Committee endorses Kowloon Motor Bus fare rise
The following is issued on behalf of the Transport Advisory Committee:
The Transport Advisory Committee today (Tuesday) endorsed a weighted average seven per cent fare rise for Kowloon Motor Bus (KMB). There would be no increase on cross harbour routes and fares on local routes would be increased by an average of eight per cent.
The committee also agreed to put the proposal to the Governor-in- Council for consideration. It was recommended that the fare rise would take effect in early April 1995.
In endorsing the fare increase proposal, members noted that KMB's operating costs rose by 15.8% in 1994 and are expected to increase by 12.3% in 1995. A fare increase would be necessary for KMB to cover operating cost increase and earn a reasonable return.
Members considered it necessary that the fares be pitched at a level that was affordable to the public. Members also took into account the
representations received from the community.
As a result of the proposed fare rise, 8% of the travelling public would have no increase at all and 90% would pay only 10 cents to 50 cents more per trip.
They noted that KMB was providing an improved service and was actively seeking ways to further improve its services to better meet passengers' demand and expectations.
For example, KMB has proposed to introduce nine new routes and implement 108 service improvement proposals in the next two years.
Members also heard that KMB had plans to pursue cost economy measures, including a proposal to cancel 22 routes and implement 25 service rationalisation proposals in 1995 and 1996.