Financial assistance powers proposed for LTA

New amendments to the LTA Act seek to authorize the transport body to hand out loans, grants and guarantees to bus operators.

$1.1 billion will also be put into a special Bus Services Enhancement Fund (BSEF), which will bankroll such financial assistance, among other operating expenditures made under the Bus Services Enhancement Programme, the minister said in an address to parliament.

"A new Section 7(1)(fd) will be added to the LTA Act to confer powers on LTA to provide such financial assistance under the Bus Services Enhancement Programme (BSEP), and for any future programmes to improve public bus services," he said.

"A new Section 13(1)(l) is also added to the LTA Act to provide that such financial assistance can be provided by LTA through its existing revenue accounts," he said further.

Minister Lui Tuck Yew said the amendments to the LTA Act are needed to empower the LTA to implement massive transport upgrade programs such as the BSEP. "Specifically, the amendments provide for LTA to carry out operational planning for bus services to meet the needs and expectations of the public, including coordinating the routes and scheduling of bus services provided by the operators," he said.

"We have also built in legislative flexibility for the BSEF to collect grants or related revenues, and fund expenditures, under any other future programmes that LTA may enter into with bus operators to improve public bus services," he said further.

Such flexibility is needed should the LTA decide to overhaul the BSEP in the future. "Depending on the outcome of the review and the effectiveness of the BSEP in delivering the expected bus service improvements, we will not preclude that the BSEP in its current form may need to be adjusted, supplemented or even replaced. As such, it is only prudent to build in legislative flexibility so that we can respond in a timely manner to any necessary changes," the minister said.