The Government consulted the public on the review of the Fare Adjustment Mechanism (FAM) of the MTR Corporation Limited (MTRCL) during the period from May 20 to August 19 2016. The Government announced the views received during the consultation period on October 27.
A Government spokesman said that, during the three-month consultation period, the Government received 408 submissions, of which 349 were emails with identical content. These submissions were submitted by different individuals, organisations and groups in the community, including Members of the Legislative Council and District Councils, political parties, think tanks, residents' groups and individual citizens.
"The Government noted that the mainstream views received during the consultation period suggest that the existing FAM should be improved. Particularly, the operation of the FAM should duly reflect the profitability of the MTRCL. The Government has already reflected to the MTRCL the views received, and will duly consider these views in the course of reviewing the FAM of the MTRCL. The outcome of the review will be effective in the fare adjustment in 2017," the spokesman said.
The Government mentioned in the consultation document that the main direction of the review is to see how the operation of the FAM could better respond to public concern about the relationship between the FAM and the MTRCL's profitability as well as affordability for passengers, whilst still respecting the financial prudence required of the MTRCL as a listed company, on the premise that a transparent fare adjustment mechanism based on public and objective data and a direct-drive formula will be retained.
Key views received during the consultation period have been uploaded to the website of Transport and Housing Bureau and the website of Transport Department.