concession by CMB, KMB and HKT would be unpopular. It was also concerned about the costs which would be incurred by low-income families in sending their children to school. It was therefore proposed that termination of the Government subsidy should be accompanied by:
11
(a)
(b)
measures to off-set these costs by subsidising other necessary items of educational expenditure for low- income families; and
an expansion of the existing school bus scheme on a self-financing basis using contract hire buses.
A number of educational proposals have since been considered in the context of school travel subsidy, but it has not been possible to devise a package which could be presented to the public as a reasonable whole or which could be easily administered. Nor has it been possible to encourage the development of more school bus schemes until the general policy issues behind school travel subsidies are settled. They would in any case be likely to prove expensive.
12
As a result the Government has not yet withdrawn its subsidy arrangements, but is nevertheless still seeking a way to terminate the scheme as it now exists.
II PROPOSED FUTURE POLICY FOR STUDENT TRAVEL Background to a further review of the policy
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As in all matters relating to public transport, considerable public interest would be aroused by any Government proposal to withdraw the subsidies, with considerable opposition should the Bus Companies and HKT as a result decide not to continue a concessionary fare system. The provision of a student travel concession for those aged 12 years and over in one form or other has come to be expected by the people of Hong Kong as a part of the overall fare structure for public transport facilities. It is therefore considered that the policy for student travel subsidy should be reviewed as a whole and all public transport concerns set on the same footing for the future.
14
In sum, therefore, the reasons necessitating a review now of
the existing student travel subsidy scheme are:
(a)
the advice of the Working Party
(b)
the increasing cost of the scheme to Government as a hidden educational subsidy
CONFIDENTIAL #3
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