• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

Any profit from $1.1b bus package will go back to government, says DPM Tharman

Alamaking

Alfrescian (Inf)
Asset
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.


---------------------------------------------------------------------------------

I dun understand this..... how the profit going back to the government? Gov want to solve our problem but still earn our money?
 
Last edited:

po2wq

Alfrescian (Inf)
Asset
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
...
ok, alrite! ...

mor bonus 4 directors n ceo ...
 
Z

Zombie

Guest
.... 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.


this reminds me of the promise "i'll give it back to you" :biggrin: :biggrin: :biggrin:

 

Glaringly

Alfrescian (InfP) [Comp]
Generous Asset
Public service like transportation should not be privatised, otherwise you ends up with this screw up logic. On the one hand, government wants its safe, affordable, convinent and runs efficiently and the other, private firm are more interested in stretching their dollar to maximise profits.

So, this is a case of government wanted to ensure buses are constantly renew, commuters are not pack like sardine and remote area are well covered and not neglected. The problem, they just can't force it on the private operators and therefore help them with tax payer dollar? :rolleyes:
 

winners

Alfrescian
Loyal
This botak is talking cock. At the end of the day, how is the government to justify how much profit is being derived from the S$1.1b package? There are too many kangaroos in our judicial system and civil service. Anyway, I've already given up hope on the PAPies.

Furthermore, didn't that bastard Raymond Lim once said that bus and MRT travel will be free if the GST can be increased to 15%? I would strongly propose to have it and let's see if the PAPies will dare to effect what their dogs have once said.
 
Last edited:

halsey02

Alfrescian (Inf)
Asset
This botak is talking cock. At the end of the day, how is the government to justify how much profit is being derived from the S$1.1b package? There are too many kangaroos in our judicial system and civil service. Anyway, I've already given up hope on the PAPies.

Furthermore, didn't that bastard Raymond Lim once said that bus and MRT travel will be free if the GST can be increased to 15%? I would strongly propose to have it and let's see if the PAPies will dare to effect what their dogs have once said.

Easy, as a sunday money( morning )....it's easy...eh eh eh!...does Thumb are sick have shares in the major transport companies in tSINgapore?, not too diffifult to answer right!, Pass the Cost (PTC) will be passing the costs as usual to the hapless commuters, wether it is 01ct, stretch the kilometers, or whatever creative ways, to make the commuters to pay more. They collect GST on what your payment..and voila!, its easy, easy as as sunday money..eh eh eh eh...ha ha ha ha:biggrin:
 
Last edited:

streetsmart73

Alfrescian (InfP)
Generous Asset
This botak is talking cock. At the end of the day, how is the government to justify how much profit is being derived from the S$1.1b package? There are too many kangaroos in our judicial system and civil service. Anyway, I've already given up hope on the PAPies.

Furthermore, didn't that bastard Raymond Lim once said that bus and MRT travel will be free if the GST can be increased to 15%? I would strongly propose to have it and let's see if the PAPies will dare to effect what their dogs have once said.



hi there


1. remember: all sheep blah to the same tune & listen to the same grand master.
2. money, money, money!
3. nothing is suffice.
 

BuiKia

Alfrescian (InfP)
Generous Asset
So meaning, they using tax payer's money to susidy foreigners who are taking buses here too?
 

SimplyGab

Alfrescian
Loyal
Distasteful. Singapore is unlike other countries where distance is an issue, therefore fares should always be relatively cheap.
Reap all profits but share with none sounds undemocratic, no?
 

mollusk

Alfrescian (InfP)
Generous Asset
PTOs must be smiling.only need to make sure they are not making money.And viola..tharman n frens will give them 1.1b
 

halsey02

Alfrescian (Inf)
Asset
PTOs must be smiling.only need to make sure they are not making money.And viola..tharman n frens will give them 1.1b

BAlDy in today's shit paper says...if no, money given to the bus companies, fare will increase. Shall we archive that statement somewhere & let us see....
 

batman1

Alfrescian
Loyal
The botak conman said the $1.1 billion package to transport operators is to help commuters ??? In fact it is a subsidy to the transport operators.Who are the major shareholders of the bus operators ?Now he is teaching us how to do creative accounting ?
Similarly,in the same warped logic,the PAP said increasing GST is to help consumers ??? and increasing foreigners is to help jobless singaporeans ???
Something fishy in this hybrid arrangement.Why the Govt need to bail out an unprofitable company ?Why not setup another bus company with the money $1.1 billion ?

Wake up Singaporeans !!!The core of the PAP Govt was rotten and contaminated the parts around it.
 

cheekenpie

Alfrescian
Loyal
go back to the root, who plan to import loads of an tiong and ah neh den never boost public transport in the first place??
 

rusty

Alfrescian (Inf)
Asset
This secret brokering Mama is so intelligent.
Why not an outright interest free loan to bus operator?
Less troublesome no need to scrutinize...no need to check accounts.
Accounts can be massaged.
 

sense

Alfrescian
Loyal
... 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...

The above does not make sense. Smell of something fraudulent in the making...
 

rusty

Alfrescian (Inf)
Asset
Strange why didn't WP push for nationalising of public transport which they suggested during GE 2011?

No other time better than this since the operator cannot fund itself to upgrade.
 
Top