XN000022-1994-07-26 — Page 8

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TUESDAY, JULY 26, 1994

AN ANALYSIS OF THE RATE OF INCREASE IN RESPECT OF INDIVIDUAL ROUTES INDICATES THE FOLLOWING:

RATE OF

PER CENT INCREASE

INCREASE IN MONEY TERMS

14 NON AIR- CONDITIONED SERVICES FOR DAILY COMMUTERS

18 SHORT DISTANCE AIR-CONDITIONED SERVICES FOR DAILY COMMUTERS

3 LONG DISTANCE SERVICES FOR DAILY COMMUTERS

3 RECREATIONAL

SERVICES

11.1 PER CENT TO 14.3 PER CENT

13.9 PER CENT TO 16.0 PER CENT

13.3 PER CENT TO 14.1 PER CENT

20 CENTS TO 40 CENTS

40 CENTS TO 60 CENTS

80 CENTS TO 90 CENTS

17.2 PER CENT TO 18.2 PER CENT

$1.0

THE PROPOSED FARE RISE HAS A NEGLIGIBLE IMPACT ON THE CONSUMER PRICE INDEX (A) A MERE 0.01 PER CENT.

—

IN CONSIDERING THE FARE INCREASE APPLICATION, MEMBERS TOOK INTO ACCOUNT THE INCREASE IN OPERATING COST, QUALITY OF SERVICES, FUTURE DEVELOPMENT PLAN, AND PUBLIC AFFORDABILITY AND ACCEPTABILITY.

PER

MEMBERS NOTED THAT OPERATING COSTS OF THE CITYBUS HAD INCREASED BY 23.6 PER CENT IN 1994 AND WERE FORECAST TO INCREASE BY 27.6 CENT IN 1995, MAINLY BECAUSE OF HIGHER STAFF COST, FUEL MAINTENANCE EXPENSES AND INTEREST AND DEPRECIATION CHARGES.

AND

MEMBERS HELD THE VIEW THAT CITYBUS IS A NEW OPERATOR AND WOULD REQUIRE A REASONABLE RETURN AS AN INCENTIVE FOR FURTHER IMPROVEMENT.

THEY WERE TOLD THAT, THE COMPANY HAS PLANS TO ACQUIRE MORE NEW BUSES TO COPE WITH THE EXPECTED GROWTH IN PATRONAGE IN THE NEXT FEW YEARS.

MEMBERS ALSO NOTED THAT SERVICES PROVIDED BY CITYBUS TO THE TRAVELLING PUBLIC HAVE BEEN CONSIDERED TO BE SATISFACTORY SINCE THE COMPANY COMMENCED NEW SERVICE IN SEPTEMBER 1993.

PASSENGERS TRAVELLING ON NON AIR-CONDITIONED ROUTES OF CITYBUS HAVE BEEN PAYING THE SAME FARES SINCE LAST APRIL AND THE ESTIMATED INFLATION RATE BETWEEN APRIL 1993 AND THIS AUGUST IS 12 PER CENT.

THE MEETING WAS ALSO BRIEFED ON THE COMPANY'S FORWARD PLANNING PROGRAMME BETWEEN 1994 AND 1998.

MEMBERS LEARNT THAT CITYBUS WAS PLANNING TO INTRODUCE NEW ROUTES AND IMPROVEMENT AND RATIONALISATION OF SERVICES TO MEET CHANGES AND DEMAND IN THE SOUTHERN DISTRICT.

/THE COMPANY'S