XCR(7})
18
Introduction
The Kowloon-Canton Railway (KCR) has issued student concessionary tickets since the financial year 1946/47, the grounds for this being social and educational. Since 1957, when the current form and price of ticket was introduced, any student certified by the Education Department to be attending an educational institution full- time has been able to purchase, for a flat rate of $48, a scholar ticket which is valid for six months (the cost therefore being $8 per month). These tickets can be used on any trains for any distance except on Sundays and public holidays. In addition to the scholar tickets, the General Manager Railway issues child tickets which are available to any child under the age of 12 travelling on the KCR and which are charged at half the appropriate adult fare.
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In 1974 there was a general increase of about 35% in KCR fares but the scholar ticket remained at its former level of $48 for six months. This was because the Transport Advisory Committee wished to have the implications of an increase in its price further considered before recommending this. Shortly afterwards, a review" was instituted of the general question of the continuation of student travel subsidies (i.e. those paid by the Government in respect of student travel on franchised buses and trams as well as on the KCR) and it was decided to look at the particular problem of KCR fares in that context. The general question was not brought to a speedy conclusion, however, and KCR scholar tickets have continued to be issued at the rate existing since 1957. As a result, a student with a ticket is now receiving a subsidy equal, on average, to about 80% of the cost of a normal adult ticket.
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This anomalous situation has several times been mentioned by the Director of Audit in his Annual Reports and it was discussed in the Public Accounts Committee of the Legislative Council on 29th November 1978. The Committee, having questioned the Secretary for the Environment on the background, made it clear that they would like to see this anomalous position rectified as soon as possible. The purpose of this memorandum, therefore, is to seek Members' approval for the means of doing this.
CONFIDENTIAL
機密
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