MTR Fare Adjustment Mechanism
The fare adjustment mechanism is a system regulating the fare increment of public utilities, including the Mass Transit Railway Corporation Limited (MTR). Under the mechanism, adjustment of MTR fare no longer need to be approved by the Legislative Council nor the Executive Council. The MTR has no autonomy in its fare setting, and the fare has to be set in accordance with a fixed formula. Originally, the mechanism aims to limit the soaring MTR fare increment by a transparent formulaic approach. However, Hong Kong has recorded continuous inflation in recent years, the MTR fare has then kept rising since 2010. Such phenomenon was greatly criticised by the general public. Background MTR KCR merger The discussion of the merger started early in 2004, after KCR won MTR over the Shatin to Central Link (SCL) deal. After two-year negotiations, the government signed a non-binding Memorandum of Understanding (MOU) with MTR on 11 April 2006, listing the changes with respect to the merger: ( ...
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