New fare adjustment framework studied, says transport chief

A new fare adjustment framework that will encourage transport operators to seek fare cuts is being studied, said a top official.

Secretary for Environment, Transport and Works Sarah Liao Sau-tung made the remarks in an interview with ATV last night after attending the opening of the MTR's Tseung Kwan O Line.

Dr Liao said the present public transport fare adjustment system gave little incentive for operators to consider fare cuts.

She said the government was now looking for a new mechanism that could govern the level of fare rises and cuts by public transport operators but one that ensured government interference would be kept to a minimum.

'No firm plan has been drawn up. But we have to . . . study how to produce a fare adjustment mechanism that is simple and fair.' Dr Liao said pegging fares to the goods price index would not work as such a system would limit the flexibility of fares and restrict the operation of a company.

Two weeks ago, she called on operators to offer concessions.