XN000022-1994-06-22 — Page 24

WEDNESDAY, JUNE 22, 1994

WHAT I HAVE JUST SAID IS A STRONG COMMITMENT TO THE MAINTENANCE AND EXPANSION OF THE MTRC SERVICE.

FOR THIS, THE PRICE WILL BE THAT PASSENGERS SHOULD CONTINUE TO PAY IN REAL TERMS THE FARES THEY ARE PAYING TODAY. TO PUT IT IN OTHER WORDS, THEY SHOULD READILY ACCEPT THE HABIT OF FARE INCREASES IN LINE WITH INFLATION. IF THE PUBLIC CAN ACCEPT THIS PRINCIPLE, OUR MTR WILL BE ABLE TO GROW TO MEET THEIR NEEDS IN THE FUTURE. OUR MTRC IS NOT AN EXPENSIVE SYSTEM TO TRAVEL ON. IT IS CERTAINLY EXTRAORDINARILY GOOD VALUE FOR MONEY.

THE MOTION CALLS ON US TO ASK THE MTRC TO EXPLAIN THE RATIONALE BEHIND THE SETTING OF THE AVERAGE INTERNAL RATE OF RETURN. I HAVE DONE THIS VERY BRIEFLY, AND THE MTRC WILL EXPLAIN IN DETAIL LATER.

THAT

AS TO THE LATTER PART OF THE PROPOSITION IN THE MOTION - THE MTRC SHOULD BE ASKED TO CONSIDER ABOLISHING REGULAR FARE INCREASES IN LINE WITH INFLATION - I HAVE TRIED TO EXPLAIN BY ANALOGY WITH THE PROBLEMS IN OTHER METRO RAILWAY SYSTEMS WHY THAT IN FACT DOES NOT SERVE THE BEST INTERESTS OF THE PASSENGERS OR THE PUBLIC AT LARGE. I FEEL BOUND THEN, MR PRESIDENT, то INVITE MEMBERS ΤΟ CONSIDER ENCOURAGING THE MTRC TO CONTINUE ITS PRUDENT COMMERCIAL PRINCIPLE

AND CONTINUE TO MAINTAIN ITS FARE LEVELS IN REAL TERMS, SO AS TO SAFEGUARD THE INTEREST OF PASSENGERS.

THE DEBATE GOING ON ALL AROUND US ABOUT SUBSIDISED STATE ENTERPRISES MUST BE FAMILIAR TO MEMBERS. FROM THE STEPPES OF MONGOLIA TO THE MOUNTAINS OF ALBANIA, GOVERNMENTS WHO FOR DECADES HAVE TAKEN SUBSIDISED STATE ENTERPRISES AS A MATTER OF FAITH ARE NOW MOVING TOWARDS TRUE COMMERCIAL OPERATION. THIS IS A VERY ODD TIME FOR HONG KONG OF ALL PLACES TO THINK OF MOVING IN THE OPPOSITE DIRECTION.

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IN THAT NOTE, MR PRESIDENT, I REGRETFULLY OPPOSE THE MOTION, WHILE ACCEPTING THE SPIRIT OF THE FIRST PART OF IT.

SECRETARY FOR TRANSPORT ON MTRC MOTION

FOLLOWING IS THE SPEECH BY THE SECRETARY FOR

TRANSPORT,

MR

HAIDER BARMA,

IN THE LEGISLATIVE COUNCIL MOTION DEBATE ON RATE OF RETURN OF THE MASS TRANSIT RAILWAY CORPORATION:

MR PRESIDENT,

1

THE HONOURABLE LAU CHIN SHEK HAS BEEN EXTREMELY PERSISTENT IN HIS PLEAS TO SEEK THE MONITORING OF MTRC FARES. AS SOME MEMBERS HAVE POINTED OUT, THIS IS THE THIRD MOTION DEBATE HE HAS PROPOSED WITHIN THE LAST 17 MONTHS. ON THE OTHER HAND, MY PREDECESSORS AND I HAVE BERN EQUALLY CONSISTENT IN EXPLAINING THE ADMINISTRATION'S APPROACH AND POLICY. THE SIMPLE HOME TRUTH THAT MUST BE UNDERLINED AND REITERATED IS THE GOVERNMENT'S FUNDAMENTAL POLICY THAT ALL OUR PUBLIC TRANSPORT SERVICES SHOULD BE RUN WITHOUT SUBSIDY, THIS PHILOSOPHY HAS SERVED US WELL AND I AM CONVINCED WILL CONTINUE TO BENEFIT THE TRAVELLING PUBLIC IN THE YEARS AHEAD.

/BECAUSE THIS