Transport subsidy could be replaced by more equitable scheme

Recently, different people, including Executive Council convenor Regina Ip Lau Suk-yee and former transport minister Anthony Cheung Bing-leung, have called for a review of the public transport fare concession scheme, under which elderly people and eligible people with disabilities can travel on certain modes of public transport for HK$2. This is rational and reasonable.

This is not only about the increasing costs and doubts over the sustainability of the scheme given our ageing population. More importantly, it is about whether the government has a rationale for and clear conception of its policies.

On the Transport Department’s website, the purpose of the HK$2 scheme is stated as “to enable elderly people and eligible persons with disabilities to travel on designated public transport modes and services at a concessionary fare of $2 per trip”. This describes the scheme; it is not an explanation of what the scheme wants to achieve.

What is the rationale behind the scheme? While such a scheme does encourage retirees and the elderly to remain active, why was the eligible age lowered to 60? Is it a welfare programme? If so, shouldn’t the criteria be assets and income instead of age? However, we already have other welfare schemes, such as the Comprehensive Social Security Assistance (CSSA) programme.

Is the HK$2 scheme a gesture of gratuity to the elderly? If so, we already have the Old Age Living Allowance, usually called “fruit money”. Those aged 60 are only young old, many of whom have just retired or are even still working.

If the government believes the current welfare programmes do not provide sufficient support to those who are aged 60, they should review and extend the current programmes or come up with new programmes that target those in need, instead of putting in place a scheme not requiring income and asset assessment. The government should focus its efforts and resources on those genuinely in need. There should be a comprehensive review of the CSSA to ensure it is adequate and up to date.

For those earning less than HK$7,100 a month, the government has pledged to contribute 5 per cent of their income to the Mandatory Provident Fund on their behalf, to ensure that they will have better retirement protection. But it could do more. The government should also consider providing an income supplement to low-paid workers to ensure a reasonable standard of living.

Susan Chan, secretary general, Business and Professionals Federation of Hong Kong