Lawmakers urge caution on investment following tram fare hike proposal

Lawmakers discussed the tram fare hike application and supported the raise but questioned whether the raise is enough to achieve a financial balance and urged slowing down investments based on their financial situation.

This came after the Legislative Council's Panel on Transport discussed the tram company's fare increase proposal, which includes raising those for adults to HK$3.30 from HK$3 and those for children aged three to 11 and seniors to HK$1.60 from HK$1.50.

The price for monthly passes will stay the same at HK$260.

The tram company reported a post-tax profit of approximately HK$11.2 million last year, nearly a 1.5-fold increase from the previous year, while operational costs also rose by about 10 percent to approximately HK$307 million. 

Looking ahead, the company has outlined plans to invest HK$68.2 million over the next two years in various improvement projects, including tram refurbishments and the development of a real-time tram arrival information app.

Some lawmakers support the fare increase, considering the modest hike to be manageable for residents; however, others question whether the slight increase is sufficient to achieve a financial balance. 

Democratic Alliance for the Betterment and Progress of Hong Kong lawmaker Chan Hok-fung noted that the company's future investment plans exceeded last year's profits and suggested slowing down these investments based on the financial situation.