Hong Kong’s embattled MTR Corp under fire for raising fares by 3.3 per cent
- Despite controversies, city’s rail operator earned underlying profit of HK$11.2 billion in 2018
- System keeps fare rises in line with changes in median monthly household income
Hong Kong’s embattled rail operator is set to raise ticket prices by 3.3 per cent this summer, at a time when it faces intense official scrutiny and public criticism over a series of construction scandals and service breakdowns.
As government data on which the fare-adjustment mechanism is based was released on Thursday, setting the stage for higher ticket prices, the MTR Corporation was quick to point out that most passengers would not have to pay extra because the increase would be offset by a 3.3 per cent rebate for the rest of the year.
Under the fare mechanism deal between the MTR Corp and the government, its majority shareholder, ticket price increases are calculated based on the inflation rate and a wage index for transport workers.
The government announced on Thursday that transport workers had received an annual wage increase of 5.9 per cent last December, which would mean an automatic fare rise of 3.6 per cent, but the amount is capped at 3.3 per cent in keeping with the annual growth of the median monthly household income. This marks the first time the cap has kicked in since it was introduced in 2013.
The MTR Corp said the remaining 0.3 per cent increase it was entitled to impose would be rolled over to the 2021-22 fiscal year.