Editorial | Fare subsidy move should be fair to all
- Lowering the age threshold to 60 and above for cheap rides on buses and trains will benefit many who are still working and financially independent, leaving taxpayers to pick up yet another big bill
The government-subsidised HK$2 concessionary transport fare for elderly and disabled people was generally hailed as a positive welfare initiative when it was rolled out in 2012. But when Chief Executive Carrie Lam Cheng Yuet-ngor unexpectedly pledged last year to lower the eligibility from those aged 65 and above to 60, questions were asked over how it could be justified and its long-term cost.
A year-long review paving the way for an extension of the scheme by early next year does little to ease concerns. The government has yet to make a convincing case to lower the threshold. While the concession, which will not be means tested, is welcomed by the 600,000 more people who stand to benefit, the tendency to put back retirement suggests many may still be working or financially independent.
Over the years, billions of dollars have gone to profit-making transport operators, raising questions over the use of taxpayers’ money.
The scheme has benefited many of the elderly and disabled who may otherwise have led a less active social life because of high transport costs. But it has also resulted in irregularities, such as an unusual surge in the use of the appropriate Octopus cards as well as the government having to pay long-haul fares for passengers taking short bus rides.
The proposal to tie future subsidies with the mandatory use of Octopus cards featuring users’ identification details is a necessary step to guard against abuse, but it nonetheless comes as a compromise on privacy. Officials also concede that the adjustments will cost more and take another year to prepare.