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Following is a question by the Hon Gary Fan Kwok-wai and a reply by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, in the Legislative Council today (June 19):
Question:
For many years, the MTR Corporation Limited (MTRCL) and its predecessor have collected an extra charge of $0.1 (the surcharge) per journey from passengers paying the fares with Octopus Cards, in order to pay for half of the costs of the project of retrofitting platform screen doors (PSDs) and automatic platform gates (APGs) at MTR stations. Some members of the public have queried that it is an unfair practice of MTRCL to collect the surcharge from passengers while all the income generated from displaying advertisements on PSDs and APGs goes to the Corporation. In this connection, will the Government inform this Council:
(a) whether it knows when MTRCL started to display advertisements on PSDs and APGs, of the current number of PSDs and APGs involved, as well as the income generated from such advertisements last year;
(b) given that MTRCL and passengers have each contributed half of the costs of retrofitting PSDs and APGs, whether the Government will, based on the principle of fairness, request MTRCL to directly pass on to passengers the income generated from the advertisements on PSDs and APGs according to the contribution ratio; if it will, of the implementation timetable and details; if not, the reasons for that; and
(c) whether it knows the total amount of surcharge collected by MTRCL up to the end of April 2013, when the collection of the surcharge is expected to cease, and if MTRCL will pass on to passengers the costs of retrofitting APGs for the East Rail Line and the Ma On Shan Rail Line in future?
Reply:
President,
The MTR Corporation Limited (MTRCL) has all along worked towards providing safe and reliable train service for its passengers. Though according to international railway safety operation standards, platform screen doors (PSDs) or automatic platform gates (APGs) are not essential facilities, their provision can further ensure the safety of passengers waiting at platforms and reduce the accidents of passengers falling onto the tracks.
After the successful completion of the PSD trial installation and detailed assessment at Choi Hung Station in 1997 by the pre-merger Mass Transit Railway Corporation (MTRC), it announced in 1999 to proceed with the PSD retrofitting programme at 30 underground stations on the Kwun Tong Line, Tsuen Wan Line and Island Line in phases. For new railway lines started operating since 1998, PSDs or APGs have become a standard station feature and they are included during the planning stage of new railway projects.
The PSD retrofitting works at 30 underground stations started in 2000, and were completed in 2006. Apart from the installation of the PSDs, the works also included alterations of the environmental control systems (which comprise the ventilation, air-conditioning and smoke extract systems), construction of equipment rooms and modification of signalling system for the new operating environment with PSDs retrofitted. The total cost was about $2 billion.
As MTRC's original investment plan for constructing the early railway lines did not include this capital cost, passengers therefore had to contribute to half of the cost, i.e. $1 billion. On this basis, MTRC started to collect an additional $0.1 from each journey on the pre-merger MTR taken by passengers using Octopus cards in July 2000 until recouping the $1 billion expenditure in whole.
Given the constraints of the station structures, retrofitting PSDs at aboveground stations faced quite some technical difficulties. For instance, the complexity of installing the massive air-conditioning and ventilation systems to cope with the installation of PSDs is highly akin to station rebuilding. After the rail merger, MTRCL completed a technical study to overcome the difficulties concerned. MTRCL subsequently decided in 2008 to retrofit APGs at eight pre-merger aboveground and at-grade stations, including Heng Fa Chuen, Chai Wan, Kwai Fong, Kwai Hing, Tsuen Wan, Kowloon Bay, Ngau Tau Kok and Kwun Tong stations. The construction cost was about $300 million, with half of the cost (i.e. $150 million) similarly contributed by passengers using Octopus cards with $0.1 collected per journey. As a result, MTRCL will collect a total of $1.15 billion from passengers using Octopus cards for the retrofitting of PSDs and APGs.
My reply to the Hon Fan Kwok-wai's question is as follows:
(a) Since May 2003, the then MTRC and later MTRCL have been displaying advertisement on PSDs and APGs. A total of 17 stations and 960 PSDs and APGs have been successively involved. The revenue generated last year from this type of advertising was about $1.5 million.
(b) The purpose of collecting $0.1 for each journey using Octopus cards is to share the capital cost of retrofitting the PSDs and APGs. Last year, MTRCL invested about $17 million for the maintenance of PSDs and APGs, an amount far exceeded the advertising revenue from PSDs and APGs.
All profits generated by the advertising revenue (including those generated from the advertisements displayed on PSDs and APGs) of MTRCL are already included in MTRCL's underlying business profits. According to the profit sharing mechanism under the new Fare Adjustment Mechanism, MTRCL will, based on its underlying business profits each year, set aside an amount and put into a "fare concession account" to provide same day second trip discounts. Passengers will hence share MTRCL's operational success, and their burden from fare increase will be relieved. Taking 2012 as an example, MTRCL will contribute $150 million for this fare concession based on its underlying business profits.
(c) Up to April 2013, MTRCL has collected a total of $1.063 billion through the collection of $0.1 for each journey using Octopus cards. It is expected that the amount will be fully recovered in the first half of 2014. The $0.1 collection arrangement will then stop. As to when half of the capital cost can be fully recovered, it depends on the patronage in the coming few months. For the APG retrofitting works along the Ma On Shan Line (MOSL), as the original number of train compartments will increase from 4 to 8, to link up with the train service of the Shatin to Central Link (SCL), the retrofitting of APGs will also have to tally with the SCL project. The existing platforms of MOSL therefore have to be extended to allow the usage of the 8-compartment trains. As the East Rail Line (EAL) will also link up with the SCL, the retrofitting works of APGs along the EAL will also proceed in tandem with the construction works of SCL, to minimise the unnecessary duplication of works and inconvenience to passengers. To address passengers' concern and the latest requirement on railway safety, the Government is discussing with MTRCL to seek for an arrangement where passengers do not have to bear part of the capital cost. A decision will be made later.
Ends/Wednesday, June 19, 2013
Issued at HKT 15:32
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