Weunesday, January 9, 1974
In tendering its advice, the Committee made it clear that it intended
to pursue with the telephone company the steps that could be taken to
enable even more funds to be generated internally for increased capital
expenditure in order to reduce the waiting list for telephones which presently
stood at about 31,000.
"The committee is also looking into the company's maintenance programme
which has tonded to be inadequate at times as the cacophony of noise interference
sometimes heard in the middle of telephone conversations bears out.
The government has taken note of this intention and has decided to
review the position when. the Advisory Committee's report on its discussion with
the Telephone Company is available," he said.
Dr. the Hon. S.Y. Chung also spoke in support of the motion. He noted
that with the increased rental charges the company should be able to do very
much in its expansion programme.
"As the company is operating under a franchise of monopoly, the
government has a responsibility to ensure that the Hong Kong community has
efficient and adequate telephone services.
"I therefore urge that the government should exert greater pressures
on the company with particular respect to the adequacy of its overall development
programme in meeting the increasing needs of Hong Kong people whether they are
residing in urban, sub-urban or rural areas," he said.
Dr. Chung said that due to "depreciation of money and appreciation
of telephone value" the company should be permitted to raise the rental
charges so as to maintain a reasonable annual return of around 10 to 11 percent
on average capital employed.
However, he felt that improvements should be made by the company in
respect of supply and demand of telephones, and the services it provided
in the New Territories and outlying islands where telephone communication
was badly needed.
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