Editorial | Public expects rises in Hong Kong bus fares to be fair
The added burden on Hong Kong society must be taken into account as operators seek increases of between 6.5 and 9.5 per cent
With the slow pace of economic recovery still weighing heavily on society, adjustments in public utility charges may yet be another burden for the public if they are not carefully taken into consideration. Officials should always ensure increases are reasonable and justified. Passengers are set to dig deeper into their pockets after three local bus companies submitted proposed fare rises for government approval. KMB and New Lantao are each seeking a 6.5 per cent rise, while Citybus is asking for nearly 9.5 per cent more on most of its routes.
While increases approved by the Executive Council are traditionally lower than those sought, the public is likely to still find such rises unacceptable. New Lantao Bus made a profit of HK$2.9 million after tax last year, compared with a loss of HK$8.8 million in 2022. Citybus incurred a post-tax loss of more than HK$57 million, after logging a deficit of HK$39 million previously. New Lantao raised its fares by 7 per cent and Citybus by 4.9 per cent on average last year.
KMB recorded a profit after tax of HK$20.2 million last year, compared with a loss of HK$41.2 million in 2022. It raised fares by 3.9 per cent on average, short of the 9.5 per cent it had requested.
This is not the first time bus operators have applied for increases above inflation. But like it or not, the return to normality following the prolonged pandemic means residents should expect to face higher charges on different fronts. However, the public still relies on the government to ensure adjustments are kept at affordable levels. This is especially true in light of the sluggish pace of recovery in some sectors of society.
The worse-than-expected year-on-year 1.8 per cent increase in gross domestic product in the third quarter of the year has raised questions as to whether Hong Kong can achieve an annual growth of 2.5 per cent as previously forecast by the government. Meanwhile, the unemployment rate has crept up to 3.1 per cent.
Economic indicators underline hardships across different areas of society and there is genuine concern that increases approved by the authorities may still outstrip inflation and add to the burden of many. Vigorous gatekeeping is essential.
