as regards paragraph 7 (a)-(g) of memorandum XCC(79)86 (Annex A) to agree, subject to the Ordinance being amended to give the necessary powers, that :-
(i)
(ii)
(iii)
(iv)
(v)
(vi).
(vii)
KMB's but not CMB's franchise should roll forward from 31st August 1987. to 31st August 1989;
in the case of CMB, approval of the roll
forward of the franchise should be subject
to the Company's performance in the five areas indicated in this
memorandum;
in the case of KMB roll forward should be subject to the proviso in paragraph 11 of XCC(79)86; use should be made of powers
to impose financial penalties whenever this is justified and there is sufficiently clear evidence that a company has failed to take reasonable steps to comply with a particular condition of the franchise but steps should be taken to ensure that these penalties should not be borne by the travelling public;
{
the possibility of offering a package of new routes on Hong Kong Island should be held in abeyance until the response of CMB to the required improvements in its performance has been ascertained;
no steps should be taken to offer new routes to a new operator in Kowloon and the New Territories but the situation should be reviewed after the MTR is in operation and the negotiations on the Tuen Mun public transport system are completed; and consideration should be given to
establishing a programme of improve- ments to drivers' working conditions,
which may include limiting drivers'
working hours to an acceptable daily maximum.
(The Secretary for the Environment (Mr D, J. C. JONES), the Commissioner for Transport (Mr A. T. ARMSTRONG-WRIGHT) and the Assistant to Attorney General (Mr E, R. ASTIN) will attend before the Council for the discussion of this item).
15th September 1979 (CR 69/581/74 VI)
COUNCIL CHAMBER
CONFIDENTIAL B