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PART II THE STAR FERRY FARE ISSUE
(c) Special position of monopoly undertakings
It was suggested that whereas ordinary private enterprises were entitled to strive for the maximum profits, public transport companies were under a special obligation to the public because their operations are protected by franchise.
(d) Harmful effect on economic stability
Many of the comments stated that any increase in public transport fares would lead inevitably to a general increase in prices and have an adverse effect on the economy. Some stressed the point that the hard- ships of higher fares would fall mainly on the poorer classes; other feared a further weakening of Hong Kong's economic situation at a time of business depression.
47. The conclusion reached in the bulk of the press comment at this time was that Government must reject any application for fare increases, even if justified, in the overriding interests of avoiding a spiral of price increases. One paper suggested (Sept. 16th) that the fares could be reduced in view of the profits which public transport companies had made in the past.
48. Throughout this, there was little comment by the public transport com- panies or by Government and it appears that only two papers mentioned the fact that present charges were not high, taking into account the current level of the cost of living, and that an increase might be justified. One paper mentioned on September 16th that the alternative would be to increase taxes to subsidize public transport. However, even these papers stressed the strength of public opposition to any increase in fares.
49. Comment in this vein continued through October, 1965 and both the Chairman and the Secretary of the Advisory Committee on Public Transport, the forerunner of the Transport Advisory Committee, were attacked for reported statements that fare increases were inevitable and were not necessarily a disaster if they were essential to the improvement of service or the maintenance of an acceptable standard of service (morning and evening papers October 6th). A suggestion by the Chairman of the A.C.P.T. on 20th October that the people of Hong Kong 'are prepared to pay for an efficient system of transport at reasonable standards rather than put up with an inadequate but cheaper service' was widely criticized.
50. A Legislative Councillor was quoted as saying that he doubted whether an increase in fares would result in an improvement in services, and the unfavour- able reactions of certain civic leaders were prominently reported in most papers. The critics lost no time in putting forward the view that the A.C.P.T.'s widely published acceptance of the inevitability, and possibly the desirability, of fare