No cap on HK$2 transport scheme trips as costs outweigh savings: Hong Kong minister

Only about 450 people exceeded 240 monthly trips out of 2.7 million beneficiaries, while system upgrades would cost an estimated HK$30 million

Hong Kong authorities will not cap the monthly number of subsidised trips that eligible elderly residents and people with disabilities can take under a revamped transport fare scheme, largely because implementation costs would exceed the savings.

Secretary for Labour and Welfare Chris Sun Yuk-han revealed the decision on Friday, as data showed that an average of only about 450 people took more than 240 trips a month under the scheme between May last year and April this year, out of about 2.7 million beneficiaries.

Of these 450 people, about 22 per cent were people with disabilities – a proportion significantly higher than their 5 per cent share of total beneficiaries. Sun said that this variance indicated a greater need for travel among some passengers with disabilities.

He added that while introducing a cap could save several hundred thousand Hong Kong dollars in public funds annually, system updates and testing would cost an estimated HK$30 million (US$3.8 million), making it unjustifiable given the small number of high-frequency users.

“Taking all factors into consideration, we have decided not to limit the number of trips,” Sun said.

The new “HK$2 flat rate or 80 per cent discount” model was implemented on April 3.