Hong Kong transport minister backs MTR Corp’s new fare adjustment mechanism in face of criticism

Lam Sai-hung supports decision to include only company’s profitability from property development in fare formula

But lawmaker Michael Tien says cost of living pressures will not be eased, calls move to strip out major profit sources from calculation ‘ridiculous’

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The MTR Corp’s new fare adjustment mechanism balances the public’s concern and the soaring maintenance costs of ageing trains and facilities, the transport minister says. Photo: Winson Wong

Published: 2:42pm, 22 Mar 2023Updated: 7:19pm, 22 Mar 2023

Hong Kong’s transport minister has defended an overhaul of the MTR Corporation’s fare adjustment mechanism amid criticism the city’s sole railway operator was doing too little to lower charges.

Secretary for Transport and Logistics Lam Sai-hung on Wednesday said the rail giant had struck a balance between addressing public concerns and coping with soaring maintenance costs for ageing trains and facilities.

He threw his weight behind the decision to include the company’s profitability from property development in the formula but not the overall profits.

“In recent years, the profitability of railway operations hasn’t had much space to improve. They even recorded losses because the company needed to invest resources to maintain and upgrade ageing infrastructure,” he told a radio show on Wednesday.

A child uses a ticket at the MTR station in Central. Photo: May Tse

Under the overhaul announced on Tuesday, the railway giant, in which the government holds a majority stake of about 75 per cent, would have to factor in profits from its property development at stations to mitigate ticket price increases.