Debated in Parliament on 9 Jul 2013.
Mr Teo Siong Seng asked the Minister for Transport whether the upcoming tender for the nine City Direct bus services will be extended only to competent private bus operators, excluding related companies of public transport operators, to better utilise available resources in the private sector in contributing to the Bus Service Enhancement Programme.
Mdm Speaker, as Mr Teo has correctly pointed out, the move to invite private bus operators to run City Direct bus services is to tap on their existing resources to improve bus service levels. These operators may have existing buses and drivers available in between their other assignments, such as ferrying school children or workers, and it is our aim to contract them for the required bus services.
All private bus operators can participate in the tender for the nine City Direct bus services that LTA rolled out last month, as they could for the earlier Jurong West City Direct tender that closed in March 2013.
If a company meets the tender requirements and can offer commuters good service at a competitive price, there is no reason why it should be barred from taking part. These include companies like ComfortDelGro Bus Pte Ltd and Bus-Plus Services Pte Ltd which operate separately from the public transport operators even if they are related. They have different management structures and are run by different personnel. Like other private bus operators, they have their own fleet of buses providing contracted bus services for school children and workers, as well as shuttle and premium bus services licensed by the Public Transport Council.
First of all, I congratulate the Ministry for awarding this contract after I brought it up in the Budget debate in 2012. What I am concerned is this. As the Minister of State said, ComfortDelGro, Bus-Plus and the other company are run separately from their parent company but, inevitably, they belong to the same company, same parent, which is ComfortDelGro, and SBS is the other public transport operator. So, to the real private operator, it seems to be unfair competition – they can never compete with them.
Sorry, Madam, what is the Member's question?
Page: 43
My question is that this company, ComfortDelGro, was actually awarded the Jurong West City Direct services contract, but in the public eye it seems to be part of the public transport operator's parent, with ample resources and all that. Even though this company is run separately, it is not really a private operator. So, to the genuine private operators, it is unfair competition.
Mdm Speaker, I thank the Member for raising this point. I think his question is how do we ensure that the competition is fair. I would like to assure him that when the LTA evaluated the bids that had been obtained for the City Direct services, they evaluated the operators on criteria such as the ability to fulfil the service commitment that is required of them, and their financial standing has to be sound. And I think, most importantly, it is whether we are able to really deliver the improvement to bus service levels. That was the whole intention behind this exercise. So, I would like to assure him, based on the question that he is asking, that the competition will be conducted – the contest is fair.
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