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The Government Has No Power

by Heng-Cheong Leong, MyAppleMenu

I think there is one point that a lot of bloggers failed to recognize in the discussion (more like rants to me, more often than not) about public transport fares: the government simply does not have the power to force transport companies to lower their fares outside of the annual reviews.

The relationship between the government and the transport companies is based on a contract: in exchange to providing a minimum level of service as stipulated by the government at a fare capped by a formula, the government gave monopoly power to the public transport companies to earn 'reasonable' profits. No where in the contract — at least, publicly — gave government the power to force public transport companies to lower fares outside of the annual review and outside of the formula.

Do you really want a government that changes the rules in the middle of a game? Do you really want a government that goes back on its word, after signing a contract? (Aren't you reminded of a certain government that unilaterally declared an MOU null and void after signing the said MOU?)

Perhaps the government should negotiate for a contract that is more 'favorable' to its citizens for the next annual review. Perhaps haiving for-profit companies provide public transport is a wrong move. But I certainly don't want a government that ignores contracts.

Moreover, after all the rantings by all the bloggers out there, I fail to see a single blogger taking the public transport companies to task in lowering the fares. The power to lower fares lies in the public transport companies, not in the government. At least until the next review in October this year.