XN000022-1986-07-01 — Page 4

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TUESDAY, JULY 1, 1986

DETAILS OF THE KOWLOON-CANTON RAILWAY CORPORATION (AMENDMENT) BILL 1986 WERE ANNOUNCED TODAY (TUESDAY) BY DEPUTY SECRETARY FOR TRANSPORT, MR DAVID H.T. LAN.

THE $1.16 BILLION CONTRACT FOR PHASE OF THE SYSTEM - A LIGHT RAIL LINK BETWEEN TUEN MUN AND YUEN LONG TO BE IN OPERATION IN AUGUST 1988 - WAS AWARDED LAST YEAR TO AN AUSTRALIAN CONSORTIUM HEADED BY LEIGHTON CONTRACTOR (ASIA) LTD AND THE METROPOLITAN TRANSIT AUTHORITY OF VICTORIA, AUSTRALIA.

MR LAN SAID THAT IN LINE WITH THE PRESENT POLICY TOWARDS THE KOWLOON-CANTON RAILWAY AND THE MASS TRANSIT RAILWAY, THE KCRC WOULD HAVE POWERS TO DETERMINE FARES, ROUTES AND FREQUENCIES OF BOTH THE LRT AND INTERNAL BUS SERVICES.

HE ADDED THAT CONSUMER INTERESTS IN THE SETTING OF FARES AND PROVISION OF SERVICES WOULD BE PROTECTED BY KCRC'S BOARD WHICH CONSISTED OF A MAJORITY OF UNOFFICIALS WHO WERE DRAWN FROM THE LEGISLATIVE COUNCIL AND OTHER ADVISORY BODIES.

IT WAS THEREFORE NOT NECESSARY FOR THE CORPORATION TO BE SUBJECT TO THE SAME KIND OF CONTROLS ON FARES, ROUTES AND FREQUENCIES WHICH APPLIED TO SOME OTHER PUBLIC TRANSPORT OPERATORS.

FARES BETWEEN TUEN MUN AND YUEN LONG ON THE LRT WOULD ONLY BE MARGINALLY HIGHER THAN THE CURRENT KMB BUS SERVICE. THE SMALL PREMIUM PROVIDED FOR A FAST AND MODERN MODE OF TRANSPORT WITH AIR-CONDITIONED COACHES. AND BECAUSE IT WAS ELECTRONICALLY OPERATED,

IT WOULD REDUCE POLLUTION OF THE ENVIRONMENT.

MR LAN SAID THE ACCOUNTS OF KCRC WERE MADE PUBLIC AND THE CORPORATION HAD A GOOD RECORD OF REASONABLE FARE POLICY.

HE WENT ON : +UNLIKE THE MTR WHICH IS BUILT AS AN ADDITIONAL MODE SERVING BUSY CORRIDORS OF HIGH PASSENGER DEMAND, THE LRT IS TO BE BUILT AS THE PRIME PEOPLE-MOVER IN THE GROWING REGION OF THE WESTERN NEW TERRITORIES WHERE THERE IS INSUFFICIENT INTERNAL DEMAND TO SUPPORT A VARIETY OF MODES.

+TO ALLOW UNRESTRICTED COMPETITION FROM OTHER MODES WOULD SERIOUSLY UNDERMINE THE VIABILITY OF THE PROJECT. THE LRT WAS DESIGNED AS AN ALTERNATIVE TO CONVENTIONAL ROAD PASSENGER TRANSPORT. THE LRT AND ITS FEEDER BUSES WILL OPERATE A COMPREHENSIVE NETWORK OF ROUTES PROVIDING SUFFICIENT CAPACITY TO COPE WITH TRAFFIC DEMAND WITHIN THE SERVICE AREA.

+ALLOWING UNRESTRICTED COMPETITION FROM OTHER MODES WOULD ERODE THE POTENTIAL TRAFFIC OF ALL MODES RESULTING IN PRESSURE TO RAISE FARES.+

/A CLAUSE