“The offer of a flat rate of HK$2 per ride for using public transport means that the government needs to dig deep into coffers for paying back the difference to the city’s transport operators,” he said.

“But transport fares may increase every year to reflect the inflation. That was why last year I already suggested that the government adjust this flat rate every five years.”

Tien also advised the government to consider introducing certain restrictions to rein in the excessive use of the subsidy scheme by those in the 60 to 64 age bracket.

Delays expected for expansion of public transport subsidies for older Hongkongers

“For example, the government could set a daily ride quota for these junior elders. They would need to pay full fares for those trips that are not covered under the daily ceiling,” he said.

“To avoid putting a strain on the city’s traffic, the government could consider suspending the scheme for this group of elders during morning peak hours.”

However, Secretary for Labour and Welfare Law Chi-kwong recently told the Legislative Council that while usage during peak hours would be assessed, restrictions would not be put in place as the travel patterns of the elderly were different from those of younger commuters.

Law had also previously said the new personalised Octopus cards would help cut down on abuse of the scheme, warning the government could lose more than HK$100 million a year if such misuse by ineligible users continued.

In 2018, some 3.6 million Octopus cards for those 65 and older were issued, despite Hong Kong having only 1.27 million people in that age range at the time.

A spokeswoman for franchised bus operator KMB said that under the scheme, staff could ask to see the IDs of those suspected of abusing the scheme. “If we find that the users are not qualified for the scheme, we will demand that they pay the actual fares,” she said.

A Citybus spokeswoman said its uniformed staff would carry out inspections every month to confirm the eligibility of passengers riding under the HK$2 scheme, adding on-board reminders of the checks were being broadcast regularly.

“In our daily operations, bus drivers who are sceptical of a passenger’s eligibility will ask the passenger to present his/her proof of identity and Octopus for identification,” she said.

Users will need personalised Octopus card for HK$2 fare scheme

Passengers found to be ineligible would be asked to pay the difference, with staff making a record of their Octopus card number and the details of the trip.

“If any passenger refuses to present proof of identity or top up the difference of the required fare, the company may report to police subject to the actual circumstances,” she said.

Meanwhile, a government-commissioned review of transport concession fares published on Tuesday projected that spending on the scheme would surge about sevenfold between 2018 and 2031, from HK$1.2 billion to HK$8.6 billion.

That figure, which also takes into account the expansion of the scheme to include new modes of transport, will see the percentage of the city’s social welfare budget devoted to the discount grow from 1.6 per cent to 5.3 per cent over the same period.

Quentin Cheng Hin-kei, spokesman for the commuter concern group Public Transport Research Team, agreed that the government should consider restrictions or different subsidy models to bring costs down.

“The financial impact of this scheme would be staggering due to the ageing population. A flat rate of HK$2 per ride might not be the fairest way for using the public purse, as some people might abuse the scheme by taking more rides than necessary,” he said.

Cheng maintained the scheme had already prompted some bus operators to cut shorter, cheaper routes to encourage elderly riders to take brief rides on longer, pricier ones, thereby increasing the amount they were owed for reimbursement by the government.

Cheng said the government could also consider other subsidy models, such as discounts rather than the flat rate scheme, to cut down on costs.

Independent lawmaker Cheng Chung-tai, meanwhile, maintained he had received complaints of mainland tourists improperly buying the senior Octopus cards.

“To prevent the abuse of the scheme, I think the government should improve the existing senior citizen card scheme under the Social Welfare Department, instead of relying on Octopus for issuing the personalised cards,” he said.

He also urged the government to “clarify” the intentions of the scheme, warning that if there was not an explicit elderly welfare component, other groups – such as students – could soon be knocking down the government’s door demanding the same subsidy.