enough – sorry, forget about the profitability; if they are efficient and productive enough, there is no need to increase fares. Theoretically, yes, except that they do face cost pressures as well. They employ more people, many of them Singaporeans. Their employees do expect wages to go up. You run Page: 15 Town Councils, some of you run companies and so on, and you know the cost pressures that we all come under, and they come under, too. Much as they would like to reach that state of nirvana where efficiency, effectiveness, productivity can overcome all these pressures, the truth is that 80% of their cost largely mirrors the core CPI as well as the wage increases. We know wages have been going up; we know that core CPI has been going up; we have been fortunate that the 20% component, that is, the Energy Index has gone down, using the index for 2013. In the second half, prices have come down, compared to 2012. So, I am not so sure that you can actually escape from the fundamental point that they do, like every other entity, public or private, come under the same cost pressures, the same expectations of their employees to see a reasonable increase in their wages. Driving buses, for example, is a very manpower-intensive kind of operation, together with the maintenance of the buses. Inevitably, they cannot avoid coming under the same pressures which are reflected in the formula that Mr Magnus and his team have derived.”
“I understand the point and I understand the concern that people always have over profitability of these operators – what is the reasonable amount, what is acceptable and so on. In the past, we also looked at Return On Total Assets (ROTA) but, for the recent fare formula, they have also tried to make sure that we just do not look only at ROTA but try and have a formula that mirrors more closely the operating cost of the two operators and, at the same time, make sure that the productivity improvements that they do make, part of it is given back to commuters as well. So, hopefully, we are trying to arrive at a balance where fares are affordable, in relation to household income and expenditure; fares are affordable in relation to what other cities around the world may be paying for the same level of service or a lower level of service, in fact. And fares are affordable because there are various targeted subsidy schemes that the Government may put in place in order to protect the most vulnerable groups. That is the situation that we are trying to achieve.”
“Mdm Speaker, I thank Ms Chia for that supplementary question. Indeed, as I have mentioned earlier, there is a certain amount of cross-subsidy. They do not determine the fares; neither do they determine the standards because, really, at the end of the day, they are almost running like monopolies. The last thing you want for them to do is to be able to determine standards and to determine fares. So, the standards are actually determined by the Land Transport Authority. The fares are determined by the PTC. We have debated extensively in this House about the fare formula that was derived in 2013 after Mr Richard Magnus and his team took an extended amount of time to study this matter carefully, as well as to consult widely, before coming out with the fare formula. My fundamental point is this, which is really an elaboration of what I have mentioned to Er Dr Lee Bee Wah: are we better off if the services are provided by an entity that is run effectively, that is able to keep costs down, that is able to allow us to enjoy relatively low Page: 14 fares, certainly compared to cities around the world? Is that of benefit to us? And if that is of benefit to us, rather than the converse – which we have seen in a number of cities where they run nationalised systems, not very efficiently done, the cost goes up, they have no handle on that, as well as on other aspects of transportation, ultimately, it is borne by much higher fares in those cities or through a large subsidy from government and taxpayers – if you look at those two possibilities, then, certainly, the former must be more enjoyable and acceptable for Singaporeans. That is the situation that we have today.”
“But most important of all, they will have to figure out a way to make sure that they continue to improve on reliability and the service that they offer to commuters.”
“On the formula, I think it is always useful to allow a formula to run for a number of years. We have had this formula running since 2013. I think it is useful for it to continue until 2017 and we do a review then. On the point that profitability has increased and, therefore, we should not increase fares – I take the Member's point. Thus, the converse must also be true – that when profitability has decreased, even though they are profitable, we must allow them to increase fares. So, the Member's point was that when profitability increases, take that into account and, therefore, do not allow them to increase fares. Now, I see the Member's point: that as long as they are profitable, we cannot allow them to increase fares. Hence, we come back to Page: 13 the question of what incentive is there for them to be even more efficient and more productive, which ultimately benefits the commuters? If they run a shoddy operation and the business becomes very expensive, ultimately, we all bear the costs. That always is a fundamental. The second point is this: we have mentioned that they have major financial commitments over the next few years, until 2019. I hope that point is not lost. They have commitments to buy trains and all the other projects that we had spoken about in the previous Parliamentary sessions, amounting to about $2 billion. Therefore, if you take $2 billion, what does it all mean? It is more than three times the cumulative profits over the most recent five years. More than three times of that. They will have to figure out a way to meet these commitments. They will have to figure out a way to make sure that they remain profitable.”
“Because if you say that you stifle every possibility of a private operator making some profit, improving efficiency, productivity of which there is a dividend that is paid to all commuters through that 0.5% in the fare formula, if you stifle all that, then, ultimately, if it results in an even larger increase in fares, is that of benefit to everybody? That, to me, must be the question that we always ask. That is the question that the PTC looks at very carefully: how do you find a balance between making sure that fares are affordable to commuters and yet ensuring the financial viability of the entire system? If the system ultimately is not financially sustainable, then, over time, the Government and all taxpayers will have to step in to bail it out. The important thing is to make sure it remains financially viable; make sure that our fares are affordable on two counts. One is in comparison with other cities; and two, in comparison with household income and the percentage that households are paying on public transportation. Er Dr Lee Bee Wah: Mdm Speaker, I thank the Minister for his explanation. I think the overriding factor must be whether there is a justification for an increase in the fare since the reported profit keeps going up. Anybody who invests in the company will know that those operators do not bear high risk because they are providing a basic need; everybody will have to take public transport if they do not own a car. My question is to come back to this fare review formula. Can the profitability of the PTOs be included in the fare review formula: can the change in the formula be effected earlier?”
“Mdm Speaker, let me thank Er Dr Lee Bee Wah for her passion and for championing these various areas. Indeed, there is a certain amount of cross-subsidy that is taking place. Even for SBS Transit, if you have seen the recent results for the whole of FY2014, the buses continue to make a loss. The reason the company remains profitable – and I will come to the profit figures in a while – is because of the other income that they have managed to generate as a result of rentals, commercial operations and so on. For SBS Transit, the profit for the whole year increased from about $11 million-plus to $14 million-plus. In percentage terms, very high; but in terms of absolute numbers, measured against total revenue for the year of about $1 billion, you really see that the profit margin is about 1.5%. The profit margin for SMRT for the past financial year (FY) – their FY ends only in March 2015 and it would not be appropriate for me to speculate what the final quarter's figures are – was 5%. As I had mentioned before, this was largely due to the revenue and profits that they generated from their non-fare business – commercial operations, rentals, taxis and so Page: 12 on. SMRT, you may recall, had been losing money on buses for quite a number of years, and it is only in the recent quarter that we have seen a turnaround, helped partly by measures that they have taken as well as the fortuitous situation of a reduction in fuel costs. At the end of the day, the overriding factor that is of importance must be: are our fares affordable, how do our fares compare with those of other countries and cities?”
“And can the review of the formula be brought forward, instead of waiting until 2017?”