Review Quantum of Rebates for Morning Pre-peak Fares
Ministry of TransportSpeakers
Summary
This question concerns MP Chua Kheng Wee Louis’s inquiry into increasing morning pre-peak fare rebates or reinstating free travel to manage peak-hour crowding and commuting costs. Acting Minister Chee Hong Tat replied that existing 50-cent pre-peak discounts cost $40 million annually and help reduce crowding. He highlighted that the Government provides over $2 billion in yearly operating subsidies and $300 million to defer the majority of fare increases. He noted that concessions for one in two Singaporeans and Public Transport Vouchers for lower-income households help maintain affordability. Finally, he argued that further pre-peak reductions would unfairly require other commuters who cannot shift work hours to pay higher fares.
Transcript
21 Mr Chua Kheng Wee Louis asked the Minister for Transport whether the Ministry will consider (i) increasing the quantum of rebates on the Morning Pre-Peak Fares and (ii) reinstating the free morning pre-peak hour travel scheme so as to reduce peak-hour crowds while enabling commuters to cope with the upcoming public transport fare increases and, if not, why not.
Mr Chee Hong Tat (for the Minister for Transport): Since December 2017, commuters who tap in at any train station before 7.45 am on weekdays, excluding Public Holidays, enjoy a discount of up to 50 cents on their train journey. The objective of this initiative, which costs about $40 million per year, and equivalent to about 2% of fare revenue collected, is to reduce crowding at peak times.
To ensure public transport remains affordable, the Government provides more than $2 billion per year to subsidise public transport operating costs, and will be providing an additional $300 million to defer the bulk of the fare increase this year. Concessionary fares of up to 70% discount are available to one in two Singaporeans, including seniors and students. On top of this, we also provide Public Transport Vouchers to lower-income households.
Lowering pre-peak fares further will have to be made up for through the fares paid by all commuters travelling later in the day, including those who cannot change their work hours and those making the return commute home. Therefore, the Member's suggestions of increasing the pre-peak discount or offering free pre-peak travel will require other commuters to pay higher fares.