11
THURSDAY, FEBRUARY 28, 1991
THE ADMINISTRATION HAD ALSO TAKEN A CRITICAL LOOK AT CMB AND KMB'S ASSUMPTIONS ABOUT THE LIKELY MOVEMENT OF FUEL PRICES OVER THE NEXT NINE TO 12 MONTHS, ON THE BASIS OF THE TERMS OF THEIR SUPPLY CONTRACTS WITH OIL COMPANIES AND THE BEST FORECASTS NOW AVAILABLE ΤΟ THE ECONOMIC SERVICES BRANCH ABOUT PRESENT AND FUTURE OIL SUPPLY AND DEMAND CONDITIONS IN THE INTERNATIONAL MARKET, INCLUDING THE LATEST DEVELOPMENT OF THE GULF WAR.
THE TAC NOTED THAT WITH ANTICIPATED RISES IN STAFF SALARIES, COST OF SPARE PARTS AND ADJUSTMENTS TO FUEL COSTS, INTEREST AND EXCHANGE RATES, KMB WOULD HAVE A SHORTFALL EN PERMITTED RETURN OF MORE THAN $330 MILLION IN 1991 IF FARES REMAIN UNCHANGED.
MEMBERS WERE TOLD THAT KMB NEEDED A FARE RISE TO MAINTAIN AND IMPROVE ITS SERVICES. THE COMMITTEE OBSERVED THAT KMB HAD PLANNED ΤΟ INTRODUCE 15 NEW BUS ROUTES IN 1991 AND 1992, DEPLOY AIR-CONDITIONED BUSES ON SOME 30 BUS ROUTES INCLUDING THE CROSS-HARBOUR SERVICES, AND AUGMENT SERVICE FREQUENCIES ON NO LESS THAN 50 BUS ROUTES IN RESPONSE TO PUBLIC DEMANDS VOICED THROUGH THE DISTRICT BOARDS,
TAC ALSO NOTED THAT, IN ITS LATEST FORWARD PLANNING PROGRAMME (1991-1995), KMB HAD, ACCORDING TO THE ADMINISTRATION'S ADVICE, PROPOSED
FULL PACKAGE OF COST ECONOMY MEASURES, INCLUDING RATIONALISATION OF LOSS-MAKING OR POORLY UTILISED SERVICES, MODEST FLEET EXPANSION AND MINIMAL DEPOT DEVELOPMENT.
A
+
CONCURRENT WITH THE IMPLEMENTATION OF THE NEW FARES, KMB PROPOSED TO OFFER HALF FARE FOR CHILDREN ON AIRBUS, EXPRESS, AIR-CONDITIONED AND CROSS-HARBOUR SERVICES; SECTION FARE ON SELECTED ROUTES TO ESTATES IN EAST KOWLOON AS WELL AS ON EXPRESS ROUTES. THESE PROPOSALS WERE SUPPORTED BY THE TAC.
WHEN CONSIDERING CMB'S FARE INCREASE, TAC MEMBERS NOTED THAT THE INCREASE SOUGHT COULD HAVE BEEN LOWERED BY A FEW PERCENTAGE POINTS IF IT HAD NOT BEEN FOR THE NEED ΤΟ PROVIDE AN ADDITIONAL PENSION PROVISION OF $13 MILLION IN ITS ACCOUNTS. HOWEVER, THE TAC AGREED THAT SUCH PROVISION SHOULD BE INCLUDED.
DUE
MEMBERS NOTED THAT CMB'S RIDERSHIP FIGURE, AND HENCE FAREBOX REVENUE, WAS EXPECTED TO REMAIN VIRTUALLY STATIC IN 1991 AND 1992 TO THE LIMITED SCOPE FOR SERVICE EXPANSION ON HONG KONG ISLAND.
THE TAL WAS ALSO TOLD THAT SINCE CMB'S LEVEL OF FUEL CONSUMPTION WAS MUCH LOWER THAN THAT OF KMB'S, THE COMMERCIAL DISCOUNTS WHICH CMB OBTAINED FROM ITS FUEL SUPPLIERS WERE LESS FAVOURABLE THAN THOSE OFFERED TO KMB.
PART
FARE
COSTS, SETTING ASIDE THE IMPACT OF RISING
THE OF RISE SOUGHT BY CMB WAS NEEDED TO IMPLEMENT SERVICE IMPROVEMENT PROPOSALS IN THE FIVE-YEAR PLAN.
ON
THE TAC OBSERVED THAT UMR HAD PLANNED TO INTRODUCE SIX NEW BUS ROUTES IN 1991 AND 1992, DEPLOY AIR-CONDITIONED BUSES SIX ROUTES, AND ENHANCE SERVICE FREQUENCIES FOR 10 BUS ROUTES.
/MEMBERS ALSO