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| Legislators cite the budget deficit in calling for curbs in the $2 scheme for the elderly and disabled |
Legislators are calling for a rethink of the $2 fare concession granted to commuters aged 60 and above, as well as those with
disability, in light of the government's expected budget shortfall of more than $100 billion
for the current fiscal year.
The scheme, which has been in place since 2012 and expanded
in 2022 to include those between 60-65 years old, allows commuters to pay just
HK$2 on most public transportation, including cross-harbour buses and the MTR,
regardless of their destination or residency status.
Leading the campaign to modify the scheme is Legislative
Council member Chan Siu-hung, who is calling for a monthly cap of $1,000 on the
concession granted to every qualified user. Once a commuter’s expenses for the
month reached this limit, the subsidy will no longer apply.
Other proposals suggested to the government include
giving smaller discounts, or limiting the number of trips eligible under the
concession.
In a radio interview today, Chan also said that
the use of public funds should be “need-based” and not “on demand,” meaning the
concession should only be given to indigents.
But he warned that any changes to the program should
be communicated swiftly by the government to prevent public discontent or
distress.
Another Legco member who spoke on the show, Peter
Douglas Koon, proposed raising the concession fare from $2 to $4.
This is to reflect
the 30% surge in transport fares since the scheme was introduced, and in
anticipation of the projected one-third increase in the elderly population.
In a Legco question-and-answer session yesterday, Labour and Welfare Secretary Chris Sun said the government would take into account the effectiveness
of different options in containing the growth of expenditure, including the
proposed curb to the fare subsidy.
This includes reviewing the mode of operation of
the $2 scheme, with a view to maintaining its financial sustainability.
However, he emphasized that the government has no intention to cancel the
scheme, or change the existing beneficiary groups.
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Sun (wth glasses) says doing away with the $2 scheme is out of the question
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In response to Chan’s questions, the
secretary said the government spent about $4.05 billion in subsidy to the $2
scheme for 2023-2024. For the next
fiscal year, this is expected to increase to about $6.01 billion.In his questions, Chan noted that since the
eligible age was lowered to 60 years old starting Feb 27, 2022, the number of
beneficiaries has increased substantially, “thus imposing a heavy burden on
public finance.”
He also noted that beneficiaries have been “taking
long-haul routes for short journeys” which resulted in an increase in the amount
that in the government subsidy, apart from abuses committed by non-eligible
commuters.
Chan suggested a monthly limit to the concession – anywhere
from $500 to $1,500 – to be calculated based on the original fare.
He also suggested stepping up the campaign to inform
the elderly that taking long-haul routes for short journeys will create a
financial burden on the government, as the subsidy paid to the transport
operator is substantially bigger.
In response, Sun said the government has
been trying to make the beneficiaries understand all along how to make proper use
of the $2 scheme, including using the two-way section fares for short-haul
routes to lessen the subsidy.
Through the Transport Department, it has also urged
public transport operators to step up ticket and passenger identity inspection
to prevent abuses.
As a result, about 2,360 cases of suspected abuse of
the $2 scheme were detected among bus and ferry passengers from June 2023 until
end of February this year.
Two of the cases were referred to police for
follow-up, resulting in a $14,000 fine being imposed on an offender, who was
also required to pay $2,000 in underpaid fares. The other one is still being investigated.
During the same period, the MTR Corporation imposed
surcharges on around 4,260 ineligible persons for abusing the scheme.
In the five years before this campaign, only a total
of 1,419 suspected abuse cases were reported.
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