XN000022-1991-03-13 — Page 7

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WEDNESDAY, MARCH 13, 1991

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HE STRESSED THAT THE PERMITTED RETURN WAS THE GROSS RETURN TWO BUS COMPANIES, SUBJECT TO CERTAIN COMPULSORY DEDUCTIONS INCLUDING INTEREST PAYMENTS.

"IN PRACTICE, THE NET RATE OF RETURN ACHIEVED IS LESS. FOR KMB IT HAS BEEN AROUND 13.4% FROM 1979 TO 1989. FOR CMB IT HAS BEEN ABOUT 14% OVER THE SAME PERIOD," HE SAID.

ON FARE INCREASES OF THE TWO BUS COMPANIES, THE SECRETARY FOR TRANSPORT POINTED OUT THAT IN RECENT YEARS, THE COSTS OF PUBLIC TRANSPORT OPERATIONS HAD INCREASED RAPIDLY IN REAL TERMS DUE TO A

VARIETY OF FACTORS.

THE KEY FACTORS, NAMELY THE TIGHT SUPPLY OF LABOUR AND AVERAGE WAGE LEVELS, WERE BEYOND THE OPERATORS' CONTROL.

MR LEUNG SAID THE FARE FOR AN AVERAGE KMB TRIP WAS $1.6 IN 1987. IT ROSE TO $2.24 IN 1990. NEARLY 60% OF THE DIFFERENCE IS ACCOUNTED FOR BY INCREASES IN STAFF COSTS.

IN SPITE OF INCREASING COSTS, THE FARES OF HONG KONG'S PUBLIC TRANSPORT SERVICES STILL COMPARED QUITE FAVOURABLY WITH MANY OTHER ASIAN CITIES, INCLUDING KUALA LUMPUR, SEOUL AND SINGAPORE.

MR LEUNG SAID TO KEEP FARES LOW, CONTINUOUS EFFORTS WERE BEING MADE TO MAINTAIN ECONOMIES IN FRANCHISED BUS AND FERRY OPERATIONS.

MR LEUNG SAID THE GOVERNMENT ALSO UNDERTOOK STUDIES INTO THE LONG-TERM FINANCIAL VIABILITY OF DIFFERENT MODES OF PUBLIC TRANSPORT, SEE HOW THEY SHOULD COMPLEMENT EACH OTHER, AND AVOID WASTEFUL DUPLICATION.

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RECENT EXAMPLES INCLUDE A CONSULTANCY STUDY ON THE EFFICIENCY THE PUBLIC TRANSPORT NETWORK IN NORTH RAST NEW TERRITORIES, COMPLETED IN 1990.

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MR LEUNG SAID THE GOVERNMENT WAS STUDYING THE CROSS-HARBOUR FERRY LINKS UP TO 2001, HAVING REGARD TO PLANNED RECLAMATIONS IN THE HARBOUR AND THE PROPOSED WESTERN HARBOUR CROSSING.

THE FUTURE OF HONG KONG AND YAUMATEI FERRY COMPANY'S INNER HARBOUR SERVICES AND HOW THEY COULD BE PUT TO FULLER USE WOULD BE COVERED IN THE STUDY, HE SAID.

THE SECRETARY FOR TRANSPORT STRESSED THAT THE FIVE FRANCHISED PUBLIC TRANSPORT COMPANIES WERE SUPERVISED BY THE GOVERNMENT THROUGH A WELL-ESTABLISHED MONITORING SYSTEM WHICH WAS SENSITIVE TO THE INTERESTS OF THE TRAVELLING PUBLIC.

THE SAFE OPERATION OF BUS AND FERRY SERVICES WAS GOVERNED BY. STRINGENT PROVISIONS IN LAW.

THE GOVERNMENT WAS ALSO EMPOWERED TO CONDUCT RANDOM SAFETY CHECKS AND REGULAR INSPECTIONS OF MAINTENANCE FACILITIES.

ON SERVICE DELIVERY, MR LEUNG SAID THE LAW REQUIRED THE FRANCHISED OPERATORS TO DRAW UP A FIVE-YEAR DEVELOPMENT PLAN FOR THE GOVERNMENT APPROVAL EACH YEAR.

/THE PREPARATION