Hong Kong transport minister rejects government subsidies as ‘unfeasible’ despite MTR urging help over 2.7pc fare rise
Anthony Cheung says early review of the fare mechanism was requested to effectively respond to rising public concerns about the hikes
Transport minister Anthony Cheung Bing-leung has rejected calls for the government to subsidise public transport fares with billions in dividend payouts it received from MTR Corporation every year, calling it “unfeasible”.
The secretary for transport and housing gave his blunt answer on Wednesday as MTR Corp chairman Frederick Ma Si-hang joined in the chorus urging the government to provide such subsidies with the annual dividend it received from MTR Corp as its major shareholder.
“All the dividend the government received as a result of its investment in other institutions will become part of the public purse,” Cheung told reporters after attending a public management conference.
Hong Kong rail fares set to rise again
“As to whether the government should use public money to subsidise all public transport, the government thinks this is unfeasible,” he added.
Cheung said the government needed to prioritise different social needs with regard to allocating public money. “Will this be a reasonable way of using our resources and public money?” he asked.
Ma earlier made the plea to ease the burden felt by the working class through government subsidies as MTR Corp grappled with a government request for an early review of its controversial fare adjustment mechanism a year ahead of schedule.
The city’s sole railway operator recently announced an upcoming fare rise of 2.7 per cent – an increase for the seventh straight year – despite its profits of nearly HK$13 billion last year.
Pressure had been mounting for it to review the mechanism, widely criticised as unfair and safeguarding the listed company’s profits rather than the interests of the community.
Ma, however, said the MTR Corp would hold a board meeting to decide how to respond to the government’s request, explaining the company needed to balance the interests of different stakeholders including investors.
Cheung said an early review of the mechanism was requested to effectively respond to rising public concerns about the fare hikes.
“There are many views in society questioning why MTR Corp is going ahead with a fare rise despite its abundant profits,” he said, adding that setting out the fare formula did not mean it was unchangeable.
At present there are several public transport subsidies, including a fare concession scheme for the elderly and the disabled as well as a work incentive transport subsidy scheme.
