XN000022-1981-04-10 — Page 2

FRIDAY, APRIL 10, 1981

BUS FARE RISE APPROVED

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BUS FARE INCREASES AVERAGING JUST OVER 40 PER CENT FOR KMB AND ABOUT 30 PER CENT FOR CMB WILL COME INTO EFFECT ON APRIL 12.

IN APPROVING THE INCREASES, THE GOVERNMENT HAS ALSO ACCEPTED A PACKAGE OF RECOMMENDATIONS BY THE TRANSPORT ADVISORY COMMITTEE TO REVIEW THE MEMORANDUM OF UNDERSTANDING AND THE SCHEME OF CONTROL AS THEY CURRENTLY APPLY TO THE BUS COMPANIES.

›A PROJECTION OF KMB'S PROFIT AND LOSS ACCOUNT BY THE GOVERNMENT'S FINANCIAL MONITORING UNIT SHOWS THAT IN ORDER TO BREAK EVEN IN 1981, THE COMPANY ACTUALLY REQUIRES AN AVERAGE 'NCREASE OF ABOUT 30 PER CENT IN FARES WITH EFFECT FROM THIS MONTH, A GOVERNMENT SPOKESMAN SAID.

+THE SMALLER INCREASE OF AROUND 40 PER CENT NOW APPROVED, WOULD HAVE ACHIEVED THE SAME RESULT, IF FARES HAD BEEN ADJUSTED ON FEBRUARY 1. HOWEVER, THE COMPLEXITY OF THE ISSUES AND THE NEED TO GIVE FULL AND CAREFULL CONSIDERATION OF THE INTERESTS

THE COMMUNITY AS WELL AS OF THE TRAVELLING PUBLIC REQUIRED - MUCH LONGER PERIOD OF DELIBERATION THAN HAS NORMALLY BEEN THE CACE.

+THE GOVERNMENT HAS THEREFORE IN THESE UNUSUAL CIRCUMSTANCES DECIDED TO MAKE A PAYMENT TO COVER THE ESTIMATED SHORTFALL IN KME'. OPERATING ACCOUNT IN 1981 ARISING FROM THE DECISION TO IMPLEMENT THE LOWER LEVEL OF INCREASE. THIS SHORTFALL IS ESTIMATED AT $40 MILLION, HE EXPLAINED,

+IT MUST BE NOTED THAT THIS WILL SIMPLY PERMIT KMB TO BREAK EVEN, BUT NOT TO MAKE ANY PROFIT. THE 40 PER CENT FARE INCREASE WILL" IN ANY CASE LEAVE KMB WITH A SUBSTANTIAL CASH FLOW PROBLEM BY THE END OF 1981, THE SPOKESMAN ADDED.

THE MAIN EFFECTS OF THE FARE INCREASES ON KMB'S SERVICES ARE THAT FARES ON URBAN ROUTES IN KOWLOON AND THE NEW TERRITORIES WILL GO UP FROM 30 CENTS TO 50 CENTS AT THE BOTTOM END OF THE SCALE AND FROM $1 TO $1.50 AT THE TOP END.

FARES ON RURAL ROUTES WILL BE RAISED FROM 40 CENTS TO 60 CENTS AT THE BOTTOM AND FROM $2 TO $3 AT THE TOP.

FOR EXAMPLE, PASSENGERS TRAVELLING FROM STAR FERRY TO KOWLOON CITY WILL PAY 60 CENTS INSTEAD OF 40 CENTS AND FROM STAR FERRY TO LAI CHI KOK 70 CENTS INSTEAD OF 50 CENTS. THOSE USING THE JORDAN ROAD FERRY TO TSUEN WAN FERRY ROUTE WILL PAY $1 INSTEAD OF 70 CENTS,

THE MAIN FEATURES OF CMB'S NEW SCALE ARE THAT FARES ON URBAN ROUTES WILL BE REVISED FROM 50 CENTS TO 60 CENTS AT THE BOTTOM END AND FROM 80 CENTS TO $1 AT THE TOP END.

THE LOWEST