XN000022-1995-11-29 — Page 35

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Public Bus Services Ordinance

Following is the speech by the Secretary for Transport, Mr Haider Barma, in moving the resolution of the Public Bus Services Ordinance in the Legislative Council today (Wednesday):

Mr President,

China Motor Bus Company Limit

I move the resolution standing in my name on the Order Paper.

The Public Bus Services Ordinance provides for a profit control scheme which limits the profit that can be earned by a franchised bus operator. Our current policy for processing applications for fare increase is to take various factors into account, particularly operating costs, performance and public affordability rather than provide for a profit level based on a percentage rate of return on average net fixed assets. Therefore, in negotiating new bus franchises, our conscious approach has been to exclude all references to a profit control scheme.

We were successful in adopting such arrangements in CMB's previous franchise and, likewise, CMB's current franchise, which commenced on 1 September 1995, also contains no profit control scheme.

Accordingly, in so far as CMB is concerned, we need to disapply those sections of the Public Bus Services Ordinance governing the profit control scheme whilst retaining those sections which enable the Government to specify depreciation rates in respect of franchise related assets and require the company to produce accounts and other information needed for effective monitoring of its bus operations. resolution before Honourable Members seek to give effect to these arrangements.

Mr President, with these remarks, I move the resolution.

The

End/Wednesday, November 29, 1995