The reason for the choice of 1st March 1979 for the proposed implementation date is that, under the present system, six-monthly tickets are issued with effect from 1st March and 1st September so this is the next convenient date. Alternatively it should be possible to introduce the increase from, say, 1st April 1979 by some means such as over-stamping the present six-monthly tickets to make them valid for an additional month.
General Review of Student Travel Subsidies
8
In paragraph 2 above it was noted that the present anomalous situation with respect to KCR scholar tickets has been allowed to continue partly because it was absorbed into the general review of Government's student travel subsidies. It is expected that proposals with regard to the general question will shortly be put to Members. If, however, the present proposals are accepted it is not intended to introduce any further change in the near future with respect to KCR student tickets as it is felt that any additional increase in the cost of student travel on the KCR would be unacceptably harsh in effect if brought in too soon after this proposed increase. The General Manager Railway also considers that it could well prove commercially disadvantageous to do so because of the numbers of students who would be likely to switch to other forms of transport.
Publicity and Public Relations Implications
9
The Director of Home Affairs has assessed public reaction to the possibility of an increase in the cost of a KCR scholar ticket to the equivalent of a child fare. His conclusion is that the public largely accept that the present situation is anomalous and should be rectified, and that they would probably not react adversely to an increase of the order proposed. The Vice-Chancellor of the Chinese University has also been consulted confidentially and he is of the opinion that his students will accept the increased charges with reasonable equanimity.
10
It has to be accepted, on the other hand, that the proposals would come into effect at a time when the public are becoming apprehensive about price rises in many areas (e. g. taxi fares and water charges) and this might make them less acceptable than they would be in a period when prices generally are more stable. Further- more, only a short period of notice would be possible between now and the proposed implementation date of 1st March 1979 and the view might be taken that this was too abrupt (but see paragraph 7 above).
CONFIDENTIAL **