XN000022-1995-02-08 — Page 3

- 2

-

the construction of a sewerage system; and

landscaping required for reprovisioning of public open space.

End/Wednesday, February 8, 1995

Proposed sale of CMB bus depot site in Wong Chuk Hang

In response to press enquiries with regard to the sale of a China Motor Bus (CMB) depot site, a Government spokesman clarified the purpose of Government's proposed amendments to the Public Bus Services Ordinance is to enable the Government to maintain public bus services in exceptional circumstances (for example, if a bus franchise is terminated) by taking temporary possession of the property used or kept by a franchised bus operator.

Under the existing legislation, the Government may take temporary possession of any property of a franchised bus company in the case of an emergency or revocation of a franchise, and the franchisee shall be entitled to compensation.

The Government's proposals, which have been endorsed by the Transport Advisory Committee, provide that:

(a)

(b)

In the event that a franchise is revoked, the provision in the existing legislation will apply except that the period of temporary possession may be extended up to four years;

In the event a franchise is not renewed, the Government may lease land- and buildings used or kept by a franchised bus company for a maximum of four years at a fair market rent. In addition the Government may purchase other bus-related assets such as buses and spare parts at a fair and reasonable price.

"The proposed amendments, if enacted, would apply to all franchised bus operators in exceptional circumstances specified and should not be taken as implying an intention by the Government to take over CMB's operations. In fact the Government is considering offering a new franchise to the company subject to new terms and conditions."

"There is no intention to change the present policy of encouraging private operators to provide franchised bus services. This policy has served Hong Kong well," the spokesman said.

End/Wednesday, February 8, 1995