A local think tank suggested on Tuesday that the government subsidize regular long-distance commuters since the majority of daily public transit passengers are unhappy about what they call exorbitant fares.

The Bauhinia Foundation Research Centre, an institution that studies policies and proposes measures to the government, calculated that the average expenditure for regular long distance travelers, such as those traveling from the North District to Hong Kong Island, was HK$740 a month.

Researchers surveyed 1,007 people in June, and found that the highest transport fares can reach HK$1,100 traveling from Tuen Mun to Central.

About 73 percent of respondents considered public transport fares, excluding those of taxis, to be too high.

The number of residents in Tuen Mun, Yuen Long, North District, Tai Po and the outlying islands is 1.78 million, roughly a quarter of Hong Kong's total population.

On that basis, the center put forward a proposal that the government subsidize anyone who spends more than HK$700 a month on any public transit using the Octopus card.

The proposal suggested the amount of the subsidy be capped at HK$300 per capita.

The cost of such a program was estimated at HK$1.1-1.3 billion of taxpayers' money, the center noted.

"It is worth considering to make long-distance travel more affordable in the form of government subsidies ... people will become more willing to move to the outer areas," said Anthony Wu Ting-yuk, chairman of the think tank.

The proposal came as the Labour and Welfare Bureau prepared to launch the Work Incentives Transport Subsidy Scheme on Oct 3.

The scheme will provide HK$600 monthly subsidies to low-income workers.

The bureau estimated 430,000 people will benefit from the subsidy.

Questions were raised whether the think tank's proposal will overlap the work incentives subsidy.

Skeptics were also concerned that in the end, taxpayers' money will go to the pockets of transit operators, while overpriced fares - which are susceptible to inflation - will be swept under the carpet.

Lawmaker Nelson Wong Shing-chi voiced his fear to China Daily for the increased administrative costs brought about by the proposal.

"It is the operator who should bear the onus for the overpriced long distance transport fares, not the government. Strategies to instigate competition between different transport modalities should be introduced, and that should be the way to lower long distance travel fees," Wong said.

andrea@chinadailyhk.com

China Daily

(HK Edition 09/28/2011 page1)