Opinion | Ageing Hong Kong can’t afford ‘sky’s the limit’ transport fare subsidy for the elderly
- The flat HK$2 fare is open to abuse and costs taxpayers billions of dollars amid a budget deficit
- It’s time to raise the qualifying age and cut the benefit back, so the scheme can be truly sustainable
It began around 20 years ago as a marketing strategy by some public transport operators to allow senior citizens (those aged 65 or above) to travel for half price on Sundays and public holidays.
This was partly a goodwill gesture and partly a calculation that these were (mostly) empty seats, and that any loss of revenue – from seniors already travelling and paying the full fare – could be compensated for with revenue from induced travel, including from younger family members accompanying seniors.
Several features of the arrangement stood out – government expenditure was not involved, the fare concession was limited to public holidays and Sundays, and eligibility began at 65.
A decade ago, the government stepped decisively into the arrangement and substantially expanded its scope. Today, all seniors and those with disabilities travel for a maximum of HK$2 (25 US cents) or half the fare, whichever is lower. The difference between what the passenger pays and the set fare is paid by the government to the transport operator.
The justification for the government scheme was threefold: first, it was in recognition of the part played by older citizens in the growth and development of modern Hong Kong. Second, that many of those who continued working past the age of 65 were performing important but mostly low-paid jobs, and high transport fees might be a disincentive.
