SMRT fined $5.4m: Do commuters benefit?

September 23, 2015

SMRT fined a record $5.4m

I refer to the article “SMRT to be fined a record S$5.4m for July 7 MRT breakdown” (Channel NewsAsia, Sep 23).

It states that “The Land Transport Authority (LTA) intends to impose a financial penalty of S$5.4 million on transport operator SMRT for the system-wide disruption on the North-South and East-West Lines (NSEWL) on July 7, it announced on Wednesday (Sep 23).

This is the highest financial penalty imposed on an operator since two MRT service disruptions in December 2011, which affected about 221,000 commuters, for which SMRT was fined S$2 million. The fine will go to the Public Transport Fund to help needy families with their public transport expenditures”.

Operators give $13.5m to Transport Fund?

In this connection, according to the Straits Times article “$13.5 million boost for fund that helps needy commuters: PTC” (Jan 22) – “Another $13.5 million will be added to the Public Transport Fund this year to help needy commuters.

Yesterday, the Public Transport Council (PTC) said $7.5 million will be drawn from the fund to finance 250,000 public transport vouchers worth $30 each.

The money comes from public transport operators SBS Transit and SMRT, which will give $5.5 million and $8 million respectively – or 25 per cent and 30 per cent of their additional fare revenue.”

Fines mean less contribution in the future? 

What’s the point of imposing fines on the transport operators that go into the Public Transport Fund, because since the fund is funded by the operators anyway – will the fines mean that the operators may have to contribute less to the fund in the future?

Only 55% of operators’ contribution to Public Transport Fund to be used? 

Also, why only draw down about 55.5 per cent ($7.5 divided by $13.5 million) to help needy families?

It used to be 100%?

In contrast, it was 100 per cent in 2005, when the $4 million Public Transport Fund set up and funded by SMRT, SBS, Comcare Fund, the 5 CDCs, SLF and NTUC, gave out $4.6 million of vouchers, with the funding organisations pitching in with the $600,000 needed to pay for the extra vouchers.

Transport voucher enough for only 1 year’s fare increase?

The present system of giving $30 transport vouchers ($20 in the past) may be flawed because the amount may only be enough to offset about one year’s fare increase. What about the fare increases of the previous years?

The needy whose real incomes may be declining should be given transport vouchers as a matter of course to cover fare increases that have been about 2 out of every 3 years in the last 15 years or so, instead of just one year’s fare increase.

Fines should benefit commuters directly like in other countries, instead of the current – in a sense, left pocket to right pocket system that is arguably “cosmetic”, and do not benefit commuters more and directly.

Reciprocate trust with more transparency?

Since the people have given their trust and mandate – shouldn’t we reciprocate by being more transparent?

We should also spend more to help Singaporeans.

Leong Sze Hian

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.