$2 fare scheme 'not sustainable'

Cheng Wong and Eunice Lam

Financial Secretary Paul Chan Mo-po has put forward potential areas for cost-cutting within education and health care and says adjustments will be made to the HK$2 fare scheme for the elderly and disabled in response to the fiscal deficit.

Chan said on radio yesterday that local universities have financial reserves that should be effectively utilized, helping give the government two to three years to consolidate its finances.

He said the HK$2 fare scheme for the elderly cannot remain unchanged indefinitely as its current model is not financially sustainable.

The government plans to seek feedback on possible modifications while addressing the misuse of the discount, Chan added.

Regarding proposals to reduce or freeze civil servant salaries, Chan highlighted the importance of considering their impact on the private sector, particularly given the low unemployment rate.

He emphasized careful management of expenditures to avoid hasty decisions that could adversely affect government services and society.

On his blog, Chan shared a positive outlook for Hong Kong, with consumer confidence gradually recovering as the Lunar New Year approached.

He said nearly 680,000 visitors arrived from January 28 to 31, representing a 6 percent increase compared to the previous year. In addition, the food and beverage sector experienced a more than 10 percent rise in sales, with families in popular tourist areas spending up to 20 percent more than usual.

On the same radio program, Lam Ching-choi, Executive Council member and chairman of the advisory committee on mental health, urged the administration to explore opportunities for retirees to rejoin the workforce while enhancing the HK$2 scheme.

He called for an investigation into how the scheme could help alleviate commuting expenses for elderly individuals wishing to return to work.

Lam also recommended streamlining the civil servant framework to minimize operating costs against the backdrop of a nearly HK$100 billion deficit.

He said that often, additional resources are introduced when issues arise, which can lead to increased complexity and reduced efficiency within the civil service system. Seniors and lawmakers have voiced concerns about the potential cancellation of the HK$2 scheme.

Many elderly people fear that such a cancellation would significantly burden their daily lives, adding that the government "is not solving the problem but creating one."

Lawmaker Andrew Lam Siu-lo acknowledged the challenges faced by authorities but said that support for vulnerable grassroots elderly individuals should not be diminished.

During a spring forum organized by the Society for Community Organization, participants urged the government to retain the HK$2 scheme, reduce medical fees for low-income seniors, relax caregiver allowances, and encourage continued employment for seniors.

A 65-year-old security guard named Hou expressed his concerns at the forum, saying: "If the government takes away our modest HK$2 scheme, I have nothing more to say."

A cleaner named Fung shared her struggles with long working hours due to her age and called for the government to relax restrictions to promote elderly employment.

Medical lawmaker David Lam Tzit-yuen said the scheme has successfully encouraged more seniors to exercise outdoors and suggested that the government provide additional support for elderly individuals in the workforce.