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The Government issued a letter to the MTR Corporation Limited (MTRCL) today (March 22), asking the Corporation to advance by one year a joint review with the Government on the Fare Adjustment Mechanism (FAM).
According to the Operating Agreement entered into by the Government and MTRCL in 2007, the two parties may review the FAM every five years. The last review was completed in 2013 and the next scheduled review is due for completion in 2018.
The review in 2013 introduced multiple measures, which reduce citizens' fare burden of travelling on railway and also maintain the financial viability of MTRCL as a listed company.
A government spokesman said, "The experience gained so far since the last review suggests that there is possible room for an early review of the FAM, so that the operation of the FAM can further respond to the public concern about the Corporation's overall profitability and passengers' affordability, whilst still respecting the financial prudence required of the Corporation as a listed company."
The Government is looking forward to early response of the Corporation, so that the review can start early. It is the Government's objective to advance the review by one year, so that the new FAM can take effect in 2017.
Ends/Tuesday, March 22, 2016
Issued at HKT 20:53
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