SHE SAID, AS THERE WAS FAR LESS CONGESTION IN THE WATERS, *THE FERRY MODE OF TRANSPORT SHOULD BE ENCOURAGED⭑.
MISS DUNN SAID THAT SUBJECT TO APPROPRIATE AMENDMENTS TO PROVIDE FOR TENDERING AND APPEAL PROCEDURES FOR LICENSED SERVICES, SHE SUPPORTED THE BILL.
SPEAKING ALSO IN SUPPORT OF THE BILL, THE HON F.K. HU NOTED THAT PROVISION WAS MADE FOR THE INTRODUCTION OF A PROFIT CONTROL SCHEME WITH THE APPROVAL OF THE GOVERNOR-IN-COUNCIL.
CROSS-SUBSIDISATION WAS NECESSARY +AS LONG AS THE OVERALL
PROF IT IS WITHIN REASONABLE CONTROL, HE SAID.
THE HON ALEX WU WHO DECLARED HIS INTEREST AS A DIRECTOR OF ONE OF THE FERRY COMPANIES, ABSTAINED FROM VOTING BUT SAID THAT GOVERNMENT INTERVENTION IN EITHER THE MANAGEMENT OR FINANCIAL AFFAIRS OF PUBLIC TRANSPORT SHOULD NOT BE ALLOWED TO CONTINUE TO ERODE THE CONFIDENCE OR VIABILITY OF THE COMPANIES.
HE ALSO DESCRIBED THE BILL AS REPRESENTING YET ONE MORE ATTEMPT BY THE GOVERNMENT TO SORT OUT ITS RELATIONS WITH THE COMPANIES WHICH OPERATE PUBLIC SERVICES+.
DISCUSSING WHAT HE CALLED THE THEORY OF CROSS-SUBSIDISATION, HE SAID THIS ASSUMED EITHER THAT THERE WERE MORE PROFITABLE ROUTES THAN UNPROFITABLE ONES OR THAT THE FARES ON SOME ROUTES WERE SO HIGH AND PROFITABLE THAT THERE WAS A POOL OF MONEY TO FINANCE OTHER ROUTES.
+THIS, OF COURSE, IS NOT TRUE AND THE GOVERNMENT KNOWS IT,+ MR WU SAID.
A COMPANY UNDER A SCHEME OF CONTROL LIMITING ITS PROFITS COULD HARDLY EVER BE IN SUCH A POSITION AND COULD ONLY SUBSIDISE A NEW UNPROFITABLE ROUTE BY RAISING FARES ON OTHERS, HE SAID.
+ IS THAT WHAT THE GOVERNMENT INTENDS AND WOULD THE COMMISSIONER DIRECT A FRANCHISED COMPANY TO DO SO7+ HE ASKED.
MR WU ALSO SAID THAT THE WATERWAYS WERE BEING USED BY HALF A MILLION PEOPLE AND THE GOVERNMENT SHOULD ENCOURAGE THE DEVELOPMENT OF THIS TYPE OF TRANSPORT.
IN MOVING THE SECOND READING OF THE BILL, THE SECRETARY FOR TRANSPORT, THE HON ALAN SCOTT THANKED MISS DUNN AND MR HU FOR THE IR SUPPORTING SPEECHES AND SAID NEW SUBCLAUSES 28 (6) AND 28 (7) WOULD BE PROPOSED AT COMMITTEE STAGE ON THE SUGGESTIONS MADE BY UNOFFICIAL MEMBERS, TOGETHER WITH SOME OTHER AMENDMENTS TO MAKE CERTAIN CLAUSES CLEARER AND MORE PRECISE.
+ THE FIRST REQUIRES THE COMMISSIONER FOR TRANSPORT TO DEAL WITH APPLICATIONS FOR FERRY LICENCES BY WAY OF PUBLIC TENDER IN CASES WHERE TWO OR MORE PERSONS APPLY, OR ARE LIKELY TO APPLY, SEPARATELY FOR A LICENCE TO OPERATE SUBSTANTIALLY THE SAME FERRY SERVICES BETWEEN THE SAME POINTS.
/+THE SECOND