XN000022-1995-02-15 — Page 23

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Motion debate on bus franchise and fare increase

Following is the speech by the Secretary for Transport Mr Haider Barma in the motion debate on KMB fare increase and CMB franchise in the Legislative Council tonight (Wednesday):

Mr President,

One of the pillars of our well established transport policy is to provide an efficient transport system in Hong Kong which meets the economic, social and recreational needs of our community. We achieve this goal by continuing to improve the availability and quality of public transport. In this respect, franchised buses play a vital role they now carry 3.5 million passengers a day or account for 34% of commuter trips.

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Our public transport system in Hong Kong ranks amongst the best in the world. We should not be shy to acknowledge this but, at the same time, we cannot afford to be complacent. I am sure Honourable Members will agree that our franchised operators should be encouraged to do their best to provide yet a better service. They have a public responsibility and, on the Administration's part, we must vigilantly exercise our monitoring and regulatory role.

Another basic tenet of our transport policy is that transport services are not subsidised. This policy has served us well. Our bus services are run by private companies, under franchise. They have, over the years, made sizeable investments and, as business ventures, they expect to be allowed to make a fair and reasonable return on their investments.

Inflation inevitably means that operating costs increase and, as a result, bus companies do submit applications for a fare increase. It is much better and less painful to have smaller adjustments annually than to have to face hefty increases over longer periods of time.

Because bus companies provide a public service, it is essential that they are accountable and indeed procedures are regularly reviewed and, when necessary, legislation amended to provide for the necessary checks, balances and safeguards.