XN000022-1992-06-02 — Page 2

TUESDAY, JUNE 2, 1992

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FRANCHISED BUS SERVICES ON HK ISLAND

THE GOVERNOR IN COUNCIL HAS APPROVED THAT A NEW FRANCHISE SHOULD BE OFFERED TO THE CHINA MOTOR BUS COMPANY (CMB) ΤΟ OPERATE A REDUCED NETWORK OF 90 ROUTES REQUIRING ABOUT 780 BUSES FOR TWO YEARS WITH EFFECT FROM SEPTEMBER 1, 1993.

ΤΟ PROMOTE HEALTHY COMPETITION IN THE PROVISION OF BUS SERVICES, TENDERS WILL BE INVITED FOR A THREE-YEAR FRANCHISE COMMENCING SEPTEMBER 1, 1993 TO OPERATE 26 ROUTES REQUIRING ABOUT 200 BUSES ON HONG KONG ISLAND.

A GOVERNMENT SPOKESMAN SAID TODAY (TUESDAY) THE DECISION HAD TAKEN FULL ACCOUNT OF THE OUTCOME OF A DEBATE IN THE LEGISLATIVE COUNCIL IN JANUARY, EXTENSIVE PUBLIC CONSULTATIONS AS WELL AS THE ADCICE OF THE TRANSPORT ADVISORY COMMITTEE.

STAY

"THE PUBLIC IN GENERAL ACCEPT THAT A FRANCHISING SYSTEM SHOULD AS FULL DEREGULATION MAY LEAD TO TRAFFIC CHAOS IN HK'S CROWDED ENVIRONMENT. THIS WILL ALSO ENSURE THAT LOSS-INCURRING BUT SOCIALLY DESIRABLE SERVICES COULD BE MAINTAINED."

UNDER THE NEW FRANCHISE, CMB'S EXISTING PROFIT CONTROL SCHEME WILL BE DISCONTINUED UPON EXPIRY ON AUGUST 31, 1993.

THE NEW FRANCHISE WILL INCLUDE THE FOLLOWING ADDITIONAL CONDITIONS TO STRENGTHEN THE MONITORING OF CMB'S OPERATIONS, TO EASE TRANSITION AND TO CATER FOR THE FUTURE EXISTENCE OF TWO MAIN BUS OPERATORS ON HK ISLAND :

CMB SHOULD ESTABLISH PASSENGER LIAISON GROUPS TO INTERACT WITH THE PUBLIC FOR THE PURPOSE OF ASSESSING AND IMPROVING ITS SERVICE STANDARDS;

CMB SHOULD PROVIDE A COMPUTER TERMINAL TO ENABLE THE COMMISSIONER FOR TRANSPORT TO OBTAIN UP-TO-DATE OPERATIONAL INFORMATION ON ITS SERVICES, SUCH AS AVAILABILITY AND DEPLOYMENT OF BUSES ON EACH ROUTE;

ANY PENSION FUND HELD BY CMB SHOULD BE CONTROLLED BY AN INDEPENDENT PROFESSIONAL TRUSTEE;

CMB IS REQUIRED TO DISCLOSE ITS ASSETS DISPOSE OF SUCH ASSETS WITHOUT THE COMMISSIONER FOR TRANSPORT;

AND SHOULD NOT CONSENT OF THE

ON EXPIRY OF THE PROFIT CONTROL SCHEME, THE BALANCE OF THE DEVELOPMENT FUND SHOULD BELONG TO PASSENGERS AND ANY REMAINING CREDIT BALANCE MUST BENEFIT PASSENGERS RATHER THAN CMB SHAREHOLDERS;

THE COMMISSIONER FOR TRANSPORT HAS THE POWER TO DIRECT CMB TO SHARE THE USE OF BUS STOPS, TERMINI AND THE FACILITIES WITH ANOTHER OPERATOR.

/THE SPOKESMAN