XN000022-1994-11-03 — Page 4

THURSDAY, NOVEMBER 3, 1994

3

DR DAVID LI:

1

COSTS GOVERNOR, THE AVERAGE INCREASE OF TRANSPORTATION

THE YEAR IS AROUND 12.65 PER CENT WHICH IS HIGHER THAN THIS

GENERAL

RATE BY 4 INFLATION

PERCENTAGE POINTS. ON THE ONE HAND, THE INVITES PRIVATE COMPANIES NOT TO ADJUST THEIR ANNUAL GOVERNMENT

WAGE INCREASES BEYOND THE INFLATION RATE. ON THE OTHER HAND, IT ALLOWS THE A 12.65 PER COST OF PUBLIC TRANSPORT TO EXCEED THE INFLATION RATE. CENT JUMP IN THE COST OF TRANSPORTATION ALONE CONTRIBUTED TO ABOUT PERCENTAGE POINT TO INFLATION. IN YOUR POLICY ADDRESS, SIR, YOU THE GOVERNMENT WOULD TRY TO IMPROVE THE QUALITY OF LIVING OF THE

PEOPLE. KONG

WHAT BASED ON THAT, WILL YOU INFORM THIS COUNCIL,

ΤΟ RAISE THE ECONOMIC RATIONALE IN ALLOWING THE TRANSPORT COMPANIES THEIR FARES BEYOND THE INFLATION RATE? IN ADDITION, WILL

YOU, HONG INFORM THIS COUNCIL HOW THE QUALITY OF LIVING OF THE ALSO PEOPLE CAN BE IMPROVED IN THESE CIRCUMSTANCES?

SAID

HONG ARE

SIR, KONG

GOVERNOR:

I AM NOT SURE WHETHER THE HONOURABLE MEMBER IS CALENDAR COMPARING LIKE WITH LIKE, AND WHETHER HE IS TAKING IDENTICAL PERIODS IN THE COMPARISON THAT HE IS MAKING BUT I WILL ASSUME THAT

INVARIABLY IS DOING SO BECAUSE HE IS A BANKER AND BANKERS ARE DON'T SAY ALWAYS INVARIABLY RIGHT ABOUT THE FIGURES.

DISTINGUISH

KE I

SET

OVER

I THINK THAT THE HONOURABLE MEMBER WOULD HIMSELF BETWEEN THE LEVEL OF FARES FOR TRAINS AND THE LEVEL OF FARES FOR BUSES. I BELIEVE I AM CORRECT IN SAYING THAT THE FARES BY THE MTRC AND BY THE KOWLOON-CANTON RAILWAY CORPORATION HAVE, THE YEARS, LAGGED BEHIND THE ANNUAL RATE OF INFLATION. IN ONE CASE I THINK THAT HAS BEEN SO FOR SIX YEARS, IN THE OTHER CASE I THINK IT HAS

WELL

IS A OVER TEN YEARS, AND THAT BEEN SO FOR

TRIBUTE TO THE MANAGERIAL COMPETENCE OF BOTH THOSE ORGANISATIONS. IT IS A TRIBUTE TO THEIR

IT IS A TRIBUTE TO THE PRODUCTIVITY INVESTMENT. THEIR WORKFORCE AGAINST THE BACKDROP OF THAT INVESTMENT.

ACHIEVED BY

WITH OUR BUSES, THERE HAS BEEN A SLIGHTLY DIFFERENT PARTLY BECAUSE OF THE AMOUNT OF STORY,

COSTS OPERATING

TAKEN BY I DON'T CRITICISE SALARIES, AND PARTICULARLY THE SALARIES OF DRIVERS. DRIVERS BECAUSE THEY NEED TO MAKE A LIVING JUST LIKE THE REST OF US.

PROPORTION OF BUT I THINK I AM RIGHT IN SAYING THAT THEIR PAY, AS A

HAS OVERALL COSTS, HAS BEEN ONE OF THE FACTORS - AND DOUBTLESS, FUEL

ONE

VERY OFTEN - IN MEANING THAT BUS COSTS ARE BEEN ANOTHER

BEING RATHER HIGHER THAN TRAIN COSTS. THERE HAS ALSO BEEN THE REQUIREMENT то INVEST, IN MANY CASES, IN NEW FLEET AND PARTICULARLY IN

VEHICLES CONDITIONED

THE IN ORDER TO PRESERVE, IMPROVE SERVICE TO PASSENGERS.

NEW AIR- OF QUALITY

PUBLIC

LIFE,

AND

I DON'T THINK THAT OVERALL IT IS RIGHT TO THINK THAT BUT TRANSPORT COSTS ARE A MAJOR FACTOR IN OUR INFLATION IN HONG KONG. OBVIOUSLY THE QUALITY

OF OF PUBLIC TRANSPORT AND THE COST TRANSPORT ARE IMPORTANT FACTORS IN THE OVERALL QUALITY OF THEY ARE ALSO IMPORTANT AND RELEVANT FACTORS IN DISCUSSING WHAT WE CAN IS A THAT DO ABOUT MANAGING TRAFFIC RATHER BETTER IN THE FUTURE

IN THE SUBJECT WHICH WE WILL BE OFFERING VIEWS TO THE COUNCIL ABOUT

CONSENSUS NEXT FEW WEEKS AND I AM SURE THAT THERE WILL BE A COMPLETE IN THE COUNCIL ON THE SORT OF MEASURES THAT WILL REQUIRE TO BE TAKEN.

-

THE HONOURABLE MEMBER IS RIGHT TO REMIND US OF THE IMPORTANCE

THE OF FARES IN PEOPLE'S COST OF LIVING BUT I DON'T THINK SITUATION IS QUITE ONE OF COST-PUSH IN THE WAY THAT HE MIGHT HAVE BEEN SUGGESTING.

/MR PANG