XN000022-1985-08-08 — Page 13

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FEURSDAY, AUGUST 1,

+1 IS ALSO DEBATABLE WHETHER THE LEVEL OF COMPETITION WE ALREADY HAVE IS ALTOGETHER BENEFICIAL, HE ADDED,

MR LEEDS POINTED OUT THAT COMPLETE DEREGULATION AND ABSOLUTELY FREE COMPETITION IN THE PUBLIC TRANSPORT SYSTEM MIGHT NOT BEST SERVE THE INTERESTS OF TRANSPORT USERS IN HONG KONG. THIS WAS ECAUSE THERE WAS NO WAY TO ENSURE THAT THE COMMUNITY'S INVESTMENT IN TRANSPORT FACILITIES, SUCH AS ROADS AND RAILWAYS, WOULD BE PUT TO THE BEST USE.

HE SAID AN UNLIMITED NUMBER OF LICENCES FOR LIGHT BUSES AND TAXIS, LESS PROTECTION AGAINST EXCESSIVE, FARES AND A RELUCTANCE BY OPERATORS TO PROVIDE SERVICES IN AREAS OF LOW PROFITABILITY ARE SOME OF THE ILL CONSEQUENCES OF RELAXING REGULATION TOO MUCH.

MOREOVER, HE POINTED OUT, HONG KONG LACKED THE ONE ELEMENT NECESSARY FOR GENUINE FREE COMPETITION BETWEEN TRANSPORT MODES. WHICH WAS A SUPPLY OF ROAD CAPACITY IN THE URBAN AREA WHICH COULD BE INCREASED IN RESPONSE TO DEMAND.

THERE WAS A NEED THEREFORE TO REGULATE THE VOLUME OF TRAFFIC TO FIT THE SUPPLY OF ROAD CAPACITY, TO ENCOURAGE THE USE OF PUBLIC TRANSPORT AND FOR THE COMMUNITY TO INVEST THROUGH THE GOVERNMENT IN ALTERNATIVE TRANSPORT MODES LIKE THE RAILWAYS TO GIVE RELIEF TO THE ROAD SYSTEM.

TURNING TO PUBLIC TRANSPORT FARES, MR LEEDS NOTED THAT THERE WAS LITTLE CO-ORDINATION. WITH A NUMBER OF DIFFERENT OPERATORS, A UNIFIED FARE STRUCTURE WAS VIRTUALLY IMPOSSIBLE AND WE NOW HAD A SITUATION WHERE FARES ON BUSES AND FERRIES WERE DETERMINED BY SCALES APPROVED BY THE EXECUTIVE COUNCIL, FARES ON RAILWAYS SET BY THEIR RESPECTIVE BOARDS OF DIRECTORS AND FARES ON MINOR SERVICES, SUCH AS LIGHT BUSES, LARGELY DECIDED BY THE INDIVIDUAL OWNER OR DRIVER.

IT IS THE DISPARITY OF FARES WHICH HIGHLIGHTS PROBLEMS FACED WHEN THERE IS SOME COMPETITION, MR LEEDS POINTED OUT.

MR LEEDS ALSO STRESSED THAT COSTS, BOTH CAPITAL AND OPERATING, WERE A MAJOR DETERMINANT IN THE LEVEL OF FARES AND THAT THE COSTS OF PROVIDING DIFFERENT TRANSPORT SERVICES INEVITABLY VARIED WIDELY.

WHILE THERE WAS PLENTY OF FREE PUBLIC ADVICE ON WHAT SHOULD BE DONE OR WHAT SHOULD NOT BE DONE TO IMPROVE PUBLIC TRANSPORT, RARELY DID THE ADVICE TAKE INTO ACCOUNT THE IMPORTANT ISSUE OF COST, HE NOTED.

MR LEEDS BELIEVED THAT THE CHOICE WOULD APPEAR TO BE TO STAY ROUGHLY AS WE ARE, OR TO REDUCE THE LEVEL OF REGULATION AND ALLOW MORE FREE-FOR-ALL" COMPETITION OR TO MOVE TOWARDS CLOSER INTEGRATION BETWEEN VARIOUS TRANSPORT MODES.

+WHATEVER CHOICE IS MADE IN THE END IT IS THE PUBLIC WHO PAY AND ON THE BASIS THAT HE WHO PAYS THE PIPER CALLS THE TUNE THE PUBLIC WILL NOT IGNORE THE OPPORTUNITY OF MAKING ITS VIEWS KNOWN ON TRANSPORT ISSUES WHICH COULD AFFECT A HIGH PROPORTION OF THE TRAVELLING PUBLIC, HE SAID.

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