XN000022-1994-01-12 — Page 22

WEDNESDAY, JANUARY 12, 1994

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MORE PUBLIC INPUT INTO FARE DETERMINATION

THE

CORPORATION

KOWLOON-CANTON

RAILWAY

GOVERNMENT WILL ASK THE (KCRC) AND THE MASS TRANSIT RAILWAY CORPORATION (MTRC) TO PUT THEIR FARE INCREASE PROPOSALS TO THE TRANSPORT ADVISORY COMMITTEE FOR EXAMINATION AND ADVICE.

THIS IS ONE. ADDITIONAL MEASURE TO ENHANCE THE TWO CORPORATIONS' ACCOUNTABILITY AND TRANSPARENCY IN THE PROCESS OF FARE DETERMINATION.

THE SECRETARY FOR TRANSPORT, MR HAIDER BARMA, IN THE MOTION DEBATE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) ON FARE INCREASES OF THE TWO RAILWAY CORPORATIONS, SAID OTHER MEASURES INCLUDED CONSULTING MORE WIDELY AND EXPLAIN MORE FULLY THE REASONS BEHIND THEIR PROPOSED FARE REVISIONS AND COMPLYING WITH THE GOVERNOR'S REQUEST FOR FULLER DISCLOSURE ON FINANCIAL AND OPERATIONAL INFORMATION.

BOTH CORPORATIONS HAVE ALREADY STARTED TO EXAMINE WAYS OF PROVIDING MORE INFORMATION TO THE LEGISLATIVE COUNCIL AND THE GENERAL PUBLIC IN THIS RESPECT.

THE TWO CORPORATIONS HAVE CONSCIENTIOUSLY MAINTAINED FARES AT AFFORDABLE LEVELS WITH ANNUAL INCREASES BELOW INFLATION, AND HAVE SHOWN WILLINGNESS TO CONSULT AND OBTAIN FEEDBACK.

"THE ADMINISTRATION THEREFORE SEES NO NEED WHATSOEVER TO AMEND EXISTING LEGISLATION TO REQUIRE APPROVAL FOR FARE ADJUSTMENTS FROM THE EXCO (EXECUTIVE COUNCIL) AND LEGCO,"

MR BARMA SAID SINCE ITS COMMISSIONING IN 1980, MTR FARES HAD INCREASED BY AN AVERAGE OF 7.6 PER CENT PER ANNUM AGAINST THE AVERAGE ANNUAL INCREASE IN CONSUMER PRICE INDEX OF 8.6 PER CENT OVER THE SAME PERIOD.

SIMILARLY, OVER THE PAST SIX YEARS, THE KCR FARES HAD INCREASED BY AN AVERAGE OF 7.5 PER CENT PER ANNUM OR 2.4 PER CENT POINTS BELOW INFLATION.

EVEN LIGHT RAIL TRANSIT FARES, WITH AN AVERAGE 9.4 PER CENT PER ANNUM, HAD BEEN HALF A PERCENTAGE INFLATION SINCE IT BEGAN RUNNING IN 1988, HE SAID.

INCREASE OF POINT BELOW

MR BARMA POINTED OUT THAT BOTH MTRC AND KCRC WERE ESTABLISHED TO OPERATE ON PRUDENT COMMERCIAL PRINCIPLES BASED ON THE FUNDAMENTAL PHILOSOPHY THAT PUBLIC TRANSPORT SERVICES SHOULD BE RUN WITHOUT ANY SUBSIDY FROM THE GOVERNMENT OR THE TAXPAYER.

MR BARMA SAID THE RAILWAY SYSTEMS HAD BEEN RATED AMONG THE BEST IN THE WORLD IN TERMS OF SAFETY AND VALUE FOR MONEY.

SYSTEMS THAT

THOSE

"THERE ARE MANY EXAMPLES WORLDWIDE OF RAILWAY HAVE DETERIORATED DUE TO POLITICAL CONSTRAINTS ON FARES BECAUSE AUTHORITIES CONCERNED DO NOT HAVE FARE AUTONOMY.

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