1
CMB's proposed development of Wong Chuk Hang bus depot
A Government spokesman noted that the China Motor Bus Company, Limited's (CMB) shareholders approved at an extraordinary meeting today (Tuesday) the disposal of CMB's depot site at Wong Chuk Hang Road, Aberdeen and a joint venture with Swire Properties for its redevelopment after August 31 this year.
The spokesman said CMB's bus depot site at Wong Chuk Hang Road cannot be disposed of under the company's current franchise conditions without the approval of the Commissioner for Transport.
However, legal advice is that the proposal to pre-sell the Wong Chuk Hang site does not infringe the terms of CMB's current franchise or the terms of the Public Bus Services Ordinance as long as the bus depot is maintained during the tenure of the current franchise, that is until August 31 this year.
CMB's franchise will expire on August 31 this year and the Government is considering offering a new franchise to the company commencing September this year subject to new terms and conditions.
Discussion on the new franchise terms is still in progress, and it is not appropriate at this stage for CMB to assume that the Wong Chuk Hang depot will not be required to support CMB's bus operations in future.
In the meantime, there is no question of the Government providing CMB with a replacement depot site to enable the company to dispose of its Wong Chuk Hang site.
It is Government's intention to amend the Public Bus Services Ordinance to strengthen Government's power to acquire the assets used or kept by franchised bus companies in order to maintain bus services to the public.
In the event that CMB's franchise is not renewed, the proposed new legislation will enable the Administration to use CMB's depots, including the Wong Chuk Hang site for a period of up to four years for the purposes of operating a public bus service.
End/Tuesday, February 7, 1995
No comments yet.
Private notes are available after approval.