FRIDAY, APRIL 10, 1981
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THE SPOKESMAN SAID THE SCALE OF THE INCREASE REQUIRED BY CMB WAS LESS THAN THAT REQUIRED FOR KMB, PARTLY BECAUSE THE BASIC CMB FARES WERE ALREADY HIGHER THAN THE CORRESPONDING KMB FARES ON A PER KILOMETRE BASIS. HE POINTED OUT THAT, UNTIL 1980, KMB HAD MAINTAINED THE SAME FARE SCALE ON NON-CROSS HARBOUR SERVICES SINCE 1971 IN THE CASE OF URBAN ROUTES AND SINCE 1973 IN THE CASE OF NEW TERRITORIES ROUTES.
→THE LARGE INCREASE IN OPERATING COSTS IN THE CASE OF KMB WAS ALSO AFFECTED BY THE RAPID EXPANSION OF THE COMPANY'S OPERATIONS, INCLUDING THE PROVISION OF NEW ROUTES TO NEW TOWNS AND OTHER DEVELOPING AREAS IN THE NEW TERRITOR IES AND NEW KOWLOON. SOME OF THESE ROUTES, UNTIL THEY ARE WELL ESTABLISHED, DO NOT COVER THE IR OWN COSTS, HE ADDED.
+NEVERTHELESS, BECAUSE OF THE SIZE OF THE FARE INCREASE PROPOSED BY KMB, IT WAS NECESSARY TO CONSIDER THIS APPLICATION CAREFULLY AND IN MORE DETAIL, THE SPOKESMAN SAID.
BECAUSE OF THIS, THE TAC DID NOT MAKE FIRM AND FINAL RECOMMENDATIONS ON KMB'S FULL APPLICATION, BUT ADVISED THAT AN INTER IM FARE INCREASE SHOULD BE APPROVED TO ENABLE THE COMPANY TO BREAK EVEN IN 1981.
+THIS WILL RESULT IN A HIGHER LEVEL OF INCREASE NEXT TIME, ALTHOUGH IT IS HOPED THAT THE REVIEW WILL ENABLE THIS TO BE AS LOW AS IS REASONABLY POSSIBLE, THE SPOKESMAN POINTED OUT.
IN THE REVIEW OF THE MEMORANDA OF UNDERSTANDING, ATTENTION WILL BE PAID TO THE SPARE PARTS STOCK LEVELS, DEPOT REQUIREMENTS, THE MAINTENANCE PROGRAMMES AND THE PROCEDURES FOR EXAMINING BUSES. THE ROUTE DEVELOPMENT PROGRAMMES, WHICH ARE ROLLED FORWARD EVERY YEAR, WILL ALSO BE REVIEWED WITH BOTH BUS COMPANIES.
THE REVIEW OF THE PROF IT CONTROL SCHEMES WILL INCLUDE A STUDY OF SOURCES OF INCOME CURRENTLY EXCLUDED FROM THE SCHEME, AND THE POSITION OF THE TYLEELORD COMPANY.
+ THE GOVERNMENT VIEWS THESE STUDIES URGENTLY, AND EVERY EFFORT WILL BE MADE TO COMPLETE THEM AS SOON AS PRACTICABLE,+ HE CONCLUDED.
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