13
WEDNESDAY, NOVEMBER 23, 1994
KOWLOON MOTOR BUS PROFIT CONTROL SCHEME
*
FOLLOWING IS A QUESTION BY THE HON LEE WING-TAT AND A REPLY BY THE SECRETARY FOR TRANSPORT, MR HAIDER BARMA, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):
QUESTION: WHEN THE KOWLOON MOTOR BUS COMPANY (KMB) RAISED ITS FARES LAST TIME, THE GOVERNMENT UNDERTOOK TO REVIEW (1) THE RELATIONSHIP BETWEEN THE INCOME ARISING FROM LAND SALES OF FRANCHISED BUS COMPANIES AND THEIR FARE ADJUSTMENTS; AND (II) THE RENEWAL OF THE FRANCHISE OF KMB UPON ITS EXPIRY IN 1997 AND THE RELATED PROFIT CONTROL SCHEME. IN THIS CONNECTION, WILL THE GOVERNMENT INFORM THIS COUNCIL :
(A) OF THE PROGRESS OF THE TWO REVIEWS MENTIONED ABOVE;
AND
(B)
WHETHER THE GOVERNMENT WILL CONSULT THE PUBLIC WIDELY ON THE FINDINGS OF THESE REVIEWS?
REPLY:
MR PRESIDENT,
IN APPROVING KMB'S FARE INCREASE IN MARCH 1994, THE GOVERNOR IN COUNCIL DIRECTED THAT, IN PROCESSING FUTURE APPLICATIONS FOR BUS FARE INCREASES, THE ADMINISTRATION SHOULD CONSIDER TAKING INTO ACCOUNT LAND SALE PROCEEDS OF FRANCHISED BUS COMPANIES. THE GOVERNOR IN COUNCIL ALSO ASKED THE ADMINISTRATION TO CONSIDER ABOLISHING KMB'S PROFIT CONTROL SCHEME.
THE ADMINISTRATION HAS COMMENCED A REVIEW AND HAS STARTED DISCUSSION WITH THE FRANCHISED BUS OPERATORS CONCERNED. OUR INTENTION IS THAT WHEN BUS DEPOT SITES ARE SOLD, A PORTION OF THE PROFIT SHOULD GO TOWARDS A FARE STABILITY FUND. SINCE THIS EXERCISE INVOLVES LEGISLATIVE AMENDMENTS TO THE PUBLIC BUS SERVICES ORDINANCE, IT WILL TAKE SOME TIME TO COMPLETE BUT I EXPECT TO BE ABLE TO INTRODUCE A BILL TO THIS COUNCIL IN APRIL 1995 WITH A VIEW TO ITS ENACTMENT DURING THE CURRENT SESSION. IN THE MEANTIME I CAN ASSURE HONOURABLE MEMBERS THAT THE ADMINISTRATION WILL NOT CONSIDER ANY FURTHER APPLICATIONS FOR THE DISPOSAL OF DEPOT SITES UNTIL THIS EXERCISE HAS BEEN COMPLETED.
/MEMBERS WILL
Page 30Page 31