FRIDAY, OCTOBER 7, 1983
2
+WE HAVE REACHED THE SITUATION WHERE EACH INCREMENT OF INVESTMENT IN TRANSPORT WILL GIVE LESS REAL RETURN, THE END RESULT IS THAT, WITH BOTH RISING CAPITAL AND OPERATING.COSTS AND DIMINISHING PROFITABILITY, THERE HAS BEEN INCREASED PRESSURE FOR FARES TO GO UP AT A HIGHER RATE THAN IN THE PAST,+ MR LEEDS SAID.
FIGURES REVEALED THAT THE TOTAL NUMBER OF PASSENGERS CARRIED ON PUBLIC TRANSPORT INCREASED BY 97 PER CENT OVER THE PAST 20 YEARS FROM 971 MILLION IN 1962 TO 1 919 MILLION IN 1982.
THE INCREASE IN DEMAND NECESSITATED THE EXPANSION OF THE PUBLIC TRANSPORT NETWORK, AND MUCH INVESTMENT.
+BUT UNTIL RECENT YEARS FARE INCREASES WERE KEPT WELL BELOW THE RATES AT WHICH PERSONAL INCOMES AND THE CHARGES FOR OTHER SERVICES AND COMMODITIES WERE RISING, MR LEEDS SAID,
HE EXPLAINED THAT THIS WAS POSSIBLE BECAUSE THERE WERE OPPORTUNITIES FOR CONSIDERABLE SAVINGS IN OPERATING COSTS.
+IN THE IMMEDIATE POST-WAR YEARS PUBLIC TRANSPORT WAS VERY PROFITABLE, SO PROFITABLE THAT MOST OF THE OPERATORS WERE ABLE TO PAY ROYALTIES TO GOVERNMENT. THE ROYALTIES WERE WAIVED SOME YEARS AGO TO HELP PRESERVE THE LOW FARE STRUCTURE,+ MR LEEDS SAID.
IN RECENT YEARS, MUCH OF THE FAT HAS BEEN TRIMMED OFF SO THAT THERE HAS BEEN LESS OF A BUFFER TO SHIELD FARES FROM THE DIRECT EFFECTS OF INCREASED OPERATING COSTS+.
+AT THE SAME TIME THERE HAS BEEN THE INCREASING ADVERSE FACTOR OF THE LOSS OF OPERATING EFFICIENCY THROUGH WORSENING ROAD CONGESTION, MR LEEDS ADDED.
1972 TO 1982 MR LEEDS POINTED OUT THAT IN THE LAST DECADE THERE WAS AN UNPRECEDENTED MASSIVE EXPANSION IN THE PUBLIC TRANSPORT NETWORK
TWO NEW MASS TRANSIT RAILWAY LINES, WHICH NOW CARRY NEARLY 1.2 MILLION PASSENGERS A DAY. AN IMPROVED KCR SERVICE WHICH, WITH THE COMPLETION OF THE ELECTRIFICATION, IS NOW CARRYING 170 000 PASSENGERS A DAY. THE BUS COMPANIES HAVE INCREASED THEIR NUMBER OF PASSENGERS CARRIED PER DAY FROM 1.83 MILLION TO 3.5 MILLION.
+THIS RAPID EXPANSION,+ SAID MR LEEDS, +WAS NECESSARY TO MEET INCREASING DEMAND AND ALSO TO MAKE UP SOME OF THE SHORT- COMINGS IN THE QUALITY OF THE SERVICE THAT WAS EXPERIENCED BEFOREHAND.+
HE POINTED OUT THAT THE POLICY IN HONG KONG HAS BEEN TO KEEP FARES AS LOW AS POSSIBLE WITHOUT RECOURSE TO DIRECT SUBSIDIES, SO FAR THIS HAS BEEN ACHIEVED THROUGH THE COMMERCIAL EFFICIENCY THAT REMAINS A FEATURE OF THIS TERRITORY'S FREE ENTERPRISE SYSTEM, HE SAID.
+FOR THE TIME BEING, TRANSPORT COSTS ARE, COMPARED TO THE OTHER ESSENTIALS OF LIFE, STILL RELATIVELY LOW,+ MR LEEDS SAID.
13