WEDNESDAY, SEPTEMBER 16, 1981
KCR TO BECOME PUBLIC CORPORATION
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THE GOVERNMENT HAS DECIDED IN PRINCIPLE TO CHANGE THE STATUS OF THE KOWLOON-CANTON RAILWAY FROM A GOVERNMENT DEPARTMENT TO A PUBLIC CORPORATION.
A GOVERNMENT SPOKESMAN SAID TODAY THAT THE DECISION WAS TAKEN IN VIEW OF THE MAJOR DEVELOPMENT OF THE KCR INTO A MUCH-EXPANDED AND MORE SOPHISTICATED RAILWAY.
+FOLLOWING THE COMPLETION OF THE CURRENT $3 500 MILLION MODERNISATION AND ELECTRIFICATION PROGRAMME AT THE END OF 1982,+ THE SPOKESMAN SAID, THE KCR WILL PROVIDE FAST AND FREQUENT SERVICES WHICH WILL INCREASE ITS PASSENGER CAPACITY TENFOLD AND ITS FREIGHT CAPACITY THREE TIMES.+
+A STRENGTHENED MANAGEMENT STRUCTURE IS THEREFORE REQUIRED TO MEET BOTH THE OPERATIONAL AND COMMERCIAL NEEDS OF THE NEW RAILWAY, HE ADDED.
THE SPOKESMAN SAID THE MAIN ADVANTAGE OF A MANAGEMENT ORGANISATION SEPARATE FROM THE GOVERNMENT WAS THAT IT COULD FUNCTION ON A FULLY COMMERCIAL BASIS.
+PROPER WEIGHT COULD THEN BE GIVEN TO LAND USE, MARKETING, ADVERTISING AND OTHER MATTERS OF COMMERCIAL DEVELOPMENT,+ HE ADDED.
AN INDEPENDENT BODY WOULD HAVE MORE FLEXIBILITY IN DETERMINING FARES AND FREIGHT CHARGES AND IN TAKING WHATEVER DECISIONS THAT WERE NECESSARY TO MEET ITS BUDGETS.
+THE NEED TO ADHERE TO THE GOVERNMENT'S PERSONNEL, FINANCIAL AND MANAGEMENT PROCEDURES WOULD BE OBVIATED AND THE FUNDING OF ANY FUTURE DEVELOPMENT WOULD NO LONGER NEED TO BE VIA THE PUBLIC WORKS PROGRAMME,+ THE SPOKESMAN SAID.
DETAILS OF HOW THE KCR'S CHANGE TO A PUBLIC CORPORATION WILL BE EFFECTED HAVE YET TO BE WORKED OUT AND A SENIOR GOVERNMENT OFFICER, MR H.G. ARDLEY, HAS BEEN ASSIGNED THE TASK OF CARRYING OUT A DÉTAILED STUDY OF WHAT IS REQUIRED.
AS A FIRST STEP, THE SPOKESMAN EXPLAINED, A PROVISIONAL AUTHORITY WOULD BE SET UP EARLY NEXT YEAR, PROBABLY ALONG SIMILAR LINES TO THE FORMER MASS TRANSIT RAILWAY PROVISIONAL AUTHORITY, TO CARRY THE KCR FORWARD UNTIL ALL THE NECESSARY ARRANGEMENTS TO CREATE THE CORPORATION HAD BEEN MADE.
THE SPOKESMAN SAID THE CORPORATION WOULD COME INTO BEING AS SOON AS POSSIBLE AND NOT LATER THAN THE BEGINNING OF 1983 WHEN FULL ELECTRIFIED SERVICES WOULD BE INTRODUCED.
KCR STAFF ASSOCIATIONS HAVE BEEN INFORMED.
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