XN000022-1989-03-13 — Page 5

MONDAY, MARCH 13, 1989

DB'S BRIEFED ON BUS COMPANY PROFIT CONTROL SCHEME

FOUR DISTRICT BOARDS AND OPERATION OF THE

THE TRAFFIC AND TRANSPORT COMMITTEES OF WERE TODAY (MONDAY) BRIEFED ON THE OBJECTIVES PROFIT CONTROL SCHEME AS APPLIED TO THE FRANCHISED BUS COMPANIES.

AT THE

MEETINGS

OF

THE

REGULAR COMMITTEES OF THE SAI KUNG, TAI PO, KOWLOON

FROM OFFICERS

TRAFFIC AND

TRANSPORT

CITY AND SHAM SHUI PO THE TRANSPORT DEPARTMENT EXPLAINED DISTRICT BOARDS, THAT THE MAIN OBJECTIVES OF THE PROFIT CONTROL SCHEME ARE TO:

*

ENSURE THAT PASSENGERS GET ADEQUATE AND RELIABLE SERVICES;

ENSURE PRICES;

THAT

PASSENGERS GET

THE

AT SERVICES

REASONABLE

*

FINANCIAL RETURN

ENSURE THAT SHAREHOLDERS GET A REASONABLE ON THEIR INVESTMENT, AND SO ENCOURAGE FURTHER INVESTMENT;

*

KEEP THE COMPANIES

*

FINANCIALLY

VIABLE SO

THAT THEY CAN

COMPETE WITH OTHER COMMERCIAL ORGANISATIONS FOR FUNDS;

MINIMUM

SUBSIDY ACHIEVE THE PRECEDING OBJECTIVES WITHOUT ANY DIRECT FROM PUBLIC FUNDS, AND WITH

INTERFERENCE FROM GOVERNMENT IN THE OPERATION AND MANAGEMENT OF THE COMPANIES.

IN

ΤΟ ENCOURAGE LONG-TERM THE PROFIT CONTROL SCHEME IS DESIGNED INVESTMENT IN RESPONSE TO PROJECTED DEMAND AND AVOID SUDDEN CHANGE THE LEVEL OF REQUIRED IMPROVEMENTS OR FARE LEVELS.

PROGRAMME SUBMITTED BY MEANS OF THE FORWARD PLANNING

BY THE THAT THE CAPITAL BUS COMPANIES EACH YEAR, THE GOVERNMENT CAN ENSURE

BUS COMPANIES ARE OF

PROPERLY JUSTIFIED AND EXPANSION PROPOSALS

DEMAND: AND PREVENT ANY UNNECESSARY SUFFICIENT TO MEET INCREASING

BY OVER-INVESTMENT

THE BUS COMPANIES TO EXPANSION AND DELIBERATE BOOST PROFITS.

AND THE

EXAMINED BY THE FINANCIAL MONITORING UNIT OF THE THE TRANSPORT

ALL FARE INCREASE APPLICATIONS ARE CAREFULLY TRANSPORT DEPARTMENT

BRANCH BEFORE CONSIDERATION BY ECONOMIC SERVICES ADVISORY COMMITTEE (TAC).

APPROVES FARE INCREASES ONLY THE GOVERNOR IN COUNCIL

AFTER MADE AND THAT THE BEING SATISFIED THAT PROPER EXAMINATION HAS BEEN LEVELS SOUGHT ARE FULLY JUSTIFIED.

ON

LEST

THE SECURITIES ORDINANCE PROVIDES THAT DETAILED INFORMATION THE FINANCE OF THE LISTED COMPANIES SHOULD BE KEPT CONFIDENTIAL, THE DISCLOSURE OF SUCH INFORMATION SHOULD AFFECT THEIR SHARE PRICES.

/HOWEVER, AS