SMRT’s ‘long overdue’ financing plan fixes ‘policy mistake’: Workers’ Party
People aboard an SMRT train. (Photo: Reuters)
SMRT’s new rail financing framework is a “step in the right direction” and corrects a “major policy mistake”, said the Workers’ Party (WP).
The government’s privatisation of the MRT network in 2000 created a tension between “the private company’s impulse to maximise shareholder value from a quasi-monopolistic position, and the rightful goal of operating a public transport system that best serves the public”, said a statement on the WP website released on Thursday (20 July).
This “policy misstep” has contributed to the MRT’s many problems – from overcrowding to frequent breakdowns – over the past decade, it said, adding that the latest move is “long overdue but welcome”.
The opposition party also voiced its concern over the buyout of SMRT by Temasek Holdings, saying that it may not result in any nationalisation benefits – such as government control over the MRT network’s management. In addition, it may see SMRT’s operations and financials become “less transparent”.
In its 2105 General Election manifesto, the WP said it called for all rail operating assets to be placed under a new government body, the National Transport Council, so as to separate its ownership and regulatory functions.
The WP also called for “a shortening of the SMRT licence period from 15 years to 10 years to enhance contestability” and clarity on whether the North East Line and Sengkang-Punggol LRT – both under SBS Transit – will be adopted under new framework.
