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I don't know what is going on here, whether the WP is just plain stupid or whether Lui Fuck You is an idiot. Am I the only one that thinks that Singapore already has a nationalised tranportation system for the last couple of decades?
Lets look at SBS Transit first. Its 100% owned by Comfortdelgro. 20.18% of Comfort's shares are owned by DBS Nominees, which is a 100% wholly owned subsidiary of DBS (which itself is majority owned by the govt.). The SIngapore labour foundation (a stat board) owns another 14.76%. DBSN services (also 100% owned by DBS) owns 10.83%. This is already 45.77% of the common shares. Not to mention that Citibank Nominees (which is a major shareholder of DBS), will throw in its 14.76% shares to vote with DBS Nominees means that in fact, the govt. owns and controls the majority of shares of SBS Transit. This is in effect a nationalised company. Any private individual or company cannot buy up all the shares in the public market and take over the company, as they should be able to do if these companies were truly public companies. The govt. will never let this happen and hence, it controls the majority of shares.
With regards to the SMRT, Temasek Holdings is already 54.37% majority shareholder. Therefore, these 2 orgs. are controlled and owned by the govt. I don't know what Lui Fuck You is trying to say when he pretends like the transport system is not nationalised. How can operators be dependent on govt. funding when they were already owned by the govt.? If he does not want operators to be dependent on govt. funding, than can SMRT kindly repay the govt. funding of $4 billion used to build the initial MRT lines and stations? This $4 billion was never paid back by SMRT and was a forgiven debt.
Lui claims the 2 companies are commercial enterprises. But If you look at the boards of these so called commercial enterprises, they are loaded with politicians and civil servants. Or PAP insiders. Hardly anyone on the board of these 2 organizations have any real commercial experience, much less commercial experience in the transport sector. On SBS Transit, Lim Jit Poh was a long time senior civil servant, Kua Hong bak is a relative of Gecko, Gan Juay Kiat (SAF scholar and one of those BG/MG/LG/COL Ret. types), david Wong (member of the PSC), etc. the list goes on.
So, if it walks like a duck, quacks like a duck, it must be a duck. Does Lui think we are so stupid as to believe that SBS and SMRT are private companies? Does the WP really can't figure out that they are not?
Transport Minister Lui Tuck Yew says that while a nationalised public transport system might seem attractive, it has serious implications.
His comments in a Facebook posting came a day after the Workers' Party reiterated calls for a nationalise public transport.
On Monday, public transport operators SBS Transit and SMRT submitted their proposals to the Public Transport Council (PTC) to seek an increase in fares -- both bus and train -- by 2.8 per cent.
Operators argued that they continue to face increasing costs despite efforts to manage costs and increase productivity.
Entering the fray of debate, the minister noted that while nationalising the public transport system might appear to be an attractive solution, it has its downsides.
He pointed out that this idea would result in commuters and taxpayers -- those who do not take public transport -- paying more, and possibly, for a poorer level of service over time.
Minister Lui explained that if public transport were to be nationalised, operators would be dependent on government funding as well as operate on a cost recovery basis. This he added, would not spur them to lower transport costs.
Instead, costs increases will be transferred to commuters who are then required to pay higher fares for the same level of service.
"Not only would people have to pay more, nationalising the operators could result in a stagnation of service quality or efficiency over time," he added.
However, he noted that the profit incentive of commercial enterprises is a more viable option as it promotes efficiency and productivity improvements.
Commenting on whether the two operators should be making substantial profit, Minister Lui said it is not unreasonable for them to gain fair returns from the investments required to sustain their operations and invest in future public transport needs.
Commuters' interests will be safeguarded
Even if the transport services are being run by commercial enterprises, Minister Lui said there are measures in place within his ministry which will ensure that commuters' interest are being safeguarded.
He highlighted that there is a "robust framework" to regulate bus and rail service levels and operating performance standards so that public transport operators (PTO) do not pursue profit at the expense of commuters.
The minister added that the Land Transport Authority (LTA) will also continue to collaborate with the PTOs to deliver improvements to the transport system.
He went on to comment on how fares are being reviewed and said that the PTC regulates fares based on an adjustment formula which takes into account factors such as the Consumer Price Index (CPI) and average national wage increases.
The formula protects commuters by capping fare increases, which means PTOs are not able to simply pass their cost increases to the public.
In an attempt to allay fears of a fare hike, Minister Lui said that as in previous years, the PTC will have to examine the operators proposals, taking into concern the interests of commuters and sustainability of the transport system.
"In fact, there have been some years when the PTC approved fare increases that have been less than what the PTOs proposed but we should let the PTC deliberate on this properly and make its decision," he said.
PTC to review fare adjustment formula
Meanwhile, the PTC will review the fare adjustment formula after 2012 when the validity of the current formula ends.
Chairman of the Government Parliamentary Committee (GPC) for Transport Cedric Foo had called for the review days after the transport operators submitted their proposals for a maximum fare adjustment.
The Ministry of Transport said the review is meant to take into concern the interest of commuters and long-term viability of the public transport operators.
