8.
The impact of fare increases must be looked at realistically. To reject such increases on the grounds that this would spiral inflation and adversely affect the economy is too simplistic. The impact on livelihood needs to be seen in proper perspective. For the five year period from 1991 to 1995, the average annual impact on the Consumer Price Index arising from all public transport fare increases equated to a meagre 0.29 percentage point. The current public transport component of the average household expenditure is less than 5%.
Mr President, of late there has been a growing temptation to politicise each and every application for a fare adjustment. To say the least, the tendency to focus on increases in percentage terms is misleading. In reality the increase in dollar terms is minimal and affordable, with increases on the majority of individual routes well under $1.
Mr President, it is certainly right and proper for Members of this Council to be concerned about increases in public transport fares. With respect, the discharge of responsibility does not lie in the outright rejection of such applications; surely responsibility must extend to an examination of all the facts and figures as well as taking into account the basis on which public transport is provided and recognising the full implications of any decision.
Mr President, I urge Hon Members to vote against the motion.
End
SES in debate on freezing of fees and charges
Following is the speech by the Secretary for Economic Services, Mr Gordon Siu, in the motion debate on Freezing of Government, public utility corporations' fees and charges, and public housing rents in the Legislative Council today (Wednesday):
Mr President,
Public utilities
I would like to comment on those parts of the motion and the proposed amendments related to tariffs charged by public utility corporations in the public and private sections in my area of responsibility.