P.M.H. 7 (REVISED) 400000!

FONG KONG

;

DAILY

INFORMATION SERVICES

INFORMATION BULLETIN

(Part II)

Wednesday, June 7, 1972

MEASURES TO RECTIFY C.M.B.'S FINANCIAL POSITION

Fare Revision And Royalty Abolition

Five measures, including a revision of fares, were announced in

the Legislative Council today to rectify the financial position of the

China Motor Bus Company to allow it to continue to operate "an adequate,

efficient and viable bus service" on Hong Kong Island.

The measures were announced by the Financial Secretary, the Hon.

C.P. Haddon-Cave, when he moved a motion that no royalty shall be paid by

the C.M.B. for the yearly period beginning on July 1, 1971 and ending on

June 30, 1972.

The measures were:

The rate of royalty payable by the company should be. set at nil for its financial year 1971/72.

Finance Committee is to be asked to approve the payment to the Company, on a once-for-all basis, of $4.329 million before tax, by way of compensation for losses arising from the regularisation of public light buses,

1

The Governor

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