Publicity over MTRC fares will be a matter for the Corporation, but this will be greatly assisted by a continuation of the well-established liaison between the Corporation, the Information Services of Government and the City District Officers. Indications are that the public could well be agreeably surprised that the fares have not been set at a higher level. The announcement of MTR fares will inevitably give rise to speculation as to whether buses will be re-routed to ensure that the MTR is profitable and bus fares increased to encourage more passengers to use the MTR. The outcome of the DIPTRANS studies is unlikely to be made public before the Autumn and any consequent re-shaping of bus routes to link with the MTR services will not be finalised until then. At that stage, a carefully planned publicity programme will be arranged to ensure that the travelling public is fully informed of the new bus services and the rationale behind the arrangements. As for bus fares, any public statements will make clear that any increases in fares for existing bus services which may become necessary will in no way be connected with fares to be charged on the MTR and will be approved only on application by the companies on the normal basis of increasing operational costs.

Advice Sought

13

Honourable Members are invited to note the Corporation's fare proposals and their underlying assumptions and to note also that further proposals will be put to them later in the year on the restructuring of other public transport services following the opening of the MIS and on the performance of the two major bus companie s.

(The Secretary for the Environment (Mr D. J. C. JONES), the Secretary for Economic Services (Mr D.G. JEAFFRESON), the Chairman of the Mass Transit Railway Corporation (Mr N. S. THOMPSON) and the Managing Director of the Mass Transit Railway Corporation (Dr T. M. RIDLEY) will attend before the Council for the discussion of this item).

2nd May 1979 (CR 1/4913/79)

COUNCIL CHAMBER

CONFIDENTIAL **

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