are inextricably tied up in the fare increases which CMB is seeking. The provision of adequate depot space also poses a particularly difficult problem on Hong Kong Island, where appropriate areas of land are far from easy to obtain. Depot space is required for the overnight parking, routine daily maintenance and cleaning of 250 buses which are now parked on-street and numbers of which are increasing as more buses are delivered. This amounts to a need for at least 125,000 square feet of land. The Secretary for the Environment has indicated to CMB that the Government will do its utmost to provide this land, both temporarily for the short term, and permanently.
23
In addition, traffic congestion is particularly pronounced on the Island, especially along the North Shore Corridor and this, coupled with increasing demand, has led to CMB's current level of services being inadequate. Again, efforts are being made by the Govern- ment to help the Company by the provision of e. g. bus-only lanes,
24
The Government has not made as much progress in negotiating a memorandum of understanding with CMB as it would wish. Nevertheless, it is considered that, now that agreement with KMB seems imminent, continued Government efforts should be directed towards reaching agree- ment with CMB along the general lines of the draft memorandum of under- standing with KMB at Annex F.
25
Although the Government is developing contingency plans to guard against a failure to reach agreement with CMB, it feels that, if negotiations were broken off now, it would be in no position to protect the public from any retaliatory action which CMB might take. Such
but action might even go as far as a complete withdrawal of services, it is more likely to take the form of a cancellation of bus orders and other actions leading to a deterioration in existing standards of service.
26
In the Government's judgement, to attempt to introduce a new bus company now to take over completely from CMB would be fraught with difficulties. However, it is proposed that discreet, but non-committal, discussions should commence with the various groups which have indicated an interest in operating new franchised routes on Hong Kong Island, viz: Hong Kong Tramways, Hongkong & Yaumati Ferry Company, the Inchcape Group, the Cross Harbour Tunnel Company (with an overseas interest. ) and the Jardine/Zung Fu Group.
27
Following the opening of these discussions, work would continue on contingency plans to franchise a new bus company to operate specific new routes from about the middle of 1980, should agreement with CMB on the memorandum of understanding not by then
CONFIDENTIAL
機密