WEDNESDAY, JUNE 22, 1994
THIS MTRC
THE
BECAUSE THIS SUBJECT HAS BEEN DEBATED SEVERAL TIMES, INVARIABLY HAVE A MANY OF THE ARGUMENTS AND COUNTER-ARGUMENTS ADVANCED TODAY MAY
DURING THE LAST MOTION DEBATE ON RING OF FAMILIARITY AROUND THEM.
SUBJECT I EXPLAINED AT LENGTH WHY WE MUST CONTINUE TO ALLOW
WITH THEIR FARES IN KEEPING TO DETERMINE
PRUDENT COMMERCIAL WHICH PRINCIPLES. MAY I REFER MEMBERS TO MY RESPONSE OF 12 JANUARY IS CONTAINED IN THE HANSARD RECORDS. RATHER THAN REITERATE ALL THESE
A ARGUMENTS, LET ME
FROM TO FOCUS ON THIS TRY DIFFERENT PERSPECTIVE.
IN
SUBJECT
SLIGHTLY
FINANCIAL BROAD TERMS, IN MEETING THE CORPORATION'S UNTIL THE END OF THE CENTURY, REVENUE FROM FARES IS ESSENTIAL TO THREE BASIC COMPONENTS OF EXPENDITURE:
PLANS MEET
(A)
ANNUAL OPERATING COSTS;
(B)
SERVICE IMPROVEMENTS AND ASSET REPLACEMENT IN THE EXISTING SYSTEM; AND
(C)
INTEREST PAYMENTS AND REPAYMENT OF OUTSTANDING DEBTS.
MY
DEALT WITH COLLEAGUE, THE SECRETARY FOR THE TREASURY, HAS ASPECTS
ΤΟ MTRC'S PERTAINING
EQUITY AND
AND LONG- TERM DEBTS
INVESTMENT
THE I SHALL THEREFORE ELABORATE ON EXPANSION PROGRAMMES. TWO OTHER ASPECTS I HAVE OUTLINED.
RELATED
EXPENSES, OPERATING COSTS INCLUDE STAFF SALARIES AND
AND OTHER MAINTENANCE, ELECTRICITY CHARGES AND RATES, REPAIRS AND ADMINISTRATIVE OVERHEADS. THESE ARE UNAVOIDABLE COSTS WHICH HAVE TO MAKE EVERY EFFORT TO BE INCURRED BUT THE CORPORATION WILL CONTINUE TO ACHIEVE
CHOPPER SAVINGS. FOR EXAMPLE, THE RECENT INTRODUCTION OF A CONTROL SYSTEM ON THE MTR HAS ENABLED TRACTION ENERGY TO BE SAVED AS MUCH AS 50%.
BY
AS
REGARDS
IMPROVEMENTS, SERVICE
THE
CORPORATION
WILL
BE
$830 NOISF REDUCTION SYSTEM
SYSTEM,
AND
SPENDING $8 BILLION ON SERVICE IMPROVEMENTS OVER THE NEXT SEVEN YEARS. THE PROGRAMME INCLUDES OVER $5 BILLION ON IMPROVING THE FREQUENCY OF
SERVICES, TRAIN
AIR-CONDITIONING AND COMMUNICATIONS
AS IMPROVEMENTS SUCH MILLION ON ENVIRONMENTAL
SOME MEASURES,
STATION FACILITIES $700 MILLION ON MANAGEMENT AND A SIMILAR AMOUNT ON ASSET REPAIRS AND REPLACEMENT. THESE MEASURES ENHANCE THE EFFICIENCY OF THE SERVICE AND WILL COMMUTERS.
ALL
BENEFIT
A DETAILED ADVISORY
OPERATING EXPENSES REVENUE FROM FARES ARE ESSENTIAL TO COVER
MR LAU CHIN SHEK HAS ASKED THE AND THE PLANNED SERVICE IMPROVEMENTS.
THIS. I MTRC TO EXPLAIN ITS FINANCIAL PLANS AND POLICIES TO ACHIEVE WHOLE-HEARTEDLY SUPPORT THIS.
FULLY RECOGNISE AND THE MTRC ALSO
BE OPEN AND ACCEPT THAT BEING A PUBLIC CORPORATION, THEY HAVE TO ACCOUNTABLE. THEY CONTINUE TO EXPLORE WAYS AND MEANS TO ENHANCE THIS. IN THE 1994 FARE INCREASE EXERCISE, THE CORPORATION MADE PRESENTATION TO THE LEGCO TRANSPORT PANEL AND THE TRANSPORT COMMITTEE (TAC) IN FEBRUARY EXPLAINING THE BACKGROUND FOR ITS FINANCIAL STRATEGY AND FARE POLICY. PASSENGER SURVEY AND FEEDBACK FROM PASSENGER LIAISON GROUPS CONCERNING FARES WERE
VIEWS OF THE PRESENTED. AND THE CORPORATION TOOK INTO ACCOUNT THE
PASSENGER LEGCO TRANSPORT PANEL, TAC AND RESULTS FROM SURVEYS BEFORE FINALISING ITS PROPOSALS FOR ITS FARE INCREASE.
AND RATIONALE RESULTS ALSO
INDEPENDENT
/THE MTRC'S