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    Democratic and Reform Resources Centre, Powered by Joomla!
    25 Mar 2011 列印 E-mail

    Category

    Transport Policy

    Issue

    • MTR increases fares

    News Content

    • Although earning big profits in 2010, MTR Corp. announced yesterday a fare increase amounting to 2.3% would take effect on June 1.
    • The fare increase was derived from a fare adjustment formula incorporated in 2007, which took into the consideration of the composite consumer price index and wage levels of transport workers. It is reported the formula is prone to a positive income, that is, a fare increase during times of inflation.
    • MTR defended the increase, saying it is based upon the needs for purchasing new trains and upgrading services.
    • But the increase has sparked public worries on its impact on the inflationary spiral. The Coalition to Monitor Public Transport and utilities worries the fare increase will impose extra burden to the public.

    Questions

    • The fare increase is not justified, as the MTR has earned big profits in 2010. It was reported the MTR Corp’s underlying profit – profit excluding annual revaluation of properties – jumped to HK8.66 billion last year.
    • The fare increase is not justified, as the public witnessed a decline in its quality of service.
    • The MTR Corp., the city’s sole rail operator, should channel its profits made from its real estate properties to ease the pressure of inflation.