Threats to Singapore Taxis
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Any profit from $1.1b bus package will go back to government
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. -
550 extra buses to ply on the road . For the next 5 years .
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PAP never do money losing business .
They will go all out to recoup those investments at the expense of taxi drivers .
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Coincidence ?
Rental for CDG taxis all up , min $120 for new Sonata and near $180 for Chrysler ?
Whacked $0.20 per kg on CNG taxis ?
Diesel Special taxes taken off the shelf ?
Evil plots .
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Armoured ourself my friends !
For a long war for the next 5 years .
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Finally i found the match after so many years .
All this while i say MRT and Buses never a threat to us .
This $1.1b move is a clever one for me .
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Next 5 years , prepare to see more cost on ERP . More gantries .
Now diesel is tax free , expect diesel to be taxable .
Expect more love letters in your letterbox . Summons .
Expect more cameras to snap you at junctions .
Expect more TP to nap you at expressways . And overhead bridge .
PAP government will find other alternatives to recoup this investments .
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Yes SIR ! We are ready for WAR !
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One strange thing i can never understand ...
SMRT and ComfortDelgro has been earning millions of dollars and billion of $$$ on turnovers , and their shareholders has been laughing all the way to the bank every financial year , and yet they need government to finance the 550 buses ?
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i can only figure out one thing ....
SMRT and CDelgro wanted another round of fare hike .
Last election so many hikes until PAP got 60% , they surely scare lah knn this time .
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After so much analysis and talk.
Same thing LPPL.
you cant do no shit.
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After the CDG limo rentals have increased substantially , next will come the normal blue ones , then the rest will follow.
Then the Wishes & the crowns will be taken off the road , so whats left? manual i30 starts at 101.50. manual hor!
then everything goes up .
After poolman's wish gets killed , lan lan gotta find 100 plus dollar cab to drive. Then Then start to fark here and there again.
sounds familiar ? :D
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so conclusion is
Its a lan lan world out there bros!
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THROW THROW THROW~~~~~
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Originally posted by komade:
THROW THROW THROW~~~~~
yo contribute a bit leh besides throw and ani kong ho tia meh.
wah lao muz i be the only 'farker' here? hahaha
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Originally posted by Bo Call Liao:
yo contribute a bit leh besides throw and ani kong ho tia meh.
wah lao muz i be the only 'farker' here? hahaha
me?? peace bro~~~ make love not war~~~~~
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Originally posted by komade:
me?? peace bro~~~ make love not war~~~~~
wah lan hippy sia!
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Originally posted by Bo Call Liao:
yo contribute a bit leh besides throw and ani kong ho tia meh.
wah lao muz i be the only 'farker' here? hahaha
I had wanted to say this long time.
But you being the principal here I must wait for you to 'fark' komade.
nothing but THROW lah or ani kong ho.......
even JDI bro also buay ta han liao hor....
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Originally posted by Mercabs:
I had wanted to say this long time.
But you being the principal here I must wait for you to 'fark' komade.
nothing but THROW lah or ani kong ho.......
even JDI bro also buay ta han liao hor....
I think you hv to be fair to Bro Komade here, the principal already said "lan lan world out there" as the conclusion, what do you expect him to say.??Since there is no solution, throwing key can be another good option. Get out of the labyrinth of Taxi driving circles.
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Originally posted by Mercabs:
I had wanted to say this long time.
But you being the principal here I must wait for you to 'fark' komade.
nothing but THROW lah or ani kong ho.......
even JDI bro also buay ta han liao hor....
ya lo bro. knn didi ani kong ho tia and throw throw throw. wah lan
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i think expected more jam with extra 550 buses.
knn , not sure i blind or what, today from geylang lor 3 towards geylang bahru, saw a new erp grantry
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TS...nowadays never see your crystal ball
spoil liao ....izzit
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Originally posted by decent02:
TS...nowadays never see your crystal ball
spoil liao ....izzit
I foreseen 550 buses can curb alot of commuting problems .This not crystal enough ?
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The govt foreseen a reduction in private car population, therefore, they have to provide enuf transportation to ferry more people, especially those given up driving, a family of 4 x few thousands can be a big figure. You raise COE and yet no bus to take, what are you trying to do, sure get kick out by next election.
For taxis, no problem, it will also increase to cater for the people, especially those who give up driving and the younger ones who cannot afford to buy cars nowsday, afterall, taxis is still a very private kind of stuff that most people preferred.
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I sarpot gahmen invest $$$ to bring in torist. I no sarpot gahmen to invest $$$ to buy more buses. I sarpot gahmen to invest $$$, so I and you pay lower taxi renta rate but this one gahmen tia bey tio.