Hong Kong ferry fee increases slammed after HK$190m subsidy

The government came under fire today for approving ferry fee increases – after operators were granted a HK$190 million subsidy last year – and admitted it could not rule out more raises in the future.

However, Yau Shing-mu, the undersecretary for transport and housing, told the Legislative Council transport panel meeting that any application for fee rises during the three-year term of their renewed licence would be tightly scrutinised.

“There is no guarantee that ferry companies would definitely not apply for fee rises, because the oil prices are hard to predict,” said Yau. “But if such special occasions arise, the government will be the gatekeeper.”

In March, the Transport Department approved plans by New World First Ferry Services and Hong Kong and Kowloon Ferry to increase the fare of their six ferry lines by about 5 per cent and 6 per cent due to rising oil prices and salary increases. The increase on Central-Mui Wo line took effect in April and the remaining lines will have the fees raised from July.

The approval came after a HK$190 million subsidy to the six routes during the three-year licence period from this year to 2017 passed the Legco’s Finance Committee in July last year.

“I have never seen such outlandish things before,” said panel member Kwok Ka-ki. “It’s horrifying that you’ve used taxpayers’ money and ended up being slapped back [by ferry companies].”