SECRETARY:
F. CHOY. ACIS. AID,
Your Ref. CT 27/80 VIII
Our Ref. T/831/7 (1)
The Commissioner for Transport, Transport Department,
Guardian House, 6th Floor,
32, 01 Kwan Road,
Han Chai,
Hong Kong.
Dear Sir,
STUDER FARE SUBSIDY
30 APRIL 1979
“SILICIFY-HONGKONG"
CODE USED: BENTLEY'S
TELEPHONE No. 5-616171
Аллока
Ever since the revised scheme for the subsidy arrangement of student half- fare passes was introduced, CMB has been dissatisfied with the system. This has been primarily connected with the administrative burden and costs with which we are faced in operating the scheme not to mention the further costs involved in auditing as well as our loss of income through deferred payments of our claims. In our letter of 16 July 1976, we have detailed all the complications involved and notified you that we were not prepared to rep introduce the subsidy scheme from 16 September 1976. Your reply of 22 July 1976 merely mentioned that the matter had been referred to the Secretary for Social Services.
To quantify the financial implications of the scheme, the administrative and other costs to CMB may be summarised as follows:-
(1) Annual Salaries and proportional administrative costs for staff
engaged in administering the scheme.
Printing Costs.
$133,000
2,450
Audit fee.
25,000
Total
$166,450
(2) Fotimated loss of bank interest on deferred payment of subsidy during the period from the day when trips were made to the day when subsidy was received.
437,500
Total
$603,950
Since bus operating costs are now escalating at a significant rate, we are no longer able to contribute towards the subsidisation of education and some other way must be found by Covernment if it wiches to continue the travel subsidy in respect of students over the normal qualifying age for half fare travel on CMB buses since your letter of 7 June 1978 advised us that the subsidy scheme was to be continued only for another academic year starting from 16 September 1978 to 15 July 1979.
In view of the above, we regret having to advise you that with effect from the new school year in September 1979, CHB is not prepared to continue the existing student half-fare pass scheme and that all travel on CHB buses by students over the age of 12 years will be at normal full adult fares.
Yours/faithfully, CHTV// HOROR EUS
Dan lela
**G DI
M
RECEIVED
O APRIS