In their report, the consultants concluded that CMB had in place the basic management infrastructure that was required for the purpose of operating a proper and efficient bus service as required under the Public Bus Services Ordinance. The consultants noted that CMB had a well qualified management team. The consultants further concluded that CMB had a cost-effective management structure and that CMB's organisation structure and managerial arrangements were basically sound but, as with most organisations, there was room for improvement. The consultants recommended that CMB should implement a number of changes in managerial arrangements and management information systems. The Board of Directors of CMB has considered and accepted the consultants' report and the recommendations are being implemented.
Staff Welfare
A new, improved retirement scheme for daily-rated staff was negotiated and agreed with the workers' representatives and brought into effect on 1st July, 1990.
Inland lot 5532, Tsat Tse Mui Road, and Inland Lot 7178, King's Road, North Point
Negotiations are in progress with property developers with a view to developing these two sites into office, retail and residential accommodation through joint venture arrangement.
Future Outlook
The authorisation by Government of additional residents' services during the year has led to an abstraction of passengers from the Company's bus routes. The Company strenuously objected to the commencement of these services which are detrimental to the profitability of the Company's franchised bus network. The Company through its solicitors has made written submissions to the Government setting out in detail the grounds of its objections.
Another serious problem affecting bus operations is the escalating price of diesel oil as a consequence of tension in the Middle East. This has led to sharply higher operating costs.
There is, unfortunately, no likelihood of any significant improvement in traffic flow in the near future and thus the deleterious effect that traffic congestion has on our services will continue. The slow progress of our buses along traffic- clogged thoroughfares such as King's Road, Hennessy Road, Queen's Road East and Queen's Road Central disrupts our services seriously and decreases operating efficiency.
On the positive side however, we will be introducing more air-conditioned buses into service during the coming months so that we can offer a higher quality of service to our passengers.
Appreciation
I have to record our deepest regret on the death of Mr. Jimmy Sek-fui Tse, a Board Member since 1982, who passed away suddenly on 16th August, 1990.
I wish to acknowledge Mr. Tse's valuable services to the Company and his constant interest in the Company's welfare and affairs. He made a valuable contribution to the deliberations and decisions of the Board and he will be sorely missed.
The Directors appointed by the Governor under the Public Bus Services Ordinance were the Commissioner for Transport, Mr. Gordon SIU Kwing-chue, J.P., and the Deputy Secretary for Transport (Transport Services), Mrs. Alice LAI SIU Po-chun, and her successor Mr. Eddy CHAN Yuk-tak from 27th December, 1989, and his successor Mr. LUI Hau-tuen from 7th April, 1990. On behalf of the shareholders and my fellow Directors I would like to express our appreciation of their participation in the deliberations of the Board.
In conclusion, I would like to thank our loyal staff for their dedication and hard work during a difficult year.
NGAN Shing-kwan
Hong Kong, 17th October, 1990
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Chairman
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