XN000022-1996-01-24 — Page 31

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Realistic examination on fare increases urged

The Secretary for Transport, Mr Haider Barma, today (Wednesday) said that in considering applications for increases in public transport fares, Legislative Councillors should look at such proposals in a realistic manner.

"With respect, the discharge of responsibility does not lie in the outright rejection of such applications; surely responsibility must extend to an examination of all the facts and figures as well as taking into account the basis on which public transport is provided and recognising the full implications of any decision," he added.

"To reject such increases on the grounds that this would spiral inflation and adversely affect the economy is too simplistic. The impact on livelihood needs to be seen in proper perspective.

"For the five year period from 1991 to 1995, the average annual impact on the Consumer Price Index arising from all public transport fare increases equated to a meagre 0.29 percentage points.

"The current public transport component of the average household expenditure is less than five per cent."

Speaking at the motion debate on "freezing of fees and charges", Mr Barma said: "Of late there has been a growing temptation to politicise each and every application for a fare adjustment. To say the least, the tendency to focus on increases in percentage terms is misleading.

"In reality the increases in dollar terms is minimal and affordable, with increases on the majority of individual routes well under $1."

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