14

Wednesday, March 29, 1972

In building up the public transport system, the addition of an

underground mass transit railway would undoubtedly be beneficial, but it

would cater for only one third of public passenger journeys that were expected

to be made in the design year 1986.

"I think it is important that everyone in Hong Kong should realise

that a mass transit railway would not itself constitute a solution to our

transport problems," he said.

An underground mass transit railway could play an important role

in the public transport system as a whole, he said.

"What is difficult is to decide first, whether our transport needs

outweigh other calls upon our resources to such an extent that a substantial sum

of public money should be committee to assist in the financing of this project

rather than many others?

Interest Rate

"If so, secondly, can it be constructed without undue disruption?

"Thirdly, can the outside capital finance be obtained on appropriate

terms as regards the interest rate and the repayment arrangements which, for

this project, would require an unusually long grace period?

"Fourthly, can the system be operated in such a way as to generate

a sufficient cash flow to service the investment and cover operating costs?

"If not, fifthly, should the system be subsidised from public funde,

that is to say, should our transport needs take precedence over other social

improvements," he pointed out.

/On the financial

Share This Page