XN000022-1991-12-10 — Page 8

7

TUESDAY, DECEMBER 10, 1991

HONG KONG WERE SAFE, RELIABLE

MR LEUNG SAID THE TWO RAILWAY CORPORATIONS IN REQUIRED UNDER THEIR RESPECTIVE ORDINANCES TO PROVIDE AND EFFICIENT RAILWAY SERVICES, AND WERE EMPOWERED BY LAW то SET THEIR OWN FARES.

IN VIEW OF THIS, MR LEUNG SAID THERE WAS AN IMPRESSION CONSUMER INTERESTS MIGHT BE SACRIFICED TO PROFIT MAXIMISATION,

THAT

THE

EXPLAINING THE EXTENT OF GOVERNMENT MONITORING, MR LEUNG SAID THE BOARDS OF DIRECTORS OF THE TWO CORPORATIONS WERE APPOINTED BY GOVERNOR FROM A CROSS-SECTION OF THE COMMUNITY WITH THE CHAIRMEN APPOINTED BY THE GOVERNOR.

"THEIR RESPONSIBILITY IS NOT ONLY COMMERCIAL ALSO CONSUMER INTERESTS AND EXPECTATIONS," HE SAID.

ON SAFETY, MR LEUNG SAID BY ANY INTERNATIONAL RAIL CORPORATIONS HAD AN ENVIABLE RECORD FOR SAFETY.

ALSO

PRUDENCE, BUT

STANDARDS, BOTH

"THE LAW ALSO PROVIDES FOR THEIR SAFE OPERATIONS TO BE CHECKED AND FOR ANY ACCIDENTS TO BE INVESTIGATED BY INDEPENDENT GOVERNMENT APPOINTED INSPECTORS, HE SAID.

"

WITH REGARD TO FINANCIAL CONTROL, MR LEUNG SAID APART FROM REQUIRING THE TWO CORPORATIONS TO SUBMIT THEIR ANNUAL REPORTS AND AUDITED ACCOUNTS TO THE FINANCIAL SECRETARY FOR TABLING IN THE LEGISLATIVE COUNCIL, ANY INVESTMENT BY THE CORPORATIONS MIGHT ONLY DONE IN SUCH MANNER AS THE FINANCIAL SECRETARY APPROVED.

BE

KOWLOON- RAILWAY

SUBJECT TO THE APPROVAL OF THEIR BOARDS OF DIRECTORS, CANTON RAILWAY CORPORATION (KCRC) AND MASS TRANSIT CORPORATION (MTRC) ARE ABLE TO RAISE FUNDS AND SECURE LOANS FOR THE DEVELOPMENT OF THEIR SERVICES.

"THIS HIGH DEGREE OF FINANCIAL AUTONOMY HAS ENABLED BOTH CORPORATIONS TO ACHIEVE HIGH INTERNATIONAL CREDIT RATINGS. THIS MEANS BETTER BORROWING TERMS AND LOWER COSTS OF FUNDS AND HELP CONTAIN OPERATING COSTS AND FARE LEVELS,' HE SAID.

TH

MR LEUNG SAID ALTHOUGH THE TWO CORPORATIONS WERE EMPOWERED TO DETERMINE THEIR OWN FARES, IT HAD BEEN THE ESTABLISHED PRACTICE FOR THE GOVERNOR-IN-COUNCIL TO BE INFORMED BEFORE ANY FARE REVISIONS WERE

IMPLEMENTED.

OF

ON THE ROLE OF THE TRANSPORT ADVISORY COMMITTEE (TAC), MR LEUNG SAID IT WAS CONSULTED ON THE BROAD OPERATIONAL RESPECTS RAIL SERVICES, INCLUDING INTEGRATION WITH OTHER PUBLIC TRANSPORT MODES.

"THE TRANSPORT COMPLAINTS UNIT OF THE TAC ALSO RECEIVES AND ACTS UPON PUBLIC COMPLAINTS AND SUGGESTIONS REGARDING RAIL SERVICES.

"TO STRENGTHEN THEIR MUTUAL LINKS, THERE IS CROSS MEMBERSHIP BETWEEN THE TAC AND THE BOARDS OF THE TWO CORPORATIONS," HE SAID.

/MR LEUNG