XN000022-1977-05-18 — Page 8

WEDNESDAY, MAY 18, 1977

FARES OF PUBLIC LIGHT BUSES

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THE GOVERNMENT HAS CONSIDERED THE POSSIBILITY OF CONTROLLING THE FARES OF PUBLIC LIGHT BUSES, BUT IT HAS DECIDED AGAINST DOING SO ON THE ADVICE OF THE TRANSPORT ADVISORY COMMITTEE.

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THIS WAS STATED BY THE SECRETARY FOR THE ENVIRONMENT, THE HON. DEREK JONES, IN REPLY TO A QUESTION BY THE HON. S.L. CHEN IN THE LEGISLATIVE COUNCIL TODAY.

MR. JONES SAID THAT PUBLIC LIGHT BUSES WERE A NON-FRANCHISED FORM OF PUBLIC TRANSPORT.

+THEY COMPETE WITH EACH OTHER AND I MIGHT ADD ALSO WITH LARGE BUSES, AND ARE PERMITTED TO VARY THEIR ROUTES AND FREQUENCIES IN ACCORDANCE WITH THEIR ESTIMATE OF THE DEMAND FOR THEIR SERVICES, HE ADDED.

TO CONTROL FARES, MR. JONES SAID, WOULD, IN EFFECT, MEAN DENYING THE COMPETITIVE NATURE OF THIS FORM OF PUBLIC TRANSPORT, WITH ITS FLEXIBLE ROUTES AND WITH PASSENGERS BEING GIVEN THE OPPORTUNITY OF BEING PICKED UP OR SET DOWN AT ANY POINT.

+THE FACT IS THAT COMPETITION AMONG PLE'S IS NORMALLY SUFFICIENT TO ENSURE A REASONABLE UNIFORMITY OF FARES, HE SAID. + IT IS ONLY IN PERIODS OF VERY HIGH DEMAND THAT FARE LEVELS CAN BE PUSHED HIGHER.+

MR. JONES EXPLAINED THAT WHAT THIS AMOUNTED TO WAS NO MORE THAN THE OPERATION OF NORMAL MARKET FORCES AND, IN THAT RESPECT, WAS NO DIFFERENT FROM THE FIXING OF THE PRICES OF VEGETABLES OR FISH.

HE FURTHER POINTED OUT THAT IT WOULD BE EXTREMELY DIFFICULT TO DEVISE A SCHEME FOR CONTROLLING THE FARES OF PUBLIC LIGHT BUSES WHILE AT THE SAME TIME RETAINING THE FLEXIBLE NATURE OF THEIR OPERATIONS.

+GIVEN THE NATURE OF THE BUSINESS, IT WOULD NOT BE DIFFICULT TO DEVISE MEANS TO CIRCUMVENT ANY CONTROLS AND THEY WOULD THEREFORE NOT BE EASILY ENFORCEABLE,+ HE ADDED.

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