XN000022-1986-03-14 — Page 6

FRIDAY, MARCH 14, 1986

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TURNING TO EDUCATION, DR HAYES NOTED THAT THE PLANS ALSO INCLUDED AMPLE PROVISION OF PRIMARY AND SECONDARY SCHOOLS, TO MEET THE NEEDS OF THE GROWING POPULATION.

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HE PARTICULARLY THANKED THE PO LEUNG KUK WHICH HAD LONG ASSOCIATION WITH THE SCHOOL BUILDING PROGRAMME ON THE ISLAND.

+AN EDUCATED COMMUNITY IS A MUST FOR MODERN HONG KONG. BY CONCENTRATING ITS EFFORTS ON EDUCATION AND BY PLACING ITS EXPERIENCE AND PRESTIGE AT THE SERVICE OF THE LOCAL COMMUNITY, THE PO LEUNG KUK IS RENDERING A GREAT SERVICE TO TSING YI NEW TOWN, HE SAID.

RIGHT BALANCE SEEN IN BUS CONTROL SCHEME

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THE SCHEME OF CONTROL GOVERNING FRANCHISED BUS COMPANIES STRUCK THE RIGHT BALANCE BETWEEN THE INTEREST OF BUS COMMUTERS AND THAT OF THE FIRMS' SHAREHOLDERS, THE DEPUTY COMMISSIONER FOR TRANSPORT, MR JAMES SO, SAID THIS (FRIDAY) EVENING.

ADDRESSING THE LIONS CLUB OF BRAEMAR HILL, MR SO SAID THE SCHEME OF CONTROL NOT ONLY ENSURED THAT COMMUTERS PAID A REASONABLE FARE COMMENSURATE WITH THE STANDARD OF BUS SERVICES PROVIDED BUT ALSO PROTECTED THE INVESTMENT OF SHAREHOLDERS BY GUARANTEEING A FAIR RETURN.

HE BELIEVED PUBLIC CRITICISMS AGAINST FARE RISE APPLICATIONS BY THE BUS COMPANIES STEMMED FROM A GENERAL LACK OF UNDERSTANDING OF THE WAY IN WHICH THE GOVERNMENT REGULATED THE OPERATION AND FINANCES OF THE BUS FIRMS THROUGH THE SCHEME OF CONTROL.

THE SCHEME OF CONTROL, HE EXPLAINED, WAS AN AGREEMENT BETWEEN THE GOVERNMENT AND THE FRANCHISED BUS COMPANIES. THE TERMS AND CONDITIONS OF THIS AGREEMENT WERE SET OUT IN THE PUBLIC BUS SERVICES ORDINANCE AND FURTHER AMPLIFIED IN THE FRANCHISE GRANTED TO THE BUS COMPANIES IN 1975.

+AS SUCH, THE TERMS AND CONDITIONS OF THIS AGREEMENT CANNOT BE UNILATERALLY ALTERED BUT THEY ARE SUBJECT TO PERIODIC REVIEW BY THE GOVERNMENT IN CONSULTATION WITH THE BUS COMPANIES, + MR SO SAID.

UNDER THE SCHEME OF CONTROL, THE PROFITS OF EACH BUS COMPANY WERE LIMITED TO A FIXED PERCENTAGE OF ITS AVERAGE NET FIXED ASSET, CALCULATED ON THE BASIS OF ITS INVESTMENT ON LAND, BUILDINGS, BUSES, MACHINERY AND EQUIPMENT, STORES AND SPARE PARTS AND ANY OTHER EXPENSES USED IN THE OPERATION OF BUS SERVICES UNDER THE FRANCHISE. DEPRECIATION WAS ALSO TAKEN INTO ACCOUNT.

THE PROFIT