If we were to apply this characteristic family back in retrospect over the last 15 years, we can see from the green line that public transport expenditure has not changed significantly. On the other hand, income (as shown by the red line) has been steadily increasing, except in 2003 when it took a slight dip. The blue line shows the proportion of income spent on public transport expenditure. This has improved steadily over the last 15 years.
With distance-based throughfares, commuters will pay a fare according to the distance travelled, regardless of the number of transfers made along the way. Why are we doing this? It is to provide better choices to all commuters. Currently, commuters choose direct or transfer journeys, depending on their preferences. However, their choices are distorted because of the fare system, which makes a transfer journey more expensive than a direct journey, even if both cover the same distance and the same origin and destination. Transfers cost more, because the 40-cent transfer rebate does not fully cover the extra cost of boarding the second leg of a transfer journey. Under distance-based throughfares, we will eliminate this distortion. Same distance, same fare. Commuters will then be better able to choose travel options that suit them best. But this is a big change. To make a gradual transition, and allow commuters time to adjust, we are making the change over 2 years, starting from this year.
The government understands that for needy families, even these dollar amounts can be significant. That is why the Government has worked together with the public transport operators to distribute 130,000 public transport vouchers, worth $40 each, to needy families this year. This is more than last year’s voucher distribution. Even if there are more applicants than the 130,000 vouchers, assistance is available through the CCC ComCare Fund. Hence needy families who need assistance can still continue to apply at their local Community Centres or Community Club, and they will be given help if eligible.