WEDNESDAY, APRIL 23, 1975
UNOFFICIALS COMMENT ON MTR SYSTEM
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THE SENIOR UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL DR. THE HON. CHUNG SZE-YUEN, TODAY REAFFIRMED HIS SUPPORT FOR BUILDING THE MASS TRANSIT RAILWAY SYSTEM BUT EXPRESSED RESERVATIONS ON THE GOVERNMENT'S OPTIMISM ABOUT THE TIMING AND COST OF THE PROJECT.
+1 CANNOT REALLY BELIEVE THAT THE GOVERNMENT COULD BE IN A POSITION TO CONFIRM THE FINANCIAL VIABILITY OF THE MODIFIED INITIAL SYSTEM AND TO LET THE FIRST CONTRACTS IN AUGUST THIS YEAR,+ HE SAID.
DR. CHUNG WAS SPEAKING DURING THE RESUMED DEBATE ON THE MASS TRANSIT RAILWAY CORPORATION BILL WHICH PROVIDES FOR THE ESTABLISHMENT OF THE MTR CORPORATION TO BUILD AND RUN THE RAILWAY.
THE HON. LO TAK-SHING ALSO SPOKE ON THE BILL AND GAVE NOTICE THAT HE WOULD BE VOTING AGAINST IT.
IN DR. CHUNG'S OPINION, THE COST OF THE MODIFIED INITIAL SYSTEM WOULD MORE LIKELY AMOUNT TO ABOUT $6,000 MILLION INSTEAD OF THE GOVERNMENT'S ESTIMATE OF $4,900 MILLION +UNLESS THERE ARE DETERIORATIONS IN PERFORMANCE SPECIFICATIONS.+
HE POINTED OUT THAT PRICES OF MOST OF THE DIFFICULT AND UNCERTAIN CIVIL ENGINEERING CONTRACTS THAT ARE SCHEDULED TO BE CALLED IN AUGUST OR SEPTEMBER THIS YEAR WOULD NOT BE KNOWN UNTIL THE END OF THE YEAR OR EARLY NEXT, AND HE PRESUMED THAT THE PRICES FOR ELECTRICAL AND MECHANICAL CONTRACTS WOULD NOT BE AVAILABLE UNTIL THE MIDDLE OF 1976.
HE ALSO NOTED THAT THE ESTIMATED TOTAL COST OF $2,577 MILLION, AT MID-1972 PRICES, FOR THE FIRST FOUR STAGES OF THE ORIGINAL INITIAL SYSTEM HAD ESCALATED TO SUCH AN EXTENT THAT THE JAPANESE CONSORTIUM HAD BACKED OUT, EVEN AFTER SIGNING A LETTER OF INTENT, FROM A FIXED CONTRACT PRICE OF $5,000 MILLION.
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+TODAY I DON'T THINK ANY REPUTABLE CONSORTIUM WOULD DARE TO QUOTE A PRICE LESS THAN $7,500 MILLION FOR THE SAME INITIAL SYSTEM,+ HE ADDED.
+1 THEREFORE CONSIDER THAT GOVERNMENT IS OVER-OPTIMISTIC ON THE FINANCIAL VIABILITY OF THE NEW S-SYSTEM,+ HE SAID.
DR. CHUNG RE-ITERATED HIS BELIEF THAT THERE WAS A NEED FOR AN UNDERGROUND RAILWAY SYSTEM IN ORDER TO ENCOURAGE PEOPLE TO SHIFT THEIR HOMES TO NEARBY SUBURBAN AREAS AND SO EASE THE EXTREME CONGESTION IN THE MAIN URBAN DISTRICTS.
AT THE SAME TIME