!
WEDNESDAY, MARCH 13, 1991
1
REASONABLE
FOR COMMUTERS WHO
M
HE SAID.
WILL BE MAINTAINED 'A
CHOICE PREFER TO USE NON-AIR-CONDITIONED BUSES,
AT
ONLY ΤΟ
THE SCHEME OF CONTROL AGREEMENT APPLIED PRESENT, CHINA MOTOR BUS COMPANY (CMB) AND KOWLOON MOTOR BUS COMPANY (KMB).
THERE WAS NO SUCH AGREEMENT FOR THE NEW LANTAO BUS COMPANY
SCALE OF OPERATIONS BECAUSE THEIR THE TWO
COMPANIES, FERRY SUBSTANTIALLY SMALLER THAN THAT OF CMB AND KMB .
THE SCHEME LINKED THE LEVEL OF PROFITS PERMITTED IN YEAR TO A GIVEN PERCENTAGE OF THEIR FIXED ASSETS.
OR
WAS
ANY ONE
FINANCIAL STABILITY THEY IT ALSO ENSURED THAT
LONG-TERM TO GIVE THE DESIGNED IT WAS NEEDED TO ENCOURAGE CONTINUED INVESTMENTS. DID NOT MAKE EXCESSIVE PROFITS.
THE UNDER
LIMIT ON THE ANY EXCESS QUARANTEED
SCHEME, THE PERMITTED RETURN SET A MAXIMUM AMOUNT OF PROFITS WHICH KMB AND CMB MIGHT OBTAIN.
IT WAS NOT INTENDED TO SET A WENT TO A DEVELOPMENT FUND. RATE OF RETURN.
MR LEUNG SAID UNDER EXISTING POLICY, FARES FOR PUBLIC TRANSPORT COMPANIES SERVICES WERE NORMALLY SET AT LEVELS SUFFICIENT TO GIVE THE
TO A CONCERNED A
RETURN ON THEIR INVESTMENTS, REASONABLE PROPER AND EFFICIENT SERVICE BEING MAINTAINED.
SUBJECT
A DEGREE OF STABILITY IN THE RATE OF RETURN SERVED TO ENCOURAGE CONTINUED INVESTMENTS.
SHORTFALL
IN
PERMITTED
HE SAID: "THIS DOES NOT MEAN THAT A
FARE RETURN IN ANY ONE YEAR WOULD BE A SUFFICIENT REASON FOR RAISING FARES.
EXCEPTIONALLY, A THERE WERE INDEED CASES IN THE PAST WHERE,
BY THE COMPANY WAS INCREASE
APPROVED BY THE GOVERNMENT AND AGREED
ENABLE THE CONCERNED IN THE KNOWLEDGE THAT THE NEW FARES MIGHT NOT COMPANY TO EARN ITS FULL PERMITTED RETURN.
ONE
"HOWEVER,
TO REDUCE ARBITRARILY THE PERMITTED RETURN PUBLIC TILITY MAY AFFECT OVERALL INVESTOR CONFIDENCE
UTILITIES.
FOR ANY IN PUBLIC
"THIS
COURSE OF ACTION SHOULD NOT BE PURSUED WITHOUT THE
MR LEUNG SAID. CAREFUL CONSIDERATION AND CONSULTATION,
MOST
CMB,
MR
ON
THE CURRENT RATES OF PERMITTED RETURN FOR KMB AND LEUNG SAID THE TWO COMPANIES' RATE OF RETURN WAS NOT UNREASONABLE WHEN COMPARED WITH OTHER PRIVATE ENTERPRISES.
RETURN, SOME
PARTICULARLY SO AS IN CALCULATING THEIR RATE OF ASPECTS WERE BASED ON THE HISTORICAL VALUE OF THEIR FIXED ASSETS.
LAI CHI KOK HE (ITED AS AN EXAMPLE THAT THE LAND FOR KMR'S
1959 VALUE OF THE IN
ACCOUNT BOOKS AT ITS APPEARED DEPOT MILLION, OR $23.4 PER SQUARE FOOT, WHICH IS SIGNIFICANTLY LOWER CURRENT DAY LAND VALUES.
$3.28
THAN
/HE STRESSED