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A government spokesman said today (September 17) that views from the public are being sought on the review of the Fare Adjustment Mechanism (FAM) of the MTR Corporation Limited (MTRCL).
The spokesman said that since the merger of the two railway networks in December 2007, an objective and transparent FAM has been adopted to replace the fare autonomy of the pre-merger MTRCL.
The existing FAM is a direct-drive formula that takes into account changes in the Composite Consumer Price Index (CCPI) and the Nominal Wage Index of the Transportation Section (NWI(TS)) as well as a pre-determined productivity factor. The adoption of the CCPI and the NWI(TS), which are published data of the Census and Statistics Department, seeks to align fare adjustments with economic conditions and wage levels. Based on the data of these objective indices, fares are maintained, or adjusted upward or downward annually.
"Notwithstanding that the existing FAM and its components in the formula were thoroughly discussed and considered by the community and the Legislative Council during the rail merger, the Government is aware of the recent views that factors such as MTRCL's profit level, service performance, and public affordability and acceptability should also be taken into consideration when MTR fares are reviewed each year according to the FAM," the spokesman explained.
The Government has served a written notice to MTRCL to conduct a review on the FAM, with a view to completing the exercise by early 2013.
Starting from today and continuing until October 31 (Wednesday), the Government is inviting the public to offer views on the FAM review.
The consultation paper on the review of the FAM can be downloaded from the websites of the Transport and Housing Bureau (www.thb.gov.hk) and the Transport Department (www.td.gov.hk). The public may send in their views in writing by post (addressed to the Bus and Railway Branch of the Transport Department, 40/F, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong), by fax (2802 2679) or by email (fam-review@td.gov.hk).
Ends/Monday, September 17, 2012
Issued at HKT 17:36
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