THURSDAY, JULY 30, 1981
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NEW TELEPHONE CHARGES APPROVED
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THE LEGISLATIVE COUNCIL TODAY (THURSDAY) APPROVED AN AMENDMENT TO THE SCHEDULE TO THE TELEPHONE ORDINANCE WHICH ALLOWS THE HONG KONG TELEPHONE COMPANY TO INCREASE CHARGES IN LINE RENTALS.
IN MOVING THE AMENDMENT, THE SECRETARY FOR ECONOMIC SERVICES, THE HON P. JACOBS SAID IT WAS PROPOSED THAT NEW RENTALS FOR RESIDENTIAL LINES AND BUSINESS LINES, AND FOR LEASED CIRCUITS AND EXTERNAL EXTENSIONS SHOULD TAKE EFFECT ON SEPTEMBER 1, 1981.
HE SAID THE PRESENT RENTAL CHARGES HAD BEEN HELD CONSTANT FOR THREE YEARS, BUT INCREASES WERE NOW UNAVOIDABLE BECAUSE OF INCREASES IN THE COMPANY'S COSTS DURING THE PERIOD.
INCREASES IN RENTALS FOR PRIVATE PAYPHONES MAINTENANCE CHARGES FOR PRIVATE AUTOMATIC BRANCH EXCHANGES (PABX), AND VARIOUS INCREASED INSTALLATION AND REMOVAL CHARGES WOULD TAKE EFFECT ON JANUARY 1, 1982.
THE INCREASES WOULD ONLY ALLOW THE COMPANY TO RECOVER THE COSTS OF PROVIDING THE SERVICES AND AVOID CROSS-SUBSIDISATION FROM OTHER SERVICES, MR JACOBS SAID.
HE SAID THE COUNCIL HAD BEEN ALERTED ON MARCH 11, 1981, WHEN IT RESOLVED TO AMEND THE SCHEDULE IN ORDER TO INCREASE A NUMBER OF THE TELEPHONE COMPANY'S CHARGES, THAT INCREASES IN LINE RENTALS AND RELATED CHARGES MIGHT BE NECESSARY IN LATE 1981 OR EARLY 1982.
THE PROPOSED INCREASES IN CHARGES WHICH THE COUNCIL APPROVED TODAY WERE SUBMITTED BY THE COMPANY IN EARLY JUNE.
MR JACOBS SAID THE COMPANY HAD ALSO APPLIED TO RAISE THE CHARGE FOR THE USE OF A PUBLIC PAYPHONE FROM 50 CENTS TO $1 A CALL.
+ALTHOUGH DISALLOWED, THERE IS NO DOUBT THAT AS THE PROVISION OF SERVICE IS UNECONOMIC AT 50 CENTS A CALL AND AS AN INCREASE OF LESS THAN 50 CENTS IS IMPRACTICABLE BECAUSE OF THE COSTS INVOLVED IN MODIFYING PAYPHONE MECHANISMS TO ACCEPT A SECOND COIN, IT IS LIKELY THAT THE PRESENT CHARGE WILL NEED TO BE RAISED WHEN TELEPHONE TARIFFS ARE NEXT REVIEWED,
HE SAID.
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