XN000022-1993-02-17 — Page 28

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WEDNESDAY, FEBRUARY 17, 1993

THE

MOREOVER, THE GOVERNMENT WILL NOT PROVIDE ANY GUARANTEE TO CORPORATIONS. BORROWINGS WITHOUT THE APPROVAL OF THE LEGCO, MR LEUNG

SAID.

ON RAILWAY SAFETY,

MR LEUNG SAID THERE WAS A LOCAL RAILWAY INSPECTORATE APPOINTED BY THE GOVERNOR TO UNDERTAKE SAFETY INSPECTIONS AND ΤΟ INVESTIGATE ACCIDENTS.

REPRESENTATIVES OF THE UK RAILWAY INSPECTORATE ALSO VISIT HONG KONG REGULARLY TO CARRY OUT RAILWAY INSPECTIONS AND TO REVIEW MATTERS CONCERNING SAFETY.

ABOVE ALL, THE TRAVELLING PUBLIC PROVIDE THE MOST DIRECT AND EFFECTIVE MONITORING. THIS IS DONE THROUGH AN EXTENSIVE NETWORK ESTABLISHED BY THE TWO CORPORATIONS INCLUDING PASSENGERS LIAISON GROUPS, CUSTOMER SERVICE CENTRES AND REGULAR CUSTOMER SURVEYS.

SUCH DIRECT COMMUNICATION HAS PRODUCED USEFUL RESULTS. INCLUDE IMPROVEMENTS TO TRAIN FREQUENCIES, AIR CONDITIONING, ADDRESS SYSTEMS, PASSENGER QUEUING AND TICKETING, AND FACILITIES.

THESE

PUBLIC STATION

FOR THE PAST THREE YEARS, THE TWO CORPORATIONS HAVE SPENT A TOTAL OF $1.2 BILLION ON SUCH IMPROVEMENTS.

IN ADDITION TO THE EXISTING COMPLAINTS PROCEDURES, THE GOVERNOR IN COUNCIL HAS RECENTLY DECIDED TO EXTEND THE JURISDICTION OF THE COMMISSIONER FOR ADMINISTRATIVE COMPLAINTS TO INCLUDE THE TWO

CORPORATIONS.

IN RESPONSE ΤΟ CONCERNS ON THE CORPORATIONS ABILITY то DETERMINE FARES, MR LEUNG EXPLAINED THAT THE FUNDAMENTAL REASON FOR RAVING PUBLIC CORPORATIONS WAS TO ENABLE THEM TO GENERATE SUFFICIENT REVENUE TO COVER EXPENDITURE, AND TO ALLOW FOR A RESERVE TO MEET IMPROVEMENTS AND EXPANSIONS.

THIS ENSURES THAT THE TWO CORPORATIONS DO NOT REQUIRE ANY GOVERNMENT SUBSIDY.

"GIVEN

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THESE CONSIDERATIONS, MR LEUNG SAID, "THE TWO CORPORATIONS HAVE BEEN SUCCESSFUL IN DEVELOPING A FARE POLICY OF MODEST ANNUAL INCREASES, GENERALLY LOWER THAN INFLATION,

"IN SETTING THEIR FARES, THE CORPORATIONS MUST ALSO ENSURE THAT THEIR COMPETITIVE EDGE VIS-A-VIS OTHER TRANSPORT MODES IS NOT ERODED. THIS ACTS AS AN EFFECTIVE CONSTRAINT ON PARF INCREASES, MR LEUNG EMPHASISED.

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**THUS, SINCE 1980, MTR FARES HAVE INCREASED BY AN AVERAGE OF 7.6 PER CENT PER ANNUM COMPARED WITH AN ANNUAL INCREASE OF 9 PER CENT IN CONSUMER PRICE INDEX (A).

KOR FARES HAVE ALSO BERN KEPT BELOW

..

INFLATION IN THE PAST FIVE YEARS, MR LEUNG SAID.

OVERALL, MR LEUNG SAID THE CORPORATIONS TEAD BEEN OPERATING SUCCESSFULLY SINCE THEIR ESTABLISHMENT. THIS IS ILLUSTRATED BY THEIR EFFICIENT SERVICE, SAFETY RECORDS, IMPROVEMENT PROGRAMMES AND REASONABLE FARES, WHICH COMPARE VERY FAVOURABLY WITH SYSTEMS ELSEWHERE IN THE WORLD.

"ANY UNWARRANTED