Monday, April 23, 2007

Balance profit and service

When public transport is privatised, the operators find ways to increase their profits. They decide to buy long buses (actually two buses joined together ) to save on manpower cost.

The long bus means occupies the space of two buses. They are difficult to manouver and congest the road. As they have twice the capacity, the waiting time for a bus is doubled (compared to single bus).

Is Singapore short of manpower? No! The excess manpower is used less productively, to drive taxis or to operate small retail outlets.

The outcome? Poor public transport service. Congested roads.

We need a better way to use the manpower in the economy. In this instance, the free market and the profit motive do not produce the desired outcome. The regulators have to step in, to ensure that there is a proper balance between profit and service.

The interest of the wider community has to be safeguarded.

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