XN000022-1996-01-10 — Page 17

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Second, the Democrats and other critics have argued that HYF does not deserve any fare increase because the standard of services they have provided is poor. No doubt there is plenty of room for improvement. But in all fairness, HYF has a good safety record. The number of public complaints about their services has dropped from 234 in 1994 to 195 last year. HYF has introduced a number of service improvements despite its unsatisfactory financial position. Major improvements include the purchase of three catamarans for the Tuen Mun to Central services; introduction of hoverferry service between Tuen Mun and Wan Chai, Tsuen Wan and Central (via Tsing Yi). But since one catamaran costs $35 million plus (in perspective this is 17 times the cost of a new bus), the company's ability to continue to incur such expenditure, is limited. It is also noteworthy that HYF has been responsive to requests for temporary relief ferry services, for example, in helping to deal with traffic congestion on Tuen Mun Road particularly during the road closure period.

I have listen very carefully to the Hon Libby Wong's comments and other Members' comments on the present shortcomings of the part of both management and staff. I have been the Hon Members the commitments that had been sought and that is the Administration will take all practical steps to require HYF to improve its performance and level of services. HYF has started to move in the right direction. Nut as the Hon Miriam Lau has quite correctly pointed out it is a chicken and egg issue: they need the resources to implement major improvements. The development package as I've said includes a clearly define service improvement programme. Details have also been lodged with the LegCo Secretariat.

Third, the Democrats ask why Government does not provide a direct subsidy or purchase new ferries? As I have said before in this Council, one of the fundamental reasons why, in overall terms, we have a good and efficient transport system in Hong Kong is because the private sector is involved in providing such services. Let me make it crystal clear that the Government has no intention whatsoever of running public transport on its own nor will the Government provide any direct public subsidy. It would therefore be wishful thinking on the part of the Democratic Party if one of their reasons for attempting to block the fare increase under consideration is to force the Government into such a situation. It must be realised the implications are far- reaching: a direct Government involvement in public transport will result in a substantial diversion of public funds and in turn this could mean that money then available, for example, for education, housing, social services etc, could be reduced.