Since 2005, the fare adjustment formula has been based on the fare review mechanism as recommended by the GPC-led Fare Review Mechanism Committee, it added. The ministry also said that the fare formula is not meant to be static.
Lets look at SBS Transit first. Its 100% owned by Comfortdelgro. 20.18% of Comfort's shares are owned by DBS Nominees, which is a 100% wholly owned subsidiary of DBS (which itself is majority owned by the govt.). The SIngapore labour foundation (a stat board) owns another 14.76%. DBSN services (also 100% owned by DBS) owns 10.83%. This is already 45.77% of the common shares. Not to mention that Citibank Nominees (which is a major shareholder of DBS), will throw in its 14.76% shares to vote with DBS Nominees means that in fact, the govt. owns and controls the majority of shares of SBS Transit. This is in effect a nationalised company. Any private individual or company cannot buy up all the shares in the public market and take over the company, as they should be able to do if these companies were truly public companies. The govt. will never let this happen and hence, it controls the majority of shares.
With regards to the SMRT, Temasek Holdings is already 54.37% majority shareholder. Therefore, these 2 orgs. are controlled and owned by the govt. I don't know what Lui Fuck You is trying to say when he pretends like the transport system is not nationalised. How can operators be dependent on govt. funding when they were already owned by the govt.? If he does not want operators to be dependent on govt. funding, than can SMRT kindly repay the govt. funding of $4 billion used to build the initial MRT lines and stations? This $4 billion was never paid back by SMRT and was a forgiven debt.
Lui claims the 2 companies are commercial enterprises. But If you look at the boards of these so called commercial enterprises, they are loaded with politicians and civil servants. Or PAP insiders. Hardly anyone on the board of these 2 organizations have any real commercial experience, much less commercial experience in the transport sector. On SBS Transit, Lim Jit Poh was a long time senior civil servant, Kua Hong bak is a relative of Gecko, Gan Juay Kiat (SAF scholar and one of those BG/MG/LG/COL Ret. types), david Wong (member of the PSC), etc. the list goes on.
So, if it walks like a duck, quacks like a duck, it must be a duck. Does Lui think we are so stupid as to believe that SBS and SMRT are private companies? Does the WP really can't figure out that they are not?
Transport Minister Lui Tuck Yew says that while a nationalised public transport system might seem attractive, it has serious implications.
His comments in a Facebook posting came a day after the Workers' Party reiterated calls for a nationalise public transport.
On Monday, public transport operators SBS Transit and SMRT submitted their proposals to the Public Transport Council (PTC) to seek an increase in fares -- both bus and train -- by 2.8 per cent.
Operators argued that they continue to face increasing costs despite efforts to manage costs and increase productivity.
Entering the fray of debate, the minister noted that while nationalising the public transport system might appear to be an attractive solution, it has its downsides.
He pointed out that this idea would result in commuters and taxpayers -- those who do not take public transport -- paying more, and possibly, for a poorer level of service over time.
Minister Lui explained that if public transport were to be nationalised, operators would be dependent on government funding as well as operate on a cost recovery basis. This he added, would not spur them to lower transport costs.
Instead, costs increases will be transferred to commuters who are then required to pay higher fares for the same level of service.
"Not only would people have to pay more, nationalising the operators could result in a stagnation of service quality or efficiency over time," he added.
However, he noted that the profit incentive of commercial enterprises is a more viable option as it promotes efficiency and productivity improvements.
Commenting on whether the two operators should be making substantial profit, Minister Lui said it is not unreasonable for them to gain fair returns from the investments required to sustain their operations and invest in future public transport needs.
Commuters' interests will be safeguarded
Even if the transport services are being run by commercial enterprises, Minister Lui said there are measures in place within his ministry which will ensure that commuters' interest are being safeguarded.
He highlighted that there is a "robust framework" to regulate bus and rail service levels and operating performance standards so that public transport operators (PTO) do not pursue profit at the expense of commuters.
The minister added that the Land Transport Authority (LTA) will also continue to collaborate with the PTOs to deliver improvements to the transport system.
He went on to comment on how fares are being reviewed and said that the PTC regulates fares based on an adjustment formula which takes into account factors such as the Consumer Price Index (CPI) and average national wage increases.
The formula protects commuters by capping fare increases, which means PTOs are not able to simply pass their cost increases to the public.
In an attempt to allay fears of a fare hike, Minister Lui said that as in previous years, the PTC will have to examine the operators proposals, taking into concern the interests of commuters and sustainability of the transport system.
"In fact, there have been some years when the PTC approved fare increases that have been less than what the PTOs proposed but we should let the PTC deliberate on this properly and make its decision," he said.
PTC to review fare adjustment formula
Meanwhile, the PTC will review the fare adjustment formula after 2012 when the validity of the current formula ends.
Chairman of the Government Parliamentary Committee (GPC) for Transport Cedric Foo had called for the review days after the transport operators submitted their proposals for a maximum fare adjustment.
The Ministry of Transport said the review is meant to take into concern the interest of commuters and long-term viability of the public transport operators.
Since 2005, the fare adjustment formula has been based on the fare review mechanism as recommended by the GPC-led Fare Review Mechanism Committee, it added. The ministry also said that the fare formula is not meant to be static.
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