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5 -
Wednesday, June 7, 1972
FARE INCREASE FOR C.M.B. "INEVITABLE"
If It Is To Remain Viable Mr. Szeto Wai
The Hon. Szeto Wai said today that an increase in fares for the
China Motor Bus Company (CMB) was "inevitable" if the company was to
remain viable which a public transport undertaking must.
He said that CMB, being a labour-intensive transport industry,
could not escape the considerable stress resulting from increasing wages
and costs, and had now reached its ultimate strain.
He was speaking in the Legislative Council on the notion that
no royalty shall be paid by the China Motor Bus Company for the yearly
period beginning on July 1, 1971, and ending on June 30, 1972.
Mr. Szeto said that in order to save the Company from its
deteriorating financial position and to make public transport operation
viable, the Transport Advisory Committee endorsed the proposal of fare
revision after careful study.
The Committee's endorsement, he said, was made on the condition
that the level of royalty be considered in the light of the accuracy of
the Company's profit and loss forecasts when compared with its audited
accounts for each year in question.
"In other words, royalty should be retained as a regulator in the
event of excessive profits," he said.
/As regards