XN000022-1994-02-22 — Page 17

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TUESDAY, FEBRUARY 22, 1994

TAC ENDORSES 12.9% FARE RISE FOR KMB

THE TRANSPORT ADVISORY COMMITTEE, AFTER LENGTHY DISCUSSIONS, RECOMMENDATION THAT TODAY (TUESDAY) ENDORSED THE ADMINISTRATION'S KOWLOON MOTOR BUS (KMB) FARES BE RAISED BY A WEIGHTED 12.9% FROM APRIL 1, A REDUCTION OF 6.7% ON THE 19.6% INCREASE SOUGHT BY THE COMPANY.

CAREFULLY THE ONE HAND EFFICIENT AND ACCEPTABLE

IN THEIR DELIBERATIONS, MEMBERS CONSIDERED NEED TO MAKE THE FARE INCREASE ACCEPTABLE TO THE PUBLIC ON AND ON THE OTHER HAND TO ENSURE THAT AN STANDARD OF SERVICE WILL BE MAINTAINED.

THE

RECOMMENDED

RATE OF

IF INCREASE,

APPROVED RETURN

BY THE ON ITS THAN

GOVERNOR IN COUNCIL, WILL GIVE KMB A 11.5% RATE OF AVERAGE NET FIXED ASSETS, WHICH IS 4.5 PERCENTAGE POINTS LOWER THE MAXIMUM PERMITTED RETURN OF 16% UNDER THE SCHEME OF CONTROL.

IN ENDORSING THE RECOMMENDED RATE OF INCREASE, MEMBERS NOTED 1994, THAT KMB'S OPERATING COSTS ARE EXPECTED TO INCREASE BY 18.1% IN

AND MAINTENANCE ATTRIBUTABLE MAINLY TO INCREASES IN WAGES, PRICES, COSTS TO MEET SAFETY AND ROAD WORTHINESS STANDARDS.

MEMBERS ALSO NOTED THAT KMB'S PROPOSAL TO INTRODUCE 17 ROUTES MAINLY TO NEW DEVELOPMENTS IN TIN SHUI WAI, TSEUNG KWAN O EAST KOWLOON IN 1994/95 AND TO IMPROVE BUS FREQUENCY ON WILL ALSO HAVE A BEARING ON THE INCREASE IN OPERATING COSTS.

NEW AND

ROUTES

KMB

HAVING CONSIDERED THESE FACTORS AND THE EFFORTS MADE BY TO REDUCE COSTS AND INCREASE NON-FAREBOX REVENUES FROM SOURCES SUCH AS ADVERTISING, MEMBERS REASONABLE.

THE

AS

AGREED

WELL AS AN AVERAGE

PUBLIC

AFFORDABILITY

AND

12.9%

FARE

INCREASE

ΤΟ BE

ACCEPTABILITY,

FAIR AND

ON RISE

THE RECOMMENDATION, MEMBERS NOTED THAT IN PUTTING FORWARD

OF THE INCREASE MINDFUL OF THE IMPACT ADMINISTRATION IS INFLATION AND PEOPLE'S LIVELIHOOD. THE RECOMMENDED RATE OF FARE WOULD ONLY INCREASE THE CONSUMER PRICE INDEX A BY A NOMINAL 0.18%.

AT THE MEETING, MEMBERS WERE ALSO BRIEFED ON KMB'S FIVE-YEAR FORWARD PLANNING PROGRAMME FOR 1994-1998.

UNDER THE PROGRAMME, KMB PROPOSED TO INCREASE ITS FLEET SIZE FOR BY 324 BUSES TO 3,505 AT THE END OF 1998, TO MEET GROWING DEMAND BUS SERVICES.

ON OTHER AGENDA ITEMS, MEMBERS NOTED THE DECISION BY KOWLOON CANTON RAILWAY CORPORATION NOT TO INCREASE PASSENGER FARE THIS YEAR.

THEY WERE ALSO BRIEFED BY MASS TRANSIT RAILWAY

CORPORATION

ON THEIR FARE STRATEGIES.

THE

BRIEFINGS

BY

THE

CHAIRMEN

OF

THE

TWO

RAILWAY WITH THE

CORPORATIONS TODAY MARKED THE START OF A NEW RELATIONSHIP

TAC.

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