XN000022-1978-06-21 — Page 5

WEDNESDAY, JUNE 21, 1978

THE COMPANY'S ORIGINAL SUBMISSION WAS FOR AN AVERAGE INCREASE 1: TARIFFS OF 10 PER CENT FROM JULY 1 THIS YEAR. A FURTHER INCREASE OF A SIMILAR MAGNITUDE WAS ESTIMATED TO BE NECESSARY BY JULY 1980.

+I BELIEVE THAT THE MAJORITY OF TELEPHONE SUBSCRIBERS AND THE GENERAL PUBLIC WILL APPRECIATE THE GOVERNMENT'S EFFORTS IN REDUCING THE CURRENT INCREASE TO 7 PER CENT ON AVERAGE AND IN POSTPONING THE NEXT INCREASE TO A DATE BEYOND 1980, HE SAID.

IN REPLY TO POINTS RAISED BY SIR SZE-YUEN, MR. JEAFFRESON SAID THE GOVERNMENT INTENDS TO LOOK AT THE PARTICULAR WEAKNESS IN THE PROFIT CONTROL SCHEME WHICH PROVIDES NO INCENTIVE FOR THE COMPANY TO BORROW TO FINANCE ITS CAPITAL EXPANSION WHEN IT REVIEWS THE SCHEME WITH THE COMPANY LATER THIS YEAR.

HE ALSO CONFIRMED THAT AS A PART OF THE MONITORING PROCESS THE GOVERNMENT DOES HAVE REGARD TO THE LEVELS OF SALARIES, FRINGE BENEFITS OF THE STAFF OF THE VARIOUS UTILITIES AND DOES LOOK FOR INCREASES IN PRODUCTIVITY.

UNOFFICIALS EXPRESS CONCERN OVER OPERATIONS OF CONTAINER TRUCKS ***

UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL ARE CONCERNED ABOUT THE LACK OF PARKING SPACES AND WORKING AREAS FOR LOADING AND UNLOADING CONTAINERS IN HONG KONG.

SPEAKING BEFORE THE COUNCIL WAS ADJOURNED THIS AFTERNOON, SENIOR UNOFFICIAL MEMBER, SIR SZE-YUEN CHUNG, SAID HE AND HIS COLLEAGUES WOULD LIKE THE GOVERNMENT TO CONDUCT A CRITICAL EXAMINATION OF CONTAINER OPERATIONS.

DESPITE OUR SUCCESS, WHICH PUT THE KWAI CHUNG TERMINAL AMONG THE TOP FOUR CONTAINER PORTS IN THE WORLD, THERE WERE STILL SOME PROBLEMS, HE SAID.

FIRST THERE WAS THE EXTREME ROAD CONGESTION WITHIN SUCH INDUSTRIAL AREAS AS KWUN TONG, SAN PO KONG, KWAI CHUNG, TSUEN WAN AND ABERDEEN, CAUSED BY THE LOADING AND UNLOADING OF CONTAINERS ON PUBLIC ROADS.

THERE WAS NO REQUIREMENT UNTIL A FEW YEARS AGO FOR FACTORIES TO PROVIDE SPACE WITHIN THEIR PREMISES FOR THIS PURPOSE AND AS A RESULT, IT COULD ONLY BE CARRIED OUT EITHER AT THE CONTAINER TERMINAL OR ON PUBLIC ROADS.

FACILITIES AT THE TERMINAL, BECAUSE OF THE CHARGES LEVIED, WERE UNFORTUNATELY VERY MUCH UNDER-UTILISED BY HAULAGE OPERATORS WHO PREFERRED TO USE PUBLIC ROADS FOR WHICH THERE WAS, OF COURSE, NO CHARGE, HE SAID.

/THE SECOND PROBLEM