WEDNESDAY, JANUARY 19, 1994
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A DUAL AIM IN DETERMINING BUS FARE INCREASES
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THE GOVERNMENT WOULD NOT BE ABLE TO ACHIEVE A DUAL AIM OF ENSURING THAT BUS SERVICES MEET PUBLIC EXPECTATIONS FOR EFFICIENT AND ACCEPTABLE STANDARD OF SERVICES WITH REASONABLE FARE ON ONE HAND AND ON THE OTHER HAND ENSURING THAT FARE LEVELS ARE PITCHED AT A LEVEL THAT GIVES THE PUBLIC TRANSPORT OPERATORS A REASONABLE RETURN IF IT WERE TO PIN DOWN FARE INCREASES TO INFLATION LEVELS.
SPEAKING AT A MOTION DEBATE ON FARE INCREASE APPLICATIONS FROM KMB AND CMB, THE SECRETARY FOR TRANSPORT, MR HAIDER BARMA, SAID, IT WOULD BE FOOLHARDY TO ADHERE TO SUCH A SACROSANCT DOCTRINE BECAUSE THIS MAY BE A VERY TEMPTING SHORT-TERM PALLIATIVE BUT, IN THE LONG RUN, COULD SERIOUSLY UNDERMINE THE PROVISION OF BUS SERVICES.
MR BARMA SAID THE GOVERNMENT SUPPORTED MRS MIRIAM LAU'S AMENDED MOTION WHICH RECOGNISED THE DILEMMA, BUT WOULD CONTINUE TO VET APPLICATIONS FOR FARE INCREASES METICULOUSLY.
HE SAID THE FOLLOWING CRITERIA WOULD BE TAKEN INTO ACCOUNT IN CONSIDERING AND PROCESSING APPLICATIONS FOR FARE INCREASES:
(A)
(B)
(C)
(D)
THE INCREASE IN OPERATING COSTS SINCE THE LAST FARE
ADJUSTMENT;
EFFORTS MADE TO REDUCE COSTS AND INCREASE REVENUE E.G. ECONOMY MEASURES AND EFFORTS TO INCREASE NON-FAREBOX REVENUE SUCH AS ADVERTISING;
THE QUANTITY AND QUALITY OF SERVICE PROVIDED HAVING REGARD TO PASSENGER DEMAND AND FEEDBACK;
FUTURE DEVELOPMENT PLANS AND SERVICE IMPROVEMENT PROGRAMME;
(E) FORECAST OF FUTURE COSTS, REVENUE AND RETURN;
(F)
(G)
PUBLIC AFFORDABILITY AND ACCEPTABILITY INCLUDING IMPACT ON LIVELIHOOD; AND
ELDERLY CONCESSIONARY FARES.
"IN ADDITION INFLATION IS A KEY ELEMENT THAT IS ALL- ENCOMPASSING, HE ADDED.
MR BARMA SAID: "BUS OPERATIONS ARE LABOUR INTENSIVE AND LABOUR COSTS ALONE CONSTITUTE ABOUT 60% OF THE OPERATING EXPENSES.
"SALARIES HAVE RISEN HIGHER THAN INFLATION. OVER THE PAST 10 YEARS, THE NOMINAL WAGE INDEX HAS INCREASED BY AN AVERAGE 9.7% PER ANNUM COMPARED WITH THE AVERAGE ANNUAL INCREASE OF 7.6% IN CONSUMER PRICE INDEX.
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