Comfort Delgro

[ForeverAlone]

"Under today’s fare review framework, when the PTC does not grant
the full fare adjustment quantum or rejects it entirely, the remaining
fare adjustment quantum that is not granted is forfeited perpetually.
By forfeiting the entire amount or part of it, the PTOs would not be
compensated for their cost increases, as fare increases would be lower
than cost increases. As a result, the financial viability of the public
transport industry would deteriorate and the industry would eventually
become unsustainable. The Committee feels that the longer term
interests of commuters should also be safeguarded and assured as well,
through ensuring a financially viable public transport industry"


"Therefore,on balance
, the Committee is of the view that the PTOs
should be fully compensated for cost increases over the long term,
given that productivity extraction is already incorporated in the fare
formula."