Editorial | MTR fare formula overhaul should address perceived problems
- The formula was meant to enable fare cuts or increases according to the state of the economy. But it does not take into account public perceptions of profits and performance, the latter of which is under the spotlight amid growing concerns over construction scandals and service breakdowns
It would seem hard for the public to swallow any transport fare hikes amid a prolonged epidemic. Even when the ticket prices of the Mass Transit Railway are to be frozen along with the extension of an array of rebates, the prospect for the profit-making utility to recoup an accumulated 3.35 per cent rise in future under a controversial formula has irked many commuters.
With the adjustment mechanism due for a review later this year, it would do well for the government to make good use of the opportunity to address the perceived problems once and for all.
Despite what is said to be its worst patronage during the fifth wave of Covid-19 outbreak, the railway giant has rightly extended the concessions under a HK$2.8 billion (US$357 million) promotion package.
This came after the formula that takes into account inflation, transport workers’ wages and other factors had not exceeded the level that warrants adjustments in the coming year.
The reason why MTR Corp is still able to give passengers some relief owes much to its dominance in the market. To the envy of many struggling businesses, it posted profits of HK$9.55 billion for last year, a significant turnaround from its record losses in 2020.
