XN000022-1974-12-13 — Page 2

FRIDAY, DECEMBER 13, 1974

GOVERNMENT MOVES TO IMPROVE BUS SERVICES

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THE GOVERNMENT WILL BE GIVEN WIDE-RANGING POWERS TO CONTROL THE OPERATIONS OF BUS COMPANIES UNDER PROPOSED LEGISLATION PUBLISHED TODAY. THE OBJECT IS TO IMPROVE THE SERVICES PROVIDED BY THE FRANCHISED BUS COMPANIES.

THE PROPOSED LEGISLATION, KNOWN AS THE PUBLIC OMNIBUS SERVICES BILL 1975, WOULD EMPOWER THE GOVERNOR IN COUNCIL TO ISSUE FRANCHISES TO BUS COMPANIES FOR INITIAL PERIODS OF UP TO TEN YEARS.

IT IS EXPECTED THAT NEW 10-YEAR FRANCHISES WILL BE GRANTED TO KOWLOON MOTOR BUS CO. (1933) LTD, AND CHINA MOTOR BUS CO. LTD. AFTER THE BILL BECOMES LAW. THERE IS ALSO PROVISION IN THE BILL EITHER FOR FRANCHISES TO BE EXTENDED FOR A FIXED PERIOD OF UP TO FIVE YEARS, OR FOR AN ARRANGEMENT WHICH WOULD ALLOW THE COMPANIES TO ROLL FORWARD THEIR 10-YEAR FRANCHISES AT TWO-YEARLY INTERVALS.

THIS ROLLING FRANCHISE CONCEPT WOULD EXTEND THE FRANCHISE PERIOD, ON EACH OCCASION, FOR UP TO TWO YEARS, PROVIDED THE PERFORMANCE OF THE COMPANY CONCERNED HAD BEEN SATISFACTORY.

EXPLAINING THE PURPOSE OF THE ROLLING FRANCHISE, A GOVERNMENT SPOKESMAN SAID THAT, IN VIEW OF THE VERY LARGE CAPITAL INVESTMENT THAT CMB AND KMB WILL HAVE TO MAKE IF THEY ARE TO PROVIDE ADEQUATE BUS SERVICES IN THE FUTURE, A ROLLING FRANCHISE WOULD GIVE EACH COMPANY AN ASSURANCE OF CONTINUITY FOR TEN YEARS AHEAD, PROVIDED THEY PERFORMED SATISFACTORILY.

HE ADDED THAT, IF CMB AND KMD WERE GRANTED NEW FRANCHISES UNDER THE BILL AND IF THIS METHOD OF EXTENSION WERE TO BE ADOPTED FOR THESE TWO COMPANIES, CONSIDERATION OF SUCH AN EXTENSION WOULD BE PRECEDED BY A DETAILED BIENNIAL EXAMINATION OF EACH COMPANY'S PERFORMANCE UNDER ITS FRANCHISE AND OF ITS PHYSICAL AND FINANCIAL FORWARD PLANNING.

THE BILL STIPULATES THAT FRANCHISES ARE TO BE GRANTED FOR SCHEDULES OF ROUTES AND NOT, AS PREVIOUSLY, FOR GEOGRAPHICAL AREAS. A DETAILED SCHEDULE OF ROUTES HAS BEEN AGREED WITH BOTH KMB AND CMB FOR 1975/76.

IN ADDITION, CMB'S AND KMB'S PROJECTED VEHICLE REQUIREMENTS UP TO 1980, AND THEIR PROGRAMMES FOR ORDERING NEW BUSES, HAVE BEEN AGREED BY THE GOVERNMENT.

THE GOVERNOR IN COUNCIL WILL BE EMPOWERED TO DIRECT THE COMPANIES TO ALTER EXISTING ROUTES OR TO PROVIDE SERVICES ON NEW ROUTES, WHILE THE COMMISSIONER FOR TRANSPORT WILL BE ABLE TO REQUIRE THE COMPANIES TEMPORARILY TO ALTER EXISTING ROUTES OR TO PROVIDE ADDITIONAL SERVICES OR NEW ROUTES ON A TEMPORARY BASIS.

/UNDER PROVISIONS .....