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Extension of KMB franchise
Following is question by the Hon Lau Chin-shek and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):
Question:
In regard to the extension of the franchise granted to the Kowloon Motor Bus Company Limited (KMB), will the Government inform this Council:
Reply:
(a)
(b)
Mr President.
(a)
of the progress in the negotiation between the Government and KMB over the extension of the franchise, including the latest developments regarding the proposed exemption of KMB from the Profit Control Scheme, as well as the date when the negotiation is expected to complete, and whether this Council will be consulted on the matter; and
whether the Government will consider extending the franchise granted to the KMB to another bus company, so as to allow two bus companies operating on the same specified routes concurrently to enhance competition?
The Kowloon Motor Bus Company Limited (KMB)'s current franchise will expire on 31 August 1997. The Administration expects to award a new franchise to KMB and has started negotiations with the company. Our intention is to abolish the current profit control scheme in this new franchise. As requested by Honourable Members, and now stipulated under section 6(2A) of the Public Bus Services Ordinance, a recommendation on a bus franchise renewal should be put to the Governor in Council not less than nine months before the expiry of the franchise i.e. before December 1996. We are working towards and should meet this timetable. As part of this exercise we shall consult both the Transport Advisory Committee and the Transport Panel of this Council.