XN000022-1992-01-22 — Page 3

WEDNESDAY, JANUARY 22, 1992

PUBLIC VIEWS ON FRANCHISED BUS SERVICES WELCOMED

THE GOVERNMENT WELCOMES AND IS ALIVE TO PUBLIC VIEWS AND SUGGESTIONS ON THE BROAD TERMS AND DIRECTIONS OF FUTURE DEVELOPMENT OF FRANCHISED BUS SERVICES, THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING IN THE MOTION DEBATE ON FRANCHISED BUS SERVICES ON HONG KONG ISLAND, MR LEUNG SAID THESE VIEWS WOULD BE CAREFULLY AND FULLY CONSIDERED BEFORE REACHING ANY NEW FRANCHISE AGREEMENT WITH BUS OPERATORS ON HONG KONG ISLAND.

MR LEUNG SAID THE TWO-YEAR FRANCHISE EXTENSION SOUGHT BY CHINA MOTOR BUS (CMB) WAS UNDER EXAMINATION. ·

"THE DEBATE TODAY PROVIDES US WITH VERY USEFUL INDICATORS FOR POLICY FORMULATION. WE HOPE TO CONSULT MORE FULLY BEFORE THE MAIN TERMS ARE FINALISED," HE SAID.

"MEMBERS OF THE PUBLIC ARE WELCOME TO PRESENT THEIR OPINIONS TO THE GOVERNMENT DIRECT OR TO THE TRANSPORT ADVISORY COMMITTEE: OR EXPRESS THEM THROUGH THE DISTRICT BOARDS AND THE MASS MEDIA.

MR LEUNG SAID IT WAS ESTABLISHED POLICY FOR THE TRANSPORT ADVISORY COMMITTEE (TAC) TO BE CONSULTED ON ALL FRANCHISES RELATED PUBLIC TRANSPORT.

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"WHEN SEEKING TAC'S ADVICE ON THE FUTURE OF CMB'S FRANCHISE, WE WILL ENSURE THAT THE COMMITTEE IS GIVEN THE FULL RANGE OF PUBLIC VIEWS ON THE SUBJECT, HE SAID.

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MR LEUNG NOTED THAT FROM TODAY'S DEbate, IT SEEMED MAJORITY VIEW WAS IN FAVOUR OF A FRANCHISE SYSTEM AND DID RADICAL CHANGES SUCH AS DE-REGULATION.

THAT THE

NOT FAVOUR

"FOR PUBLIC BUS SERVICES, OUR PRESENT POLICY IS TO STAY WITH THE FRANCHISE SYSTEM. THE ADVANTAGES INCLUDE ECONOMIES OF SCALE, EFFECTIVE CO-ORDINATION BY GOVERNMENT TO ENSURE ECONOMIC USE OF OUR TRANSPORT INFRASTRUCTURE, AND A STABLE ENVIRONMENT FOR OPERATORS ΤΟ RAISE CAPITAL AND TO CONTINUE WITH INVESTMENTS NECESSARY FOR MEETING PASSENGER NEEDS WITHOUT PUBLIC SUBSIDY.

"THESE CONTRIBUTE TOWARDS THE PROVISION OF A BALANCED NETWORK UNDER WHICH MORE REMOTE AREAS ARE ALSO WELL SERVED BY PUBLIC TRANSPORT.

"WITHOUT THE CROSS-SUBSIDISATION MADE POSSIBLE BY A FRANCHISE SYSTEM, SOCIALLY NEEDED BUT LOSS-INCURRING SERVICES COULD NOT BE MAINTAINED, HE SAID.

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MR LEUNG POINTED OUT THAT TOTAL DE-REGULATION WAS SIMPLY NOT PRACTICABLE IN HONG KONG.

/"GIVEN OUR