The study of transport subsidies in Hong Kong

Abstract

Transport, as a key area of daily expenses, is not normally subsidised by the Government until the first launch of Transport Support Scheme (TSS) in 2007. It initially came from one of many measures of alleviating poverty recommended by the Commission on Poverty in the Policy Address 2007-2008. It was then replaced by territory-wide Work Incentive Transport Subsidy (WITS) Scheme and subsequently applied to resolve the issue of wealth gap in the Policy Address 2010-2011 and 2011-2012. Even though several reviews have been done and a range of relaxations have been implemented over the past five years, a very clear and supportable policy objective of transport subsidy has been defined in which encourage the low-income working poor to go out, to seek jobs and ultimately promote sustained employment. It is believed that the direct monetary subsidy can help them relieve burden on travelling expenses commuting to and from work. From the perspective of planning, this study identifies the transport needs of low-income working poor who live in remote districts in relation to the new town planning and recognises the effectiveness of current WITS scheme on encouraging employment. Based on the data collected from questionnaire survey, this study also tries to develop a simulation model to test their willingness of commuting to work across the districts towards transport subsidy. It also incorporates the views and aspirations from the beneficiaries, and puts forward recommendations on how the transport subsidy can be enhanced in future. It is hope that it will pave the way for future studies on transport subsidy.