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In response to media enquiries about fare adjustments of the MTR Corporation Limited (MTRCL) in 2009, a Transport and Housing Bureau spokesman said today (March 26) that this was the first time following the rail merger that fare adjustments were dealt with in accordance with the fare adjustment mechanism (FAM).
Based on the relevant Wage Index (WI) for the transport services sector just released by the Census and Statistics Department and the Composite Consumer Price Index (CCPI) released earlier, the outcome of the FAM was ¡V1.05%. As this did not trigger the fare adjustment threshold under the FAM, MTRCL would not adjust its fares in 2009.
The spokesman further explained that the triggering mechanism under the FAM was set at ¡Ó1.5%. In other words, there would be no fare adjustment if the outcome of the FAM was below ¡Ó1.5%. However, the adjustment rate would be carried forward to the following year for implementation.
"Upon the rail merger, MTRCL fares are to be adjusted according to a fare adjustment mechanism which is objective and transparent," the spokesman said.
"Under the mechanism, fare adjustments will be made in accordance with a direct-drive formula linked to changes in the CCPI, WI and a fixed productivity factor."
Ends/Thursday, March 26, 2009
Issued at HKT 17:30
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