Letters | It’s only fair for operators to share costs of the HK$2 fare scheme

Readers discuss how transport networks have benefited from the subsidy, and happiness in Macau

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Commuters use the JoyYou Card at Wong Tai Sin MTR station on August 25. Without the HK$2 fare scheme, many elderly people would likely reduce their use of public transport. Photo: May Tse

Published: 11:30am, 7 Jan 2025

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Despite looking at a nearly HK$100 billion deficit, Financial Secretary Paul Chan Mo-po is still reluctant to ask transport operators to share the costs of the HK$2 (26 US cents) fare scheme, worrying that the burden may be shifted to other passengers. He seems to have overlooked a crucial economic reality: the scheme itself has significantly benefited these operators through increased ridership and revenue.

Without the subsidy, many elderly residents would likely reduce their use of public transport. The scheme effectively guarantees a steady stream of passengers, with the government covering the difference between the HK$2 fare and the regular price. Given that the cost of serving additional elderly passengers is minimal for established transport networks, a substantial portion of this revenue translates directly into profit.

I propose that government economists conduct a detailed analysis to quantify the additional profits these operators have gained through the scheme. Based on these findings, it would be reasonable to request that transport operators rebate part of these extra profits. This would help sustain the scheme while ensuring a fair distribution of costs between public funds and private enterprises that have benefited from this public policy.

Simon Wang, Kowloon Tong

Macau is booming, yet people aren’t happy

It has been asserted that since 1999, people in Macau have felt the happiest they have ever been. This seems contrary to the reality on the ground in this former Portuguese colony.