XN000022-1981-06-19 — Page 7

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FRIDAY, JUNE 19, 1981

+WE ARE CURRENTLY CONSIDERING A SUITABLE MEANS OF APPOINTING A FEW MEMBERS OF THE PUBLIC TO SIT ON THE APPROPRIATE SUB-GROUPS TO ANALYSE OUR FINDINGS, TO DRAW CONCLUSIONS AND TO MAKE RECOMMENDATIONS ONCE THESE FINDINGS ARE ON HAND.

+ALTHOUGH IN TERMS OF PRACTICALITY, WE CANNOT INVOLVE TOO MUCH DIRECT PUBLIC PARTICIPATION IN THIS MANNER, WE WILL TRY OUR BEST TO KEEP THE PUBLIC INFORMED AT EVERY STAGE OF OUR REVIEW, NOT ONLY TO ACQUAINT THEM OF PROGRESS BUT TO GIVE THEM AN OPPORTUNITY TO ADVANCE THEIR VIEWS ON OUR FINDINGS TO US FOR FURTHER CONSIDERATION, + MR SUEN SAID.

ON THE MANAGEMENT STRUCTURE OF THE BUS COMPANIES, HE SAID WHY A SEPARATE SUB-GROUP HAD NOT BEEN SET UP WAS BECAUSE THE FIVE EXISTING SUB-GROUPS IN CARRYING OUT THE IR JOB WOULD AT THE SAME TIME BE EXAMINING IT.

+THEY NEED TO KNOW, FOR EXAMPLE, IN THE CONTEXT OF THE EXAMINATION OF THE USE OF SPARE PARTS, HOW THE RELEVANT DEPARTMENTS IN THE COMPANIES ARE ORGANISED, TO WHOM ARE THEY RESPONSIBLE, HOW EXPENDITURE IS AUTHORISED ETC.

+ALL THESE ARE IN FACT THE SORT OF INFORMATION ONE WOULD SEEK TO OBTAIN IN A MANAGEMENT STUDY.

+THEREFORE, RATHER THAN DUPLICATING EFFORTS BY SETTING UP A SEPARATE SUB-GROUP, WE BELIEVE THAT WE CAN BUILD A COMPLETE PICTURE OF THE EFFECTIVENESS OF THE MANAGEMENT FROM OUR VARIOUS STUDIES, + MR SUEN SAID.

ON THE KMB PROPERTY SUBSIDIARY TYLEELORD, ALTHOUGH IT WAS NOT WITHIN THE TERMS OF REFERENCE OF THE REVIEW, MR SUEN SAID NEGOTIATIONS HAD ALREADY STARTED BETWEEN THE ADMINISTRATION AND KMB TO FIND A SUITABLE ARRANGEMENT TO ENABLE KMB TO DIVEST OF

ITS INTEREST IN THE COMPANY.

+VARIOUS OPTIONS ARE CURRENTLY BEING EXAMINED AND IT IS HOPED THAT THE NEGOTIATIONS WILL BE COMPLETED BY ABOUT THE SAME TIME AS THE REVIEW IS COMPLETED, THAT IS TOWARDS THE END OF SEPTEMBER,+ HE SAID.

THE REVIEW REPORT IS EXPECTED TO BE SUBMITTED TO THE TRANSPORT ADVISORY COMMITTEE FOR CONSIDERATION IN OCTOBER BEFORE IT IS SUBMITTED TO THE EXECUTIVE COUNCIL.

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