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CONFIDENTIAL
For information (31.3.87)
NOTE FOR EXECUTIVE COUNCIL
XCCI (87) 17 Copy No...
.23
MASS TRANSIT RAILWAY FARES FOR 1987
INTRODUCTION
Under section 6 of the Mass Transit Railway Corporation (MTRC) Ordinance (Chapter 270), the Corporation has the power to determine the fares payable by its passengers. The purpose of this note is to inform Members of
Members of the decision of the
the Board of Directors of the MTRC regarding revisions to the existing fares for 1987. The note also outlines the factors MTRC took into consideration in arriving at this decision.
BACKGROUND
MTR Fare Policy
2
The MTRC is obligated under its Ordinance to "ensure as far as possible that, taking one year with another, its revenue is at least sufficient to meet its expenditure" and also to operate the MTR system "having regard to the reasonable requirements of the public transport system of Hong Kong". The MTRC believes these criteria can best be attained by a continuing policy of making modest annual fare increases rather than larger increases at less frequent intervals.
3
MTR fares were last revised on 23 May 1986 coincident with the opening of Sheung Wan station. The effect of this fare review was to increase the average fare on the MTR (including the Government's reimbursement for student travel) from $2.90 to $3.06 or by 5.5%.
MTR Financial Position
4
Weekday patronage on the Modified Initial System in early 1982 was 720,000. This increased to 1.18m by the end of 1982 following the opening of the Tsuen Wan Line. It then stayed virtually unchanged until 1985 when the opening of the Island Line resulted in the weekday system patronage increasing to 1.41m passengers on weekdays. Following the opening of the last section of the Island Line from Admiralty to Sheung Wan, the weekday patronage increased further to nearly 1.6m. The annual patronage and fare
revenue for 1982 to 1986 summarized below.
are
CONFIDENTIAL
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