Public consultation on review of MTR's add-on/drop-off fare mechanism in the second half of this year

The MTR's increase or decrease fare adjustment mechanism has been criticized for "only increase without reduction" for many years. The Secretary for Transport and Housing, Chen Fan, said in a written response to a member's question today (18th) that the mechanism will be launched as planned in the second half of this year The review will begin in the third quarter of this year to formulate a pragmatic and balanced plan.

He also pointed out that since the implementation of the mechanism in 2008, the average annual increase in MTR fares has been 2.1%, and the average rate of travel in the same period has been 2.6%.

According to data provided by the authorities, the MTR's total operating profit of vehicle operations during this period amounted to 16.6 billion yuan, with an average annual profit of 1.4 billion yuan.

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The average annual increase in MTR fares from 2008 to 2021 is 2.1%

In reply to a written question from the Legislative Council, Chen Fan said that the fare adjustment mechanism adopts a direct-driven formula, which is determined based on data from the Census and Statistics Department, and reflects the overall economic performance of Hong Kong, describing it as an "open, objective and transparent mechanism".

He continued that since the implementation of the mechanism in 2008 until 2021, the average annual increase in MTR fares is 2.1%, the average annual inflation rate in Hong Kong during the same period is 2.6%, and the average annual increase in the Hong Kong salary index is 3.9%.

MTR Hong Kong Vehicle Operation Business (Legislative Council document)

In the past 14 years, the MTR's car business has made a profit of 16.6 billion

According to data from the authorities, in the 14 years after the implementation of the mechanism, the total revenue of MTR's Hong Kong vehicle operation reached about 212.4 billion yuan, and the total expenditure was 195.7 billion yuan. Except for three consecutive years of losses since 2019, the remaining 11 years of Profits ranged from 1.6 billion to nearly 2.9 billion.

In the past 14 years, the operating profit of the vehicle business has reached about 16.6 billion yuan, which is an average of 1.4 billion yuan per year.

Chen Fan said that the fare adjustment mechanism is reviewed every five years. The next review will be carried out as planned in the second half of this year and is expected to be completed in the first half of 2023. Public consultation will begin in the third quarter of this year, and the Legislative Council will also be consulted at that time. , in order to formulate a pragmatic and balanced program.

There was no new application for a hotel taxi service license last year, and the application threshold has been lowered

In addition, some Members are concerned about the number of new applications and issuance of private (private), hotel and tourist hire car permits.

According to figures provided by the authorities, as of the end of 2021, the number of valid licenses for the three has not yet reached the upper limit, and there were no new applications for hotel taxi service licenses last year.

In response to criticism from the industry that the threshold for applying for the above-mentioned licenses is too high, Chen Fan replied in writing that the number of licenses granted at present is less than the upper limit. people who do not need to submit vehicle registration documents, apply for a "pre-assessment" request, so that they can buy a vehicle only after they are aware of the opportunity for approval.

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