Cost
7
The scheme has become more and more expensive each year. The total Government subsidy has risen from $7.7m in 1973 to $33.0m in 1978 as detailed at Annex C.
Policy Review in 1976
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The policy of subsidising student travel on KMB, CMB and HKT was reviewed in 1976 by an inter-departmental working party appointed by the Secretary for Social Services. The working party considered that, quite apart from the growing cost and the difficulties of negotiating satisfactory arrangements with the bus companies, the scheme was unsatisfactory and should be discontinued.
9
10
(a)
The reasons were as follows:
The scheme benefits all students regardless of financial need;
(b) The Government pays subsidy for many journeys that are never carried out. (As virtually all students are eligible for passes, which are free of charge but on which Government pays a subsidy regardless of use, many students apply for passes which may seldom be used);
(c)
(d)
(e)
Subsidised travel, and in particular the provision of monthly passes free of charge, encourages students to make unnecessary journeys where they would otherwise be prepared to walk, thus contributing to crowding on the buses and the inconvenience of full- fare-paying passengers;
The scheme only benefits those travelling by bus or tram, not those travelling by tunnel buses, minibuses or private contract buses; and
Most importantly, there would be difficulty in resisting pressure to extend the scheme to cover other transport concerns (HYF, SF, NLB and the
Mass Transit Railway Corporation (MTRC)) if the scheme continued to operate.
However, the working party recognised that the withdrawal of Government subsidy and the consequent likely withdrawal of the
CONFIDENTIAL #