For information
31.3.87)
CONFIDENTIAL
XCCI (87) 183
Copy No.....
148
NOTE FOR EXECUTIVE COUNCIL
KOWLOON-CANTON RAILWAY FARES FOR 1987
Introduction
Under section 4(2) of the Kowloon-Canton Railway Corporation Ordinance (Chapter 372), the Corporation (KCRC) is empowered to determine the fares payable by its passengers. The purpose of this note is to inform Members of the decision of the KCRC Board on the fare policy for 1987.
Background
2
On 18 March 1986, Members noted memorandum XCCI(86)16, which outlined the revised passenger fares for KCR's China services and alterations in the Common Stored Value Tickets for local services. The revised fares were implemented on 1 April 1986.
3
It is the KCRC's policy to review the passenger fare structure on a regular basis and make any adjustments required by commercial criteria. These criteria include the requirement to meet operating costs, service loans, and ensure adequate reserves are accumulated for the replacement of capital assets and the future development of the Corporation. At its meeting 16 March 1987, the KCRC Board reviewed the existing fare policy and decided on the increases in fares set out in paragraphs 11 and 12 below.
KCRC's considerations
4
In reviewing its fares, the KCRC has given due consideration to market pressures from competitive transport modes. Moreover, the KCRC is aware of its role in providing an essential public service and the importance of being seen to be acting in a responsive, rational and reasonable manner.
5
The continuous population intake from the completion of private and public housing estates in the three new towns of east New Territories continues to be the major source of new ridership and hence additional revenue.
CONFIDENTIAL