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Government's response to statement issued by CMB on bus bill
In response to a statement issued by the China Motor Bus Company (CMB) yesterday on the Public Bus Services (Amendment) Bill 1995, a Government spokesman reiterated that the Bill which will be introduced into the Legislative Council on May 24 is aimed at strengthening the Government's powers to maintain franchised bus services in situations where a franchised bus company ceased to operate, and to reduce the scope for avoidance of the existing legislation by transferring title in the bus service related assets to a third party, such as a group
company.
The Government will only acquire or possess assets used or kept by the bus franchisee which are needed to provide a public bus service, for example, buses, spare parts and depots.
In leasing or in purchasing depots or buses from the bus companies or third parties, compensation based on an open market rental or value would be paid to the
owners.
Open market value in these circumstances aims to take into account the potential of the assets and the most favourable land use permitted under the Crown lease.
Refuting CMB joint managing director Irene Ngan Kit-ling's claim that the Bill is a "retroactive ordinance", the Commissioner for Transport, Mr Rafael Hui, stressed that this is not the case. Legal advice is also to that effect. After the legislation is enacted it will affect rights that exist when the Bill is enacted and this is not uncommon in the public interest and to prevent avoidance of legislation.
Government would like to see the Bill, which would serve the public interest, passed in the current Legislative Council session ending this July.
It is necessary for the Government to have adequate powers to maintain bus services to the public when a franchise is not renewed or is revoked. The four franchised bus companies in Hong Kong carry over 3.5 million passengers daily.
KMB has 3,360 buses, and is supported by 170,000 square metres of depot spaces. CMB has 940 buses and is supported by 35,000 square metres of depot spaces. Considering the size of operation, a longer period is needed to gear up for replacing their operation.
End/Saturday, May 13, 1995