Let me now turn to the other aspect of this motion debate, namely, the renewal of CMB's franchise. CMB's current franchise will expire on 31 August 1995. CMB is a major bus operator on Hong Kong Island which operates some 130 Island and cross- harbour routes. It carries 540,000 passengers a day. It employs over 2,500 staff and has some 15,000 square metres of depot space. Admittedly there have been many complaints about CMB and their service. However, we have seen some improvement since the cutting of some 26 routes from its network in 1993. For example in Southern District, CMB has provided extra buses to compete with the new Citybus Company.
In his motion the Honourable Zachary Wong has asked that the Administration should not grant CMB a new franchise on the expiry of the current one. This would be a very drastic move which could result in severe disruption of bus services especially on Hong Kong Island. If one is to look at the service provided by CMB in a dispassionate manner the conclusion must be that whilst there are shortcomings and there is great scope for improvement, CMB at least obtains an overall pass mark. That is why we are considering the offer of a new franchise to CMB and in the current negotiation with the company, the Administration will do its best to ensure that the network of routes offered to CMB is one which they can effectively fulfil and which will enable them to provide a better service.
As regards CMB's proposal to dispose of its Wong Chuk Hang site the Administration's position has been spelt out. Notwithstanding the pre-sale deal they have entered into, the Commissioner for Transport has made it crystal-clear that he is not prepared to release this site since it is required for bus operations during the current franchise. The Commissioner has also stressed that it is not appropriate for CMB to assume that the Wong Chuk Hang depot will not be required after the expiry
of the current franchise. We will certainly not provide CMB with a replacement depot site to enable the company to dispose of its Wong Chuk Hang site.
Mr President, the Administration cannot support the motion proposed by the Honourable Zachary Wong. It would be totally wrong to impose a freeze on KMB's application for a fare increase without first evaluating its submission. As I have explained, this is in hand. As regards CMB, we are now in the midst of negotiations on the renewal of their franchise. Their current standard of performance does not justify not renewing the franchise. That apart, the logistics of commissioning new operators require a long lead time.
The amendment to the motion proposed by the Honourable Miriam Lau reflects how she thinks KMB's application should be processed. She is absolutely right, KMB's application for a fare increase needs to be considered very carefully and indeed the procedures now adopted by the Administration covered the factors mentioned.