CONFIDENTIAL ## 機密
3
operators who raised their fares indiscriminately and at the expense of the general public. It was also thought that the MTR would be setting a most undesirable precedent as other modes of public transport would follow suit and seek to set a higher fare during rush hours. This was clearly contrary to the main purpose of the MIS which, by maintaining a moderate fare structure and by absorbing a large number of commuters, should help to ease the heavy demand on other public transport and so indirectly help to bring down the fare levels of such public transport, especially the PLBs.
5.
Other queries raised as regards the fare
structure included
(a)
(b)
Whether there would be an annual adjustment of the fare structure in accordance with the inflation rate; and
It was
Whether the fare structure would be pitched at the level which the MTRC considered as necessary for the explicit intention of ensuring that the loans secured could be repaid within the stipulated time. thought that to fix the fare on this premise alone and without due regard given to the revenue that would be generated as and when MTRC developed its properties was both unrealistic and unfair. Some respondents actually asked whether the MTRC was ready to consider lowering the fare if very high profits were secured in subsequent years. These respondents called to mind the example of the Cross Harbour Tunnel; that whereas the fare of $5.00 was fixed on the assumption that it would take some 10 years before the total capital expenditure for the construction of the tunnel could be recovered, experience had shown that the Company was able to make profits much earlier.
CONFIDENTIAL. #
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