Wednesday, July 26, 2006
Transport Hikes: Where are you, CASE?
July 26, 2006An Open Letter to Consumer Association of Singapore (CASE)
I am disappointed on that CASE
had not made a response to SMRT
plan to raise fares
across all the public transport systems.
SMRT had cited "large and sustained increase" in the price of diesel over the past two years as the reason and SMRT president and chief executive officer Saw Phaik Hwa said: "There is no reason why we should not apply for a fare adjustment this year."
Just over a year ago in May 2005, Case had made a stand opposing the transport hikes
. CASE then argued that the public transport hikes were not justified on the grounds of a record net profit of S$126.6 million by the SMRT in the FY2005.
The circumstances had not changed one year later. SMRT had declared a net profit of S$103.6 million in FY2006 ending on 31 March 2006. This is still a very healthy result, considering SMRT net profits in the FY2003 and FY2004.
|SMRT Net profit (S$m)||72.1||89.5||126.6||103.6|
In the statement made by President and CEO of SMRT Corporation, Saw Phaik Hwa,
Taking into account the current operating environment, we have performed well and therefore, recommend higher dividends for our shareholders this year. From the growth in retail and advertising, our strategy in the non-fare sectors has certainly paid off. We will continue to intensify our efforts to grow ridership, expand retail space, create more innovative advertising platforms in our public transport system, pursue overseas opportunities to raise the profit contribution from non-fare sectors, and build greater value for our shareholders."
SMRT profit margin has been stable and their outlook optimistic, thus the increase of public transport fares cannot be justified as well. It must be taken into account that SMRT is a public transport company. Commercial profit should not be place way above public interest.
On the other hand, SMRT further announced that single trips fares are unlikely to be adjusted, so as to ensure that Singapore remains "competitive and affordable" to foreign travelers. This is very difficult to comprehend for many Singaporeans. Why are Singaporeans the first to bear the blunt of the increase in price of diesel , instead of foreign travelers?
I urge CASE to further investigate the proposed fares hikes and make a stand for the general public of Singapore.
I had already sent it to CASE through email@example.com .Not too sure if it's the best address to do so.
, public transport
This blog is not intended to be authorative or clever in any way. It was based on rambling of a half crazed creature, so treat it as such and let it be!
I was asked to keep my dangerous thoughts and unbalanced views all in one safe place , and so I did. Objectivity, Accuracy, Responsiblity and any High Standards are certainly not part of this blog's features.
However, I must stress that I do not strive to mislead people, confuse people, and much less undermine our national strategy.