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Letters | Why Hong Kong bus fare hikes put city on road to nowhere
- Bus companies are backed by big investors with the capacity to bear any loss or risk of operating a business
- The needy have no such safety net, especially with no budget sweeteners in sight
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Last week, officials revealed that Hong Kong’s unemployment rate had jumped to 7.2 per cent, the highest since 2004, right after the Sars (severe acute respiratory syndrome) epidemic. Economists expected this after the government stopped offering entrepreneurs help.
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What was a surprise, however, was that bus fare rises were approved by the Executive Council on the same day. The raise is going to be as much as 12 per cent, despite revenues being earned by the bus companies.
It is well known that bus companies received huge subsidies under the Employment Support Scheme last year. The authorities have every right to regulate bus fares but they should also consider social responsibility and the stark reality on the ground.
Ordinary people have suffered and continue to suffer since the outbreak of the Covid-19 pandemic. The government has extended and enhanced the public transport fare subsidy scheme, but any real benefit is questionable when fares are allowed to climb.
The government has emphasised that the bus companies are operating under extremely critical conditions, and the fare raises are inevitable if the necessary public transport is to be maintained. This explanation is not convincing. These bus companies are backed by massive investors who have deep capital reserves and the capability to bear any loss or risk of operating a business.
On the other hand, the government has left out “sweeteners” from its latest budget, important measures that helped the poor and vulnerable in the last budget, such as a one-month rent waiver for public rental housing. Even the extra month’s social welfare payment was reduced to just half.
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