How much profit should the bus companies make? How often should the bus companies be allowed to raise their fares, and by how much? If there are any guiding principles by which applications for bus fare increases are assessed, they are not known to the public.
The three main companies - Citybus, Kowloon Motor Bus (KMB) and China Motor Bus (CMB) - have all applied to the Government for a fare increase this year. Citybus wants an average increase of 8.7 per cent, KMB 9.2 per cent and CMB 11 per cent.
Each company has supported its application with relevant financial information which was vetted by the Transport Department and scrutinised by the Transport Advisory Committee (TAC).
Later the TAC endorsed the Government's recommendation that Citybus be allowed a fare increase of six per cent, KMB seven per cent and CMB eight per cent.
Obviously these figures are lower than what the bus companies asked for, and the Government claims they are 'reasonable' and 'acceptable to the public'.
In a letter to members of the Provisional Legislative Council urging them to support the Government, the Secretary for Transport, Nicholas Ng Wing-fui, offered several justifications for the proposed fare increases.
