Transport Minister's Circular Argument: It Goes One Full Circle

ST Oct 8, 2007
Minister explains why bus fares cannot remain unchanged

By Yeo Ghim Lay

Transport Minister Raymond Lim yesterday commented for the first time on the bus fare hike this month, urging Singaporeans not to politicise the issue.

Doing so would over time, cause the service standard to suffer, he said at a dialogue.

A resident of Thomson Division suggested that fares be reviewed every four years before the general election.

He was highlighting the latest bus fare hike of 1 to 2 cents on Oct 1, just a year after the last increase when fares of buses and trains were raised by 1 to 3 cents.

Replying, Mr Lim said if fares were frozen for four years, people tend to ask for it to be extended again.

Other countries' experiences have shown that when governments succumb to such pressure, service standards would deteriorate.

The reason: bus companies, unable to afford new buses, will have a shrinking fleet, resulting in overcrowding.

As the situation worsens, people will complain to the government, which will feel compelled to raise fares.

'But the people say: 'How can you raise the fare if the buses are so crowded, so lousy the service?'

'It goes one full circle,' said the minister.

So while, politically, the freezing of fares would be a popular move, that would not be a responsible thing to do, he added.

The resident had also asked why public transport companies like SBS and SMRT are publicly listed, resulting in them looking out for the interests of their shareholders, not commuters.
Mr Lim said experience elsewhere shows that if government were to take over, costs will still rise eventually.

Fares then have to rise. But if commuters resist, fares have to subsidised and this subsidy has to be borne by taxpayers.

So, either the user or tax- payer pays, he noted.

The minister also defended the Public Transport Council (PTC), noting that its decision to disallow train fares to rise was ignored by people.

Arguing that fare charges was best left to the independent PTC, he said it was unfair to brand it pro-public transport operators.

'They are doing a very difficult job, (it is) very easy to say these things but they're already trying to take into account the public interest to ensure that at the end of the day, you have a public transport service that is good,' he said.
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After Bargain Hen's recent display of stupidity, Transport Minister Raymond Lim gets into the poultry act by talking cock.

"Replying, Mr Lim said if fares were frozen for four years, people tend to ask for it to be extended again. "

Using his twit-like logic, if the Public Transport Council allowed fares to be raised frequently, the bus companies will ask to raise their fares every year. Oh, isn't that already happening?

"Other countries' experiences have shown that when governments succumb to such pressure, service standards would deteriorate.

The reason: bus companies, unable to afford new buses, will have a shrinking fleet, resulting in overcrowding.

As the situation worsens, people will complain to the government, which will feel compelled to raise fares.

'But the people say: 'How can you raise the fare if the buses are so crowded, so lousy the service?'

'It goes one full circle,' said the minister. "

A summary of Mr Lim's explanation goes like this.

Government succumbs to pressure -> bus companies cannot afford new buses -> poor service -> people against raising of fares and pressues government not to raise fares

Since this is a circular argument, Mr Lim says that such grounds for the refusal to raise fares are invalid.

So let's make the circle go the other way round.

Government does not succumb to pressure -> bus companies can afford new buses -> good service -> people agree to raising of fares

Since this is also a circular argument (it's an anti-clockwise circle instead of clockwise circle.), I guess Mr Lim must then say that the government must refuse to raise fares, since such an argument is also circular.

So peasants, do tell your Transport Minister how good the bus services are. They will be unable to raise fares if you do so.

Bashing ministers aside, the public transport system in Singapore must be liberalised. A monopoly without competition is guaranteed to be inefficient for it allows businesses with inefficient business practises to get away with it. And when inefficient business practises erodes the profitability of such a company, they will simply raise prices (under the pretext of unable to afford new buses), leaving consumers (poor helpless peasants) to bear the brunt of it.