KMB and Citybus applied for a fare increase, some members advocated setting an annual fare adjustment mechanism linked to the inflation rate | TVB News

KMB and Citybus have requested fare increases. KMB seeks a 6.5% rise, while Citybus aims for a 9.5% increase. The last fare hike occurred in June 2023, with increases between 3.9% and 7%. KMB cited changes in operating conditions and costs as reasons for its request. Citybus noted rising expenses, including fuel and wages, as motivating factors for its application.

Opinions on the fare increase vary. Mr. Tang suggested a smaller rise of 2-3%. He expressed concern for Hong Kong residents, who are currently living modestly. Ms. Mok felt the proposed increase was excessive, impacting daily travel. Mr. Dai found a monthly rise of 20-30 yuan acceptable. Some members of the Legislative Council criticized the fare increase as unreasonable, noting stable or decreasing international oil prices over the past year. MP Zhang Xinyu argued that normal salary increases for employees should be manageable and are part of business costs.

There is a call for a government-established annual fare adjustment process tied to inflation rates. James Tien, a member from the Northwest New Territories, questioned why bus companies lag behind in fare adjustments compared to the MTR.

Interview with Transport Specialist: Fare Hikes for KMB and Citybus

NewsDirectory3.com

: Today, we ​sit down with ⁢Dr. Alice Leung, a transport‍ economics ⁢specialist, to discuss the​ recent fare increase requests ⁣from KMB and Citybus, and the⁢ implications for Hong ⁢Kong residents and public transport.

Q1: Dr. Leung, KMB is seeking a fare increase of 6.5%, while Citybus aims for a 9.5% ‍rise. What do you think are the ⁢primary factors driving ⁤these proposed increases?

Dr. Leung: The primary driving forces behind these​ fare increases are changes‌ in operating conditions ‌and rising operational costs. KMB and Citybus have mentioned factors like fuel prices and wage⁣ increases as​ key contributors. However,⁣ it’s also ⁢crucial to consider the economic context in which these companies operate—inflation, rising maintenance costs, and the financial fallout from the pandemic, which has⁢ affected ⁢many sectors, including transport.

Q2: The last fare hike was ‍in June 2023, with increases between 3.9% ⁢and 7%. Given that backdrop, how do you assess the current requests from both companies?

Dr. Leung: ‌The last ‍hike was relatively modest, but the current proposals seem steep, especially at a ⁢time when many residents are struggling financially. Public sentiments, as​ seen in opinions from⁢ local residents and Legislative Council members, suggest a preference ⁣for smaller increases. A noticeable disconnect may be emerging between transport companies and⁤ the community regarding what is considered acceptable, especially in light of stable or even decreasing ⁤international oil prices.

Q3: Some experts and residents argue for a standardized​ fare adjustment process linked to inflation rates. How feasible is this suggestion?

Dr. ⁢Leung: Establishing ⁢an annual fare adjustment ⁢tied to inflation could create a more ⁢predictable and fair⁣ system for both ​operators and commuters. It would mitigate the volatility we see in fare pricing based on fluctuating operational costs. The challenge lies in ⁢ensuring ‍that⁤ the model ‌is transparent and reflects actual costs ‌while balancing the financial constraints on​ residents. Additionally, local governments need to be willing to monitor and enforce this system effectively.

Q4: There⁤ are indications of ⁤some subsidies‍ for ⁣franchised buses related to toll exemptions. ⁣How does this ​affect the operational financials of‌ KMB and Citybus?

Dr. Leung: Yes, since February 2019, the exemption​ from certain⁣ toll fees has certainly ‌provided franchised bus companies with significant savings—over $450⁣ million reported by⁣ KMB alone. These funds are meant to be used wisely to support operations and potentially offset fare increases. However, ‍the public needs clarity on how those savings are⁢ being allocated. Are these savings ⁤being passed on to passengers in the form of⁢ maintained or reduced fares?

Q5:‍ given‌ the mixed responses from the community‌ and lawmakers, what are your expectations​ for the fare increase proposals?

Dr. ⁣Leung: I expect robust debates in the Legislative ⁣Council regarding these fare increase proposals. With strong community opposition and calls for a rational ‍fare adjustment process, there might be a push for either a reduced fare hike or ‌the ⁣implementation of a more structured fare adjustment mechanism. Ultimately, it ⁤hinges ‌on a ​broader‍ discussion about public transport affordability versus​ operational sustainability.

NewsDirectory3.com: Thank you, Dr.‍ Leung, for your insights on these important issues affecting public transport in Hong Kong.⁤ We appreciate your expertise as ‌residents navigate these ⁣changes.

Conclusion

: The proposed fare increases from KMB and Citybus underline ongoing⁢ tensions between‍ operational costs and affordability​ in public transport. As lawmakers ⁢deliberate, the community continues to voice its concerns over ⁤the potential impact on daily commutes and overall living costs. Stay informed with NewsDirectory3.com as we continue to follow this developing story.

Since February 2019, franchised buses are exempt from certain tolls when using government tunnels. Savings from this exemption must be deposited into the “Franchised Bus Toll Exemption Fund.” KMB reportedly has around $450 million in this fund. Fare increase proposals must be reviewed by the Legislative Council’s Transport Committee, submitted to the Transport Advisory Committee, and finally approved by the Executive Council.