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Following is a question by the Hon Kam Nai-wai and a written reply by the Acting Secretary for Transport and Housing, Mr Yau Shing-mu, at the Legislative Council meeting today (March 18):
Question:
It has been reported that in recent months, quite a number of green minibus (GMB) operators, which operate routes on Hong Kong Island, had applied to the Transport Department (TD) for fare increases and some had applied for increase of more than 10%; the procedure adopted by TD for vetting and approving fare increase applications by GMB operators has long been criticised by people as lacking in transparency. In this connection, will the Government inform this Council:
(a) whether TD had reviewed in the past two years the criteria for vetting and approving fare increase applications by GMB operators and its consultation mechanism;
(b) whether it has assessed if the fare adjustment mechanism for franchised bus companies, which allows fare to go upward and downward, is also applicable to GMBs;
(c) whether TD had requested GMB operators to lower their fares in the past five years; if so, of the details of the GMB routes involved and the justifications for putting forward such requests; if not, the reasons for that; and
(d) given that a validity period is specified in the passenger service licences issued by TD to GMB operators in respect of the routes concerned, whether TD will approve applications by the operators for fare adjustments before the expiry of the validity periods; if so, of the reasons for that?
ReplyˇG
President,
(a) In assessing fare increase applications from green minibus (GMB) operators on a case by case basis, the Transport Department (TD) takes into account a number of factors, including:
(i) financial conditions of GMB operators, including operating costs and revenue;
(ii) service quality and service improvement plan;
(iii) availability of other public transport services with similar routing and their respective fares; and
(iv) public acceptability.
TD also collects views of the local people through the District Offices before approving a fare increase application from a GMB operator.
TD reviews the assessment criteria and consultation mechanism from time to time, taking into account views from the GMB trade and other concerned parties. The department considers the existing criteria for vetting and approving fare increase applications and the current consultation mechanism appropriate.
(b) The existing GMB services involve operators of different scales of operation, and the routes they operate and the patronage are also different. It may not be suitable to introduce a standard fare adjustment formula for GMB services. In addition, the scales of operation and investment of GMB operators are significantly different from that of franchised bus companies. Hence it is not appropriate to apply the existing fare adjustment mechanism for franchised buses to GMBs.
(c) According to the existing mechanism, fare adjustment applications are submitted by GMB operators to TD having regard to their operating conditions. TD would take into account operators' financial conditions, including operating costs and revenue, as well as service quality and public acceptability in assessing the applications. TD would monitor closely the operating conditions of GMB operators, and would continue to encourage GMB operators to consider offering fare concessions, taking into account their operating and financial conditions, in order to alleviate passengers' burden of travelling expenses.
(d) All operators providing GMB services must hold valid Passenger Service Licence (PSL). Before the expiry of the licence period, operators could apply to TD for extension of their PSLs. TD would assess the applications taking into account factors such as operators' past performance. During the course of operation with valid PSLs, GMB operators may apply to TD for fare adjustments having regard to their operating conditions. TD would take into account operators' financial conditions, such as operating costs and revenue, as well as service quality and public acceptability in assessing these applications.
Ends/Wednesday, March 18, 2009
Issued at HKT 15:41
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