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Public Bus Services Ordinance
Following is the speech by the Secretary for Transport, Mr Haider Barma, in moving the resolution under the Public Bus Services Ordinance in the Legislative Council today (Wednesday):
Mr President,
I move the Resolution standing in my name on the Order Paper.
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Sections 26 to 32 of the Public Bus Services Ordinance provide for a profit control scheme and also stipulate certain provisions relating to the calculation of operating costs and the disclosure of operational and financial information. significant feature is that the scheme does not guarantee any minimum level of profit but limits the maximum amount that can be earned by a franchised bus operator. Indeed, our current policy for processing fare increase applications is to take various factors into account, particularly operating costs, performance and public affordability rather than to provide for a profit level based on a percentage rate of return on average net fixed assets. Given this practice our conscious approach has been to exclude all references to a profit control scheme when negotiating new bus franchises.
Citybus is not subject to a profit control scheme under its existing franchise. Likewise, its new franchise, which will commence on 1 September 1996, will not be subject to any such scheme.
We therefore need to disapply sections 27, 28, 29 and 31 of the Public Bus Services Ordinance which govern the operation of the profit control scheme whilst retaining -
(a)
section 26 which defines the meaning of key terms;
(b)
section 26A which specifies that financial penalties levied against the bus company cannot be counted as operating expenses for the purposes of fare determination;
(c)
section 30 which enables the Government to specify depreciation rates in respect of franchise related fixed assets; and
(d)
section 32 which requires the company to produce accounts and other information needed for the effective monitoring of bus operations.
The Resolution before Honourable Members will give effect to the arrangements I have described. Thank you Mr President.
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