Motoring @ AsiaOne

Car owners to pay for public transport?

While free public transport is welcome, most well aware that something has to give. In this case, taxing everyone more.
Lediati Tan, Tan Su Vien and Sing Keng Loon

Fri, Dec 26, 2008
The New Paper

COMPARED with other countries, public transport here might be efficient and relatively cheap. But many want it to be even cheaper, and some want it free.

At the same time, Singaporeans know there is no such thing as a free lunch. All giveaways must eventually be paid for by someone.

Hence, they would say no to free rides if it means costs must be borne through a higher rate of taxation.

The New Paper asked 100 people on the streets whether they would rather pay 8.5 per cent goods and services tax (GST) and receive free public transport, or keep paying 7 per cent GST and continue to pay for public transport.

Of those surveyed, two-thirds preferred making no changes.

About a third opted for a higher GST rate in exchange for free public transport on buses and trains.

Transport Minister Raymond Lim had told MacPherson residents on Sunday that free public transport would come at a cost to taxpayers.

The cost of $1.2 billion a year to operate the buses and trains is equivalent to a 1.5 percentage point increase in GST.

He said: "So, now it is 7 per cent. Do you want the GST to go up to 8.5 per cent to run a completely free bus and train system?"

In many ways, the question divided people - car owners vs commuters, big spenders vs small spenders.

Mr Choo Chin Hua, 33, an architect, said: "I think it is not very fair if all tax payers pay for a certain group of people. It's in a sense subsidising people who take public transport."

Those who eat out often and shop regularly also did not think that an 8.5 per cent GST would benefit them.

Service engineer Pearlyn Chan, 27, a commuter, said: "I'd rather pay for what I use than pay every time I spend. Free public transport sounds attractive, but it is not worth it."

Mr Lee Tee Guan, a 45-year-old businessman who drives, said: "For me, the smaller the GST rate, the better.

"Paying for transport is a controllable cost. You can go out less and rely less on transport. But everyone needs to buy basic necessities and everyone will have to pay GST.

"In the short term, it looks attractive, but in the long run, it does not serve its purpose."

He suggested maintaining the GST and providing free feeder bus services to encourage people to use public transport (as in certain cities abroad) and to ease economic hardship.

Sceptical

Several respondents also expressed scepticism over the sustainability of free public transport over the long-term. Would rising costs lead to their removal down the road?

Some, like retiree Eddie Tan, 60, still don't understand the link between fuel price changes and fares.

The minister had explained that there is no direct correlation between the two. If there were, public transport fares would have shot up 40 per cent when oil prices went up by that much earlier this year.

But in the last round of train and bus fare adjustments in September, the overall net increase approved was only 0.7 per cent.

Mr Lim also said the Government will try to moderate public transport costs next year, and the Public Transport Council will continue to take economic conditions into account in its annual assessment of bus and train fares.

There were also those who were worried that Singapore's public transport system would be overburdened.

Free services might be inefficiently used as all, including visitors, take full advantage. This can lead to a call for more trains and buses which will cost money and will add to congestion.

"If public transport is free, it will definitely be very packed and much worse than now, so I'd rather not have it," said Miss Goh, a 24 year old civil servant.

- Additional reporting by Tan Su Vien and Sing Keng Loon, newsroom interns

 

This article was first published in The New Paper on Dec 23, 2008.

 
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