XN000022-1995-05-10 — Page 9

Public Bus Services (Amendment) Bill 1995

The Governor-in-Council has agreed that the Public Bus Services (Amendment) Bill 1995 should be introduced into the Legislative Council on May 24.

A spokesman for the Transport Branch said today (Wednesday) that the proposed amendments were aimed at strengthening the Government's powers to maintain franchised bus services, for example, in situations where a franchised bus company ceased to operate.

"However, Government has no intention of taking over public bus services which should best be left in the hands of private enterprises," he added.

The spokesman explained that when a franchised bus company failed to maintain a proper and efficient bus service, there were provisions in the Public Bus Services Ordinance for the Governor-in-Council to revoke its franchise and to take temporary possession of its property for a period not exceeding one year.

He said this was insufficient for present-day circumstances as the Government would need a longer period of temporary possession to select a replacement operator and to allow the replacement operator sufficient time to gear up for the operation of a franchised bus service.

said.

"We propose to extend the one-year period to a maximum of three years," he

The spokesman said the Government was also seeking powers to lease or purchase from bus companies assets considered absolutely necessary to maintain bus operations, for example, buses and spare parts.

"We do not propose to buy land and buildings," he said. "Instead these would be leased."

The spokesman said compensation based on an open market rental or value would be paid to bus companies and third party owners. As regards land and buildings, the rental would be calculated with reference to the most favourable land use permitted under the Crown lease.

He said the Government also proposed to seek similar powers to cover the situation where a franchise was not renewed because under such circumstances it would be necessary for the Government to step in to maintain bus services to the public.