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WEDNESDAY, FEBRUARY 7,

1990

WERE ON DECEMBER 7 LAST YEAR, THE TAC IN CONSIDERING THE KMB 1990-94 FIVE YEAR RDP TOOK THE VIEW THAT THE SUB-GROUP'S RECOMMENDATIONS STILL VALID AND SHOULD BE IMPLEMENTED.

SINCE THAT TAC APPRECIATED THE CO-OPERATED WITH THE TRANSPORT DEPARTMENT IN THE ABOVE MEASURES.

FACT

KMB HAD THE MEETING, EFFECTING PROGRESSIVELY

TAC NOTED FOR A

IN CONSIDERING KMB'S FARE INCREASE APPLICATION, THE

CALL RECENT MEMBERS' AND WELCOMED THE COMPANY'S RESPONSE TO TRIMMING OF BUS DEPOTS AND LOSS MAKING ROUTES IN ORDER TO OPERATING COSTS OF THE COMPANY AND CONTROL THE EXPANSION OF ITS BASE.

IN THAT

1989,

REDUCE THE ASSET

PATRONAGE KMB'S

HAD

MONTHS COMPARED TRIPS DUE LOST TRIPS OF ROUTES FROM

NOTED FURTHER THE TAC DROPPED BY MORE THAN 10 PER CENT DURING THE FIRST 10 WITH THE PREVIOUS YEAR DUE TO SEVERAL FACTORS SUCH AS LOST

CAUSING ADDITIONAL TO DRIVER SHORTAGE; ROAD CONGESTION, AND PASSENGER DIVERSION TO RAIL MODE; AND WITHDRAWAL THE LIGHT RAIL TRANSIT SERVICE AREA.

JANUARY REVISION IN WHEN THE TAC CONSIDERED KMB'S FARE YEAR,

MEMBERS NOTED A SHORTFALL IN PERMITTED RETURN WAS PREDICTED

INCREASE WOULD THE YEAR ENDING DECEMBER 1989, AND THAT A FURTHER NECESSARY IN EARLY 1990.

LAST

FOR

BE

BY 20 PARTS

OF COST OPERATING COSTS OF KMB IN 1990 ARE FORECAST TO INCREASE PER CENT OVER 1989 DUE TO ANTICIPATED RISE IN AND FUEL, AS WELL AS SERVICE IMPROVEMENTS.

THAT AT EXISTING

WAGES,

FARES, KMB

EXPECTED MEMBERS NOTED OPERATING DEFICIT OF $10.3 MILLION IN 1990 AND $253.4 MILLION IN AFTER TAXATION, NOT COUNTING THE PERMITTED RETURN ON INVESTMENT.

AN

1991

THE RECOMMENDATIONS OF THE TAC ON BUS FARE PUT TO THE GOVERNOR IN COUNCIL IN DUE COURSE.

INCREASES

WILL BE

MEMBERS ALSO NOTED THAT THE TRANSPORT DEPARTMENT HAD STRUCTURE FARE CMB'S WHETHER EXAMINE ANOTHER REVIEW TO FURTHER RATIONALISED.

COMPLETED COULD BE

THIS IS THE THIRD RESTRUCTURING EXERCISE DEPARTMENT IN AS MANY YEARS.

BY OUT CARRIED

THE

ITS LATEST FINDINGS RE-AFFIRM CMB'S FARE STRUCTURE AND TO ADJUST THE FARES OF SOUTHERN THUS MAKING THEM MORE EQUITABLE WITH THOSE OF NORTH-SHORE ROUTES.

WITH

WHILE THE FARE SCALE PROPOSED BY CMB IS IN

RECOMMENDATIONS, THE SPIRIT OF THE REVIEW'S DEPARTMENT HAS ALSO PROPOSED A FARE STRUCTURE THAT IS

THE FARE DIFFERENTIAL IN NARROWING DOWN NORTH-SHORE ROUTES.

THE NEED TO

FURTHER SIMPLIFY BUS ROUTES,

GENERAL CONFORMITY THE TRANSPORT MORE EFFECTIVE

SOUTHERN BETWEEN

AND

/UNDER THE

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