The fare concessions four franchised bus companies are offering can ease the burden of transport costs on the public, especially those living in remote areas who spend more than 10% of their income on travel, the Secretary for the Environment, Transport & Works says.

Speaking on Commercial Radio's new programme, Dr Sarah Liao said we need to establish a system based on an objective index that allows fares to go up and down.

Dr Liao said it takes a long time to establish such a system. In its discussions with the transport operators, the Government has tried its best to alleviate the pain of the public.

Responding to criticism that some bus companies have made use of the passenger fund to offer the concessions, Dr Liao said the money in the reserve fund is aimed at relieving the pressure on fare rises at the time of inflation.

She saw no problem that it now was used to relieve the passengers' burden.

She stressed that in formulating a fare-adjustment mechanism, the Government has to strike a balance between the interests of the public and the operators.

It must not affect employment in the relevant industry, she added.

She said the Government's role is to provide a stable business environment for investors and its policy must be clear and consistent.

Dr Liao hoped the Government and the public transport operators can work out a fare-adjustment mechanism which allows fares to fall during an economic downturn and to rise when the economy improves.