Bus service revamp: More accountability needed

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http://www.straitstimes.com/premium/forum-letters/story/bus-service-revamp-more-accountability-needed-20140529

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Under the contracting model, bus operators can concentrate on delivering good service without having to worry about heavy investments or their returns ("Big revamp of bus services from 2016"; last Thursday).

The new system is expected to result in improvements in bus service, to be achieved through more government spending on infrastructure and vehicles as well as operation enhancement by operators.

To identify and measure the contributions of operators and the Government towards the expected improvements, both parties will need to compile data to show their accountability.

Under the existing system, bus companies get payback for their investments by increasing fares. In the new model, commuters may also have to bear part of the extra outlay by the Government, but it has yet to disclose how fare adjustments will be linked to the outlay.

As more public money will be used, the Government has to show more accountability by ensuring that the money spent will bring about the desired outcomes, and by making commuters pay part of the extra expenditure so that fare subsidies will not become a bottomless abyss.

It is important for the Government to disclose the costs of public bus services that are not reflected in existing fare structures - the subsidy per commuter or per kilometre of journey.

The data would provide the basis for calculating the marginal cost of future service improvement proposals, so that we can assess their viability more easily.

For instance, in requiring at least half of all buses to arrive within 10 minutes, how much would it cost each commuter?

If the requirement is expanded to cover 60 or 70 per cent of buses, what would be the additional cost? Would the marginal gain in service quality be justifiable in comparison to the marginal cost?

Under the new model, the Government would be the revenue collector and initiator for fare increases. It would not be a neutral party any more in fare hike deliberations, and proposals for fare increases would be subject to greater public scrutiny and resistance.

This is another reason why a more robust accountability mechanism is needed in the Government's transport budgeting and spending.

Ng Ya Ken