Government approves 4.9% fare hike for Kowloon Motor Bus

It will take effect on March 17.

According to a report, the Executive Council has approved a 4.9% fare increase for Kowloon Motor Bus, from March 17.

Secretary for Transport & Housing Prof Anthony Cheung announced the decision today, saying a host of factors were considered in the move, such as operating costs and revenue, public acceptability and affordability, service quality, and the outcome of a formula for a supportable fare adjustment rate under the Fare Adjustment Arrangement.

“We tried to strike a balance. The decision was not easy. We needed to ensure the company could operate on a financially and economically sustainable basis. On the other hand, we had to pay attention to the affordability of the passengers.

“The approved increase rate of 4.9% is far lower than the 8.5% put forth by KMB. It is also lower than the inflation rate of 6.31%, as well as the change in Median Monthly Household Income of 7.14% since KMB’s last fare increase.”

KMB will likely run a deficit in 2012 after settling its accounts, he said.

“Even with the increase of 4.9%, the overall financial situation of KMB will not be completely improved immediately. In addition to staff costs, the main factors that affect operating costs include the fluctuation in fuel prices and cost efficiency of bus routes.”

He said, at present, some routes overlap or are seriously under-utilised, adding it has affected services' operating efficiency and created unnecessary congestion and pollution.

“The Government is determined to improve air quality and enhance the efficiency of road resources; therefore, we will vigorously implement bus route rationalisation by an area approach on the basis that bus services play a supplementary role in Hong Kong’s public transport system.”

Prof Cheung said the Government will liaise with District Councils and local communities to garner their support for the largest scale of bus route rationalisation, to increase operational efficiency and reduce congestion and emissions.

He appealed to the community to support Government and franchised bus companies' efforts to rationalise bus routes.