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. Her call attracted a positive response. But she said on Saturday night that more could be offered.