by Joy Fang

ANOTHER school-bus fare hike has parents up in arms.

This time, some parents from Red Swastika School in Bedok North Avenue 3 are unhappy with their school-bus operator, Nier Transport Services, for raising its fares again.

In January this year, Nier increased its monthly fare for small 20-seater buses from $68 to $73. Its buses operate in the eastern part of Singapore.

The company is planning to raise its fare again to $78 next January. Fares for 45-seater buses have also been raised from $40 to $45.

Mr Neo Tiam Beng, director of Nier, explained that small fare hikes are necessary due to rising operational costs.

"When fuel prices were high in July, servicing costs also increased. We absorbed it then.

But servicing costs are still high now, even though fuel prices have dropped."

He said that fares for small buses aremore expensive as they cater to private housing estates and carry fewer children. Big buses have difficulty navigating the narrow roads.

He said: "Some houses are located deep within their estates, so it takes a longer time and a greater (travelling) distance to pick up one child."

This comes in the wake of a similar fare-hike furore in July: The Singapore School Transport Association (SSTA), which represents more than 900 school-bus operators, had proposed to charge parents $10 to $15 more monthly to cover rising diesel prices.

The Competition Commission of Singapore rejected the proposal, saying it went against free competition.

Some parents have voiced their frustration against the latest move by Nier.

Mr Chong Ching Hoong, 42, a senior manager and a parent of a 10-year-old son studying at Red Swastika, wrote to citizen- journalism website Stomp to complain about it.

"They increased (the fare) by such a huge amount without any prior notice, and within such a short period. I think it is unacceptable," he told my paper.

He said that he was told of the fare hike only last month when he wanted to sign up his daughter, who will be in Primary 1 next year, for the bus-ferry service.

When contacted, a spokesman from Red Swastika said: "We have been given (an) assurance by the bus operators that the increase will not be more than 15 per cent."

Mr Wong Ann Lin, chairman of SSTA, said that the association will not regulate members' bus fares due to the Competition Act. "We will leave it to the free market," he said.

He added that local school-bus fares are "very competitive, compared with American schools, which charge about $100".

Still, he advised consumers to be aware of the plight that bus operators are in.

"It is a fact that operational costs are higher. Insurance has increased by 100 per cent, and cost of spare parts has also risen," he said.

joyfang@sph.com.sg

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