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SATURDAY, FEBRUARY 21, 1976
AT PRESENT, THE COMPANY HAD AN IN-SERVICE FLEET OF 525 BUSES OPERATING ON 62 ROUTES WHICH IN 1975 CARRIED AN ALL-TIME RECORD OF 215.8 MILLION PASSENGERS.
ACCORDING TO THE SPOKESMAN, A FURTHER 10 NEW ROUTES ARE PLANNED BY CMB FOR 1976 TO IMPROVE FACILITIES IN EXPAND ING AREAS SUCH AS CHAI WAN, ABERDEEN AND THE MID-LEVELS AREA OF NORTH POINT. TWO MORE CROSS-HARBOUR ROUTES WILL ALSO BE
INTRODUCED THIS YEAR.
THE COMPANY WAS GRANTED A NEW FRANCHISE IN SEPTEMBER 1975 UNDER THE PUBLIC OMNIBUS SERVICES ORDINANCE TO OPERATE ON SPECIFIED ROUTES LAID DOWN BY THE COMMISSIONER FOR TRANSPORT.
THE SPOKESMAN SAID THAT, IN ADDITION, A PROFIT CONTROL SCHEME WAS EVOLVED WHICH FIXED THE COMPANY'S ANNUAL PERMITTED RETURN AT 15 PER CENT OF THE AVERAGE NET FIXED ASSETS. ANY DIFFERENCE BETWEEN THIS PERMITTED RETURN AND THE NET REVENUE AFTER TAX IS TRANSFERRED TO A DEVELOPMENT FUND. +THIS WILL ENABLE THE COMPANY TO BALANCE GOOD YEARS WITH LEAN ONES AND ENSURE PROPER LONG TERM FINANCIAL PLANNING, HE ADDED.
WITHOUT A FARES INCREASE IN MARCH, THE COMPANY'S RETURN FOR THE CURRENT FINANCIAL YEAR WOULD BE ONLY 8.7 PER CENT, THAT IS CONSIDERABLY LESS THAN THAT PERMITTED UNDER THE FRANCHISE, AND THERE IS NOTHING AS YET IN THE DEVELOPMENT FUND TO DRAW ON.
+UNDER THE NEW FARES, CMB SHOULD BE ABLE TO EARN A FAIR RATE OF RETURN AND FINANCE ITS BUS PURCHASE PROGRAMME WITHOUT EXCESSIVE LEVELS OF BORROWING,+ HE SAID. THE SPOKESMAN EMPHASISED THAT THE GOVERNMENT WILL CONTINUE TO MONITOR THE COMPANY'S FINANCIAL POSITION,
FULL DETAILS OF THE REVISED SCALE OF FARES WILL BE PUBLISHED IN THE GOVERNMENT GAZETTE NEXT WEEK AND ALL NEW ROUTES SUBSEQUENTLY INTRODUCED WILL CONFORM TO THE NEW SCALE. THE COMMISSIONER FOR TRANSPORT IS, HOWEVER, PERMITTED TO AUTHORISE UP TO A 50 PER CENT INCREASE IN FARES IN CERTAIN CIRCUMSTANCES SUCH AS ALL-NIGHT OPERATIONS, FESTIVAL DAYS AND OTHER OCCASIONS WHEN SPECIAL ARRANGEMENTS APPLY.
WHEN ASKED WHETHER THE CMB INCREASE WOULD TRIGGER OFF A SIMILAR CLAIM FROM KMB, THE GOVERNMENT SPOKESMAN REPLIED THAT THE COMPANY WAS STILL IN A HEALTHY POSITION WITH AN OPENING BALANCE IN THE DEVELOPMENT FUND. +A FARES REVISION SHOULD NOT BE NECESSARY THIS YEAR,+ HE SAID.
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