XN000022-1994-11-23 — Page 31

WEDNESDAY, NOVEMBER 23, 1994

14

THE

MEMBERS WILL RECALL THAT AMONG THE 4 FRANCHISED BUS COMPANIES, ONLY KMB IS STILL SUBJECT TO A FORMAL PROFIT CONTROL SCHEME. ADMINISTRATION'S INTENTION IS TO ABOLISH THIS SCHEME FOR KMB AS SOON AS POSSIBLE. HOWEVER, SINCE THE SCHEME 15 ENSHRINED IN THE KMB FRANCHISE, WE CANNOT ABOLISH IT UNILATERALLY. WE HAVE STARTED DISCUSSING THE MATTER WITH KMB. WHILST THE SCHEME PERMITS A MAXIMUM RATE OF RETURN OF 16% ON AVERAGE NET FIXED ASSETS, THIS DOES NOT GUARANTEE SUCH A LEVEL OF RETURN FOR THE COMPANY. THIS IS ILLUSTRATED BY THE FACT THAT IN THE LAST TWO YEARS, KMB FARE INCREASE APPLICATIONS WERE DETERMINED ACCORDING TO A NUMBER OF FACTORS SUCH AS PERFORMANCE, COMMITMENT TO FURTHER INVESTMENT IN SERVICE IMPROVEMENTS, OPERATING COSTS, INFLATION LEVELS AND PUBLIC ACCEPTABILITY. THESE FACTORS CONTINUE TO BE ADOPTED BY THE ADMINISTRATION IN ASSESSING FUTURE INCREASE APPLICATIONS.

WILL

FARE

MR PRESIDENT, THE ADMINISTRATION WILL CONSULT THE TRANSPORT ADVISORY COMMITTEE AND THE TRANSPORT PANEL OF THIS COUNCIL ON PROPOSALS TO AMEND THE PUBLIC BUS SERVICES ORDINANCE TO DEAL WITH THE ISSUES OF LAND SALE PROFITS AND ABOLITION OF THE PROFIT CONTROL. SCHEME.

HOME OWNERSHIP SCHEME FLATS

BY

FOLLOWING IS A QUESTION BY THE HON HUI YIN-FAT AND A REPLY ACTING SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR CANICE MAK, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):

THE

QUESTION : ACCORDING TO THE ELIGIBILITY CRITERIA FOR GREEN FORM APPLICANTS OF HOME OWNERSHIP SCHEME (HOS) FLATS, SUCCESSFUL APPLICANTS ARE REQUIRED, INTER ALIA, TO SURRENDER THEIR BXISTING PUBLIC RENTAL FLATS UPON OCCUPATION OF HOS FLATS. WILL THE GOVERNMENT INFORM THIS COUNCIL

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(A) OF THE TOTAL NUMBER OF HOS FLATS (INCLUDING PRIVATE SECTOR PARTICIPATION SCHEME FLATS} PRODUCED SINCE 1978.

WHEN THE SCHEME WAS FIRST INTRODUCED, AND THE TIME THE MOST RECENT PHASE OF HOS FLATS WAS PUT ON SALE; HOW MANY OF THESE FLATS HAVE NOT BEEN SOLD AND WHAT MEASURES DOES THE GOVERNMENT HAVE TO ENSURE THAT FULL USE IS MADE OF THOSE FLATS WHICH REMAIN UNSOLD;

(B)

OF THE TOTAL NUMBER OF PUBLIC RENTAL FLATS REPOSSESSED BY THE GOVERNMENT DURING THE SAME PERIOD, AND WHETHER THE GOVERNMENT HAS TAKEN MEASURES TO CLOSELY MONITOR THE OPERATION OF THE WHOLE SET OF PROCEDURES AND FORMALITIES RELATING TO THE SURRENDER OF SUCH FLATS;

AND

/(C) WHETHER THE