1975, money wages have risen by about 50% and real wages have increased by about 25%. So, for this reason also, the new fares should be more attractive to the public than those indicated in 1975. However, in 1975 it was assumed that bus fares would retain their real value and, for reasons indicated later in this memorandum, this has not happened.
Development of an Improved and Integrated Public Transport System
4
It has always been accepted that the fares charged and the service provided by the MTRC are bound to have an effect on other passenger transport services in Hong Kong. The opening of the MIS presents an opportunity of raising the standards of maintenance and safety on public transport generally to levels which should already have been achieved. When, on 6th February 1979, Members considered the draft White Paper on internal transport policy, they asked the Secretary for the Environment to prepare a memorandum setting out the Government's current views on the management and operational efficiency of the two major bus companies. Work on this is now proceeding and, after consultation with the TAC, a memorandum will be presented when the franchises of both companies come up for review and roll-over later this year. This will, inter alia, consider the companies' current maintenance and safety standards and the extent to which they would need to be improved to bring them up to acceptable levels. To do so has not hitherto been possible because the demand for public transport, particularly buses, has been so high in relation to the capacity available that to have enforced higher standards would have reduced the number of buses in service to the further detriment of the travelling public. When the MIS comes into service, however, there will be a quantum jump in public transport capacity and this will present an opportunity for the Government to insist on higher standards of bus maintenance and safety.
5
Since June 1978 the Government, in consultation with the public transport operators including the MTRC, has been developing an integrated public transport system in a project referred to as DIPTRANS. A system is being planned for implementation with the staged opening of the MIS and this would be progressively modified to take account of the electrification and modernisation of the Kowloon- Canton Railway (KCR), the opening of the Tsuen Wan Extension of the Mass Transit Railway and the possible development of a Light Rail Transit system on Hong Kong Island. Within the DIPTRA NS project, recommendations are being developed for progressive implementation with the phased opening of the MIS:
CONFIDENTIAL