XN000022-1985-11-22 — Page 4

FRIDAY, NOVEMBER 22, 1985

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HE ADDED THAT IT ALSO ENABLED CIVIL SERVANTS AND THEIR PRIVATE SECTOR COUNTER-PARTS TO EXCHANGE IDEAS TO THEIR MUTUAL BENEFIT.

CONGRATULATING THE ASSOCIATION FOR ITS CONTRIBUTION TO PROMOTING EFFECTIVE MANAGEMENT OVER THE PAST 25 YEARS, SIR EDWARD SAID THAT HONG KONG'S ECONOMIC SUCCESS WAS DUE IN LARGE PART TO THE HARD WORK, INITIATIVE AND SKILL OF ITS PEOPLE.

+THE PROPER MANAGEMENT OF THIS VITAL HUMAN RESOURCE IS ALSO

AN IMPORTANT FACTOR IN THAT SUCCESS, HE SAID.

+BUT IF WE ARE TO CONTINUE TO SUCCEED WE CANNOT AFFORD TO RELAX OUR EFFORTS TO IMPROVE HONG KONG'S MANAGEMENT SKILLS.

+AGAINST THE BACKGROUND OF A STILL SLUGGISH WORLD ECONOMY THE MOUNTING THREAT OF PROTECTIONISM AND THE EVER-INCREASING COMPETITION FOR THE MARKETS AVAILABLE, HONG KONG'S FUTURE PROSPERITY REQUIRES THAT MANAGEMENT BE CONSTANTLY ON THE ALERT TO MEET NEW CHALLENGES, HE SAID,

MOVE TO DE-REGULATE PEAK TRAM FARES

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THE PEAK TRAMWAY (AMENDMENT) BILL 1985, PUBLISHED IN THE ZETTE TODAY, PROVIDES FOR THE DE-REGULATION OF PEAK TRAM FARES . THE GRANTING OF A RIGHT TO THE PEAK TRAMWAY COMPANY TO OPERATE THE TRAMWAY FOR 20 YEARS AT A PREMIUM OF $2.6 MILLION.

» GOVERNMENT SPOKESMAN EXPLAINED THAT AS THE PEAK TRAM WAS SA LARGELY A RECREATIONAL FACILITY AND NOT AN ESSENTIAL FORM OF FUELIC TRANSPORT, IT WAS NO LONGER NECESSARY FOR GOVERNMENT TO EXERCISE CONTROL OVER THE PEAK TRAM FARES.

HOWEVER, IN ORDER TO PROTECT THE INTEREST OF THE SMALL NUMBER OF PEOPLE WHO USE THE PEAK TRAMWAY FOR COMMUTING, THE BILL PROVIDES FOR MONTHLY TICKETS TO BE ISSUED BY THE COMPANY AT CONCESSIONARY ALTES.

THE CHARGE FOR A MONTHLY TICKET IS NOT TO EXCEED 25 TIMES THE LOWEST FARE FOR A FULL DISTANCE SINGLE JOURNEY, PROVIDED THAT THE CHARGE 13 NOT LESS THAN THE CURRENT LEVEL OF $100 FOR AN ADULT AND $50 FOR A STUDENT UNDER THE AGE OF 16 YEARS.

THE PREMIUM FOR THE 20-YEAR RIGHT TO OPERATE THE TRAMWAY IS INTENDED TO REPLACE THE OBSOLETE ANNUAL PERMIT FEE SYSTEM PROVIDED IN THE EXISTING PEAK TRAMWAY ORDINANCE.

UNDER THE EXISTING ORDINANCE, THE PEAK TRAMWAY COMPANY IS REQUIRED TO PAY GOVERNMENT AN ANNUAL PERMIT FEE FOR THE USE OF GOVERNMENT LAND TO OPERATE THE TRAMWAY. THE PROPOSED PREMIUM FOR THE 20-YEAR RIGHT IS A COMMERCIAL RENT FOR THE USE OF GOVERNMENT LAND FOR TRAMWAY PURPOSES. THE 20-YEAR RIGHT WOULD SO FROVIDE SUFFICIENT SECURITY FOR THE COMPANY TO MODERNISE THE EQUIPMENT OF THE TRAMWAY.

THIS BILL