WEDNESDAY, AUGUST 10, 1977
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HE CITED THE DIFFICULTIES OF THE HONG KONG TELEPHONE COMPANY IN 1974, AND ASKED WHO WOULD RESCUE THE GOVERNMENT FROM BANKRUPTCY SHOULD IT FIND ITSELF IN A SIMILAR SITUATION AS THE COMPANY.
+THIS IS MY GRAVEST CONCERN AND CAUSE OF APPREHENSION WHICH I BELIEVE, IS SHARED BY MANY OF MY UNOFFICIAL COLLEAGUES,+ HE SAID.
REFERRING TO TWO OF THE FIVE REASONS GIVEN BY THE FINANCIAL SECRETARY FOR PROCEEDING WITH THE TSUEN WAN EXTENSION NOW DR. CHUNG SAID IF THE REASONS WERE ACCEPTED, THERE WOULD BE PERPETUAL CONSTRUCTION OF THE MTR SYSTEM AND ONLY GOD KNOWS WHEN AND WHERE
IT WOULD END.+
+ IN THIS REGARD, HE ADDED, +1 AM VOICING THE VIEW OF A NUMBER OF UNOFFICIALS WHO WISH TO PUT ON RECORD THAT THESE TWO FACTORS (COMPETITIVE BIDDINGS AND BUILD-UP OF EXPERTISE) SHOULD NOT BE USED AS REASONS FOR PROCEEDING WITH THE CONSTRUCTION OF THE TSUEN WAN EXTENSION.+
THE HON. HILTON CHEONG-LEEN WELCOMED THE MTR EXTENSION TO TSUEN WAN BUT THOUGHT THAT THE GOVERNMENT'S REJECTION OF THE CORPORATION'S PROPOSAL TO INJECT AN ADDITIONAL $500 MILLION EQUITY IN THE SYSTEM MIGHT WELL BE A SHORT-SIGHTED POLICY.
+THAT IS PARTICULARLY DETRIMENTAL TO THE COMMUNITY INTEREST IF THE CORPORATION IS FORCED TO CHARGE INITIAL FARES WHICH ARE BEYOND WHAT THE TRAVELLING PUBLIC CAN AFFORD, HE SAID.
HE POINTED OUT THAT THE CORPORATION'S CASH FLOW PROJECTION SHOWED A SURPLUS OF $469 MILLION BY 1990, AND AN ACCUMULATED SURPLUS OF $2,155 MILLION WITH ALL LOANS FULLY PAID UP BY 1992.
+ IN OTHER WORDS, FOR A TOTAL EQUITY OF $1,381, CONSISTING OF $800 MILLION IN CASH AND THE REST IN LAND AND DELAYED RATES, GOVERNMENT THROUGH THE CORPORATION WILL BE OWNING BY 1992 A DEBT-FREE MASS TRANSIT RAILWAY SYSTEM PLUS A SURPLUS OF $2,155 MILLION, HE SAID.
HE ADDED THAT THIS DID NOT INCLUDE AN ESTIMATED $800 MILLION WHICH MIGHT PROBABLY BE SAVED THROUGH REF IN ING THE COSTING PROCESS, PLUS AN ADDITIONAL $600 MILLION IN PROFITS TAX BETWEEN 1990 AND 1992, BESIDES THE EXTRA PROFITS OF THE CORPORATION ARISING FROM ITS PROPERTY DEVELOPMENT OPERATIONS.
HE PREPARED A TABLE OF PROJECTED MTR FARES BY 1980 AND 1932, BASED ON THE CORPORATION'S ASSUMED RATE OF 7 PER CENT INFLATION A YEAR. WHICH SHOWED FARES RANGING FROM $1.40 TO $3.50 AND $1.60 TO $4 RESPECTIVELY.
/HE SAID
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