In all cases, the schedules of fares include student concessions as detailed in Annexes A and B: the CMB may not, therefore, without the Governor in Council's consent cease to afford student concessions as claimed in its letter at Annex D, though it may back out of the agreement currently in effect with Government provided it maintains the concession.
31
The position as regards HKT is not clear but agreement may be able to be reached with the company in any case by rounding the half-fare " up to 20 cents insteads of downto 10 cents, and it is proposed that this approach should be pursued.
G
Alternatives
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If the proposal is not adopted, and the Government continues to subsidise CMB, KMB and HKT, it is considered that it will be difficult to resist extending the system to other public transport concerns on the same principles. This would mean an increased financial commitment, which though difficult to calculate could be of the total order of $45m. $50m. per year.
Details and assumptions are at Annex G.
G.S. 166
Consultation
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The Transpot Advisory Committee has been consulted and approved the proposed policy guidelines. It has recommended that the new scheme be applicable to students aged twelve and over and up to and includ- ing the academic year in which the student reaches his 15th birthday, from the start of the next academic year.
Public reaction
34
The joint view of the Secretary for Home Affairs, the Secretary for Information and the Director of Home Affairs on the public reaction to these proposals is that they are likely to be considered unreasonable by the general public and will provide a catalyst for strong and open criticism of the government by pressure groups. There is a well-established sympathy towards the concept of cheap fares for students but it is no part of that concept that the cost should be borne by the travel- ling public. In fact the proposal will be seen by the general public not only as an abrogation by the government of its own policy of directly subsidising education but, more dangerously, as providing the transport companies with an ostensible reason for raising fares generally. In its present sensitive mood about inflation and the suspicions prevalent about a government behind-doors strategy to ensure the financial viability of the MTR the reasons advanced to justify these proposals are most unlikely to be accepted.
CONFIDENTIAL