Govt exercised 'gatekeeper' role in bus fare increases: Transport Advisory Committee

The Transport Advisory Committee (TAC) said it acknowledges the importance of timely fare increases at suitable rates which is essential for franchised bus operators to sustain their financial health, and commended the government's role in prudently overseeing fare increase requests to minimize the impact on citizens.

The remarks come after the government approved fare increase applications from three franchised bus operators on Tuesday.

Stephen Cheung Yan-Leung, chairman of TAC, said he understands that the public may view the fare increases as excessive. However, he emphasized the hikes are crucial for bus companies to provide safe and efficient services and retain their workforce by improving pay and benefits.

He added that the number of nighttime passengers still falls short compared to before the Covid pandemic, resulting in operational problems for the bus operators.

"TAC notices that the government has exercised its gatekeeper role," Cheung said. "reducing the rates of increase of the two major franchises by a certain extent." He said the government had struck a balance between minimizing the impact on people's livelihood and maintaining the reasonable financial capability of bus operators for continuous investments. 

In response to the approval of fare adjustment applications, City Bus said it is only the fourth approved application for the company in the past 15 years. It said the adjustment translates to an average fare increase of 60 HK cents per journey.

City Bus said it will continuously drive down operating costs and introduce a new customer loyalty program next year to increase value. 

Kowloon Motor Bus (KMB) said the average fare increase is about 30 HK cents per journey and will adopt various means to control the cost to reduce the pressure on fare increases.