Hong Kong railway fares should be adjusted according to operator’s profits, consultation finds

Suggestions follow 2.65 per cent fare rise this year after MTR Corp made HK$13 billion profit

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The MTR Corp has raised fares for seven straight years despite making vast profits. Photo: Felix Wong

Published: 8:28pm, 27 Oct 2016Updated: 10:48pm, 27 Oct 2016

Hong Kong’s MTR rail operator should reflect its profitability in its fare adjustment mechanism by freezing or even cutting prices when profits reach a certain threshold, submissions to a public consultation suggested.

The Transport and Housing Bureau announced on Thursday that 408 submissions had been received in the consultation from May to August. Of these, 349 sent in by political parties, community groups, think tanks and other organisations, were identical.

“The government noted that the mainstream views received during the consultation period suggest that the existing [mechanism] should be improved. Particularly, the operation of the [mechanism] should duly reflect the profitability of the [MTR],” a bureau spokesman said.

The Hong Kong government, which owns about 75 per cent of MTR Corp shares, has passed the views to the railway company. A review of the mechanism was continuing and the outcome would be reflected in the fare adjustment next year, the bureau said.

The results of the consultation were announced after the MTR Corp triggered another round of fierce public protests when it announced a fare rise of 2.65 per cent earlier this year, despite making a HK$13 billion profit last year.

It was the seventh straight year that fares had been raised since the much criticised mechanism, which takes into account inflation, wage increases and productivity, came into effect in 2009.