XN000022-1981-05-20 — Page 2

WEDNESDAY, MAY 20, 1981

BUS OPERATIONS REVIEW UNDERWAY

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WORK HAS BEGUN IN EARNEST ON THE GOVERNMENT REVIEW OF THE BUS OPERATIONS OF THE CHINA MOTOR BUS AND KOWLOON MOTOR BUS COMPANIES.

THE REVIEW IS BEING CONDUCTED WITH A VIEW TO FINDING WAYS OF IMPROVING THE COST EFFECTIVENESS AND EFFICIENCY OF BUS SERVICES.

A GOVERNMENT SPOKESMAN RECALLED TODAY (WEDNESDAY) THAT THE TRANSPORT ADVISORY COMMITTEE HAD RECOMMENDED A PACKAGE OF PROPOSALS FOR A COMPREHENSIVE STUDY OF THE MEMORANDUM OF UNDERSTAND ING AND THE SCHEME OF CONTROL AS THEY CURRENTLY APPLY TO THE BUS COMPANIES.

IN THE CASE OF KMB, THE SPOKESMAN ADDED, THE TAC PROPOSED AN INTERIM FARE INCREASE TO ALLOW THE COMPANY TO BREAK EVEN IN 1981 BUT THAT FURTHER CONSIDERATION SHOULD BE GIVEN TO KMB'S FULL APPLICATION ON COMPLETION OF THE STUDY.

TEAMS COMPRISING A CROSS-SECTION OF OFFICIALS FROM VARIOUS GOVERNMENT DEPARTMENTS HAVE BEEN FORMED AND ARE IN THE PROCESS OF EXAMINING EXISTING ARRANGEMENTS UNDER THE MEMORANDUM OF UNDERSTANDING AND SCHEME OF CONTROL.

THE SPECIFIC AREAS OF RESPONSIBILITY OF THE TEAMS ARE TO:

* RE-EXAMINE THE ROUTE DEVELOPMENT PROGRAMME WITH A VIEW

TO REDUCING UNDER-UTILISED SERVICES AND OPTIMISING EFFICIENCY (TRANSPORT DEPARTMENT, HOME AFFAIRS DEPARTMENT AND NEW TERRITORIES ADMINISTRATION) -

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REVIEW THE PROCEDURES FOR EXAMINING BUSES HAVING REGARD TO THE COST AND SAFETY IMPLICATIONS (PUBLIC WORKS DEPARTMENT AND TRANSPORT DEPARTMENT)-

RE-EXAMINE THE PROGRAMME FOR ACQUIRING DEPOT SPACE AND TO RECOMMEND THE MOST ECONOMICAL METHOD OF MEETING THE LAND REQUIREMENT (ENVIRONMENT BRANCH AND TRANSPORT DEPARTMENT)*

INVESTIGATE THE METHOD OF ACQUISITION OF SPARE PARTS BY THE BUS COMPANIES WITH PARTICULAR REFERENCE TO THE ALTERNATIVE SOURCES OF SUPPLY OF SPARE PARTS WITH A VIEW TO REDUCING COSTS, AND TO RECOMMEND APPROPRIATE LEVELS FOR SPARE PARTS STOCK (GOVERNMENT SUPPLIES DEPARTMENT AND PUBLIC WORKS DEPARTMENT) =

* REVIEW THE SCHEME OF CONTROL APPLICABLE TO THE BUS

COMPANIES WITH PARTICULAR EMPHASIS ON THE SOURCES OF INCOME CURRENTLY OUTSIDE THE SCHEME (ECONOMIC SERVICES BRANCH).