The year of plenty...... increases

Can I say I'm really surprised? Can any of us say that? Justification - oil, labour, etc. prices have gone up. Isn't that the same reasons they gave every year that they want to increase the price? Compare this to - "We need to increase the pay of ____ because there have been a wage freeze for xx years", "we need this amount to attract the brightest" (no prizes for guessing who are the ones that said that).

Notice one thing, that whenever there is an increase in something (GST, salary, fares, etc.), the gahmen is always there to justify it with the "justifications" above. Those are the root of the arguments and everything else is based on it.

The only exception from this is wage increase for us peons. Whenever the argument turns to us, the reason why our pay is low is because of market forces, not skilled workforce c.p. "we need to increase the ___ salaries because they 'deserve' it" (wait, where is the market force argument?), "we need it to attract good people" (good in whose eyes? and can't we say we need to attract good people to the workforce too? hmmm...)

The online citizen has a great article about the fare hikes and it seems that for the past 6 (2000 - 2006) years, fares have increased 5 times, with a very big increase in the net profit of the various companies.

I'm not holding my breath for the outcome?

Add this to the list of increases this year


Taken from Today 01 August 2007

TICKET TO HIKE, PLEASE
----------------------
PTC urged to review fare increase proposals critically

Leong Wee Keat
weekeat@mediacorp.com.sg

Come October, a bus or train trip could cost 1 to 3 cents more on average. Both public transport operators have applied to the Public Transport Council (PTC) for a fare increase.

While no details were given of the proposals submitted yesterday, SBS Transit and SMRT must keep the hikes capped at 1.8 per cent of current fares, as dictated by the PTC's formula.

Both operators cite growing costs as the reason for asking for a fare hike (see box) - though SMRT said the maximum allowed adjustment would only partially mitigate increases in energy costs.

At the same time, the operators are proposing that children, student and concession fares remain unchanged. SMRT added, it would not hike cash fares for adult, child and senior citizens on its buses, and may extend senior citizens' travel concessions during weekday evening peak hours.

Still, the proposed fare increases were criticised by commuters Today spoke to. Auditor Lim Wen Yu said: "Besides service reliability, you need low fares to attract people to switch to public transport."

Public relations consultant Lionnel Lim wondered why fare hikes were being mooted when both operators have been posting profits. "Even a 1-cent increase would hurt the pockets of the lower income," he said.

SBS Transit said it would consider schemes to help this group offset the hike, while SMRT will extend help through the Public Transport Fund.

In the first quarter of this year, SBS Transit posted operating profits of $16.4 million and SMRT Group's bus and rail businesses recorded operating profits of $32.4 million.

While the company remains profitable, SBS Transit said: "A fare adjustment is necessary to ensure that it continues to earn sufficient money to be able to invest in its business, so as to improve its services to serve commuters better."

Mr Cedric Foo, chairman of the Government Parliamentary Committee for transport, urged the PTC to look at the proposed adjustments "critically" - especially at both operators' returns on capital employed and productivity.

Mr Foo told Today: "It is clear that fuel and manpower costs have gone up. But have they gone up to such an extent to dilute the return on capital, as to warrant an increase at this point?"

"If they are found to be affecting returns to a great extent, then the operators would have reasonable cause (to apply for a proposed fare hike)."

Results of the PTC's deliberations may be out next month.