The Transport Ministry should not be so quick to discount the idea of giving specific assistance to needy families to cope with any increase in bus fares following the new seat-belt rule for minibuses. The ministry has implied that existing help schemes like Growth Dividends, GST credits and Workfare Income Supplement are substantial enough to help low-income families cope with such unexpected cost pressures.

However, the world has changed much since these help schemes were introduced. Surely, the Government did not formulate these benefits on the basis that oil prices would hit US$127 (S$174) a barrel, inflation would reach a 26-year high of 6.7 per cent, and food prices would spike at such an unprecedented rate.

The severity of the current economic crisis has even prompted the National Wages Council to recommend a one-off 'inflation' bonus to help workers deal with rising costs.

A $250 annual GST credit can probably offset only a fraction of what it was originally slated to do because the inflation on the ground is a lot higher than the official rate.

In addition, oil at US$150 a barrel may not be a far-fetched prediction anymore.

How far can a needy family stretch or juggle these benefits to meet unexpected cost pressures?

I am sure the Transport Ministry, with its vast resources, can come up with a win-win arrangement to ensure school bus operators do not pass on the cost of retrofitting seat belts to needy families.

Png Eng Huat