XN000022-1982-10-13 — Page 7

WEDNESDAY, OCTOBER 13, 1982

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PHONE CHARGES TO BE INCREASED

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THE LEGISLATIVE COUNCIL TODAY PASSED A RESOLUTION ALLOWING THE HONG KONG TELEPHONE COMPANY TO INCREASE CHARGES WITH EFFECT FROM JANUARY 1, 1983.

IN MOVING THE MOTION FOR APPROVAL, THE SECRETARY FOR ECONOMIC SERVICES, THE HON P. JACOBS SAID THE INCREASES FOR LINE RENTALS AND INSTALLATION, AS WELL AS MAINTENANCE AND MISCELLANEOUS CHARGES, WERE PROPOSED BY THE COMPANY IN AN APPLICATION SUBMITTED IN JULY, ON THE GROUND THAT INCREASES IN THE COMPANY'S COSTS WOULD MAKE HIGHER CHARGES UNAVOIDABLE.

MR JACOBS SAID THE MAJOR ITEMS IN THE RESOLUTION COMPRISED INCREASED RENTALS FOR RESIDENTIAL LINES, BUSINESS LINES (INCLUDING SPECIAL FACILITIES FOR BUSINESS LINES) AND LEASED CIRCUITS, WITH AN AVERAGE INCREASE OF 16 PER CENT.

OTHER INCREASES RELATED TO INDIVIDUAL MAINTENANCE CHARGES FOR DIFFERENT CLASSES OF PRIVATE AUTOMATIC BRANCH EXCHANGES AND VARIOUS INSTALLATION AND REMOVAL CHARGES TO ENABLE THE COMPANY TO RECOVER THE COSTS OF PROVIDING THE SERVICES.

RENTAL FOR PRIVATE PAY-PHONES WAS ALSO INCREASED TO COVER THE COST OF ADDITIONAL EQUIPMENT THAT HAD TO BE PROVIDED IN THE TELEPHONE SYSTEM TO CATER FOR USERS OF THESE PAY-PHONES, MR JACOBS SAID.

THE CHARGES FOR THE USE OF A PUBLIC PAY-PHONE WAS INCREASED FROM 50 CENTS TO $1 A CALL. MR JACOBS SAID THE INCREASE WAS THE FIRST SINCE 1975.

+THE ESTIMATED ADDITIONAL REVENUE ACCRUING FROM THESE INCREASES SHOULD OBVIATE THE NEED FOR FURTHER INCREASES DURING 1983, + MR JACOBS SAID.

+BUT I WOULD BE REMISS IF I DID NOT FOREWARN THIS COUNCIL THAT RISING COSTS WILL MOST PROBABLY NECESSITATE FURTHER INCREASES IN TARIFFS EARLY IN 1984, + HE ADDED.

MR JACOBS SAID THAT LINE RENTAL CHARGES WERE LAST INCREASED BY RESOLUTION OF THE LEGISLATIVE COUNCIL WITH EFFECT FROM SEPTEMBER 1, 1981 WHEREAS INSTALLATION, MAINTENANCE AND CERTAIN MISCELLANEOUS CHARGES WERE INCREASED AS FROM JANUARY THIS YEAR.

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