Social News
Written by: Zhong Yan
2021-03-28 10:00
Last update date: 2021-03-28 10:00
Following the Hong Kong Government’s earlier approval of the four franchised bus fare increases, another public transport agency will soon announce fare adjustment arrangements for the coming year.
On Monday (29th), the Census and Statistics Department will announce the nominal wage index of the transportation industry in the fourth quarter of last year, and will activate the MTR fare adjustment formula, which means that the MTR fare adjustment rate will be finalized in the coming year.
In response to the decline in the monthly income of family households, MTR fares will at least be frozen in the coming year due to the "cap" mechanism. However, under severe economic adversity, whether the mechanism can "subscribe" to its function has been reduced for the first time. The price result has attracted much attention from the public.
Once the plus and minus formula is calculated, it is calculated that this year's fare reduction will reach 1.5% or more. This year, there will be the first fare reduction since the mechanism was implemented.
Tian Beichen, the former chairman of the KCRC and member of the Legislative Council of the Real Political Roundtable, has recently estimated that the final fare of the MTR may see a slight decrease of 1.5% to 1.6%.
However, the MTR 20% discount will end this month. Even if the fare is slightly reduced, if the discount is not extended, the actual fare of the public will increase significantly from April.
Some political parties suggested that the government and the MTR should share the burden and consider extending the 20% discount for an additional 6 months.
The MTR is expected to announce price adjustments next week. If there are no concessions every other time, when the 20% discount on the fare expires, the actual fare paid by the public will increase.
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If the nominal wage index of the transportation industry falls by more than 1.1%, the price will be reduced
The Census and Statistics Department will announce on Monday (29th) the nominal wage index of the transport industry for the buying quarter of last year. This is the last data that will affect the results of the addition and subtraction mechanism. Whether the MTR can reduce fares will be revealed on the same day.
"Hong Kong 01" is calculated according to the plus and minus formula. If the nominal wage index for the transportation industry in the fourth quarter of last year released on Monday fell by more than 1.1%, the result of the MTR formula will fall by 1.5% or more, and price reductions will need to be initiated in the coming year. .
The calculation results of the MTR fare adjustment equation in the past two years have all touched the "cap" mechanism, and the results have not been increased according to the results. The cumulative increase of 1.58% needs to be added this year.
However, looking at the activation conditions of the MTR plus and minus mechanism, as long as the equation yields a price reduction result, and the rate of reduction is 1.5% or more, the price reduction must be initiated first.
News: Delayed increases that have not been increased in the previous two years will not be revoked
As for the 1.58% deferred increase that has not been increased and needs to be recovered from the previous two years to this year, how will it be handled?
According to "Hong Kong 01", the MTR and the Hong Kong government had discussed the issue. Both parties agreed to deal with the issue in accordance with the existing mechanism. The cumulative increase may be postponed for one year, but it will not be completely revoked. The specific handling method will be announced on Monday. .
According to the mechanism, MTR originally had an additional 1.27% of the undelayed increase in 2022 to be dealt with. If combined with the unprocessed deferred increase this year, that is, the undelayed increase that needs to be recovered next year, the cumulative increase will reach 2.85%. .
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The political parties advocate that the government and the MTR share a commitment to extend another 20% discount for 6 months
Regardless of whether the MTR can cut its fares in the end next week, the government subsidized the MTR’s 1.6 billion yuan to provide a 20% discount on the fare that ended on March 31. The government has indicated that it will not provide any more subsidies. MTR Chairman Ouyang Boquan and Chief Executive Officer Jin Zepei both stated on different occasions that it is difficult for MTR to continue to provide relevant concessions alone.
The Chairman of the Transport Panel of the Legislative Council, Chen Heng-pin, pointed out that after the 20% discount is over, even if the fare freezes "do not add up", he thinks it is difficult for the government to explain to the society, and believes that the government and the MTR should share the 20% discount. month.
Lu Chung-hsiung, a member of the Legislative Council of the Federation of Trade Unions, also pointed out, "Suddenly a 20% discount has changed, and it feels like a big price increase."
He believes that the epidemic economy has not improved, the government has a role, and the MTR must also have corporate social responsibilities. He suggested that "one person and half" should bear the cost of an extended 20% discount for 6 months.
If the MTR does not have a 20% discount on buses, the fare gap will narrow
Under the epidemic, public transportation has experienced a wave of fare increases against the market. First, the Star Ferry increased by an average of 16.5% starting from December 16 last year, and the New World First Bus, Citybus, KMB and Yuba will also increase their fares by 8.5% from April 4th. It ranges from 12%.
"Hong Kong 01" simulates two sea routes and compares the fares of buses and railways.
Among them, from Tin Shui Wai to Central, the current bus price is similar to the MTR price. However, after the price adjustment, if the MTR does not have a 20% discount, even if the citybus increases the fare, the bus is still more than $5 cheaper than the MTR.
As for the route from Ma On Shan to Central, the current bus is about $4 more expensive than the MTR. However, after the price adjustment, the fare gap between the two modes of transportation has narrowed significantly, and the bus fare will only be 4 cents more expensive than the MTR.
▼View the latest fares of all KMB routes and joint-operated routes▼
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