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During the year, Government injected equity totalling HK$11.7 billion for the construction of the Airport Railway. Progress on construction is satisfactory. I am pleased to note that the Corporation is confident of the Airport Railway being completed within estimate.

The Corporation's net profit for 1995 was $1,196 million compared with $1,038 million in 1994. The accumulated losses of $99 million at the end of 1995 will not be extinguished until 1996. The Corporation has not therefore declared a dividend for 1995.

Mr President, the Mass Transit Railway Corporation is obliged under the law to operate in accordance with prudent commercial principles and, accordingly, must ensure that taking one year with another, its revenue is at least sufficient to meet its expenditure and interest payments. It is through annual fare adjustments that the Corporation generates the necessary funds to implement comprehensive maintenance and service improvement programmes. It is in fact the ability to determine its own fares that has enabled the Corporation to enjoy high credit ratings and to raise funds in local and overseas markets successfully to finance new railway projects and build for the future. Since these arrangements have worked well from 1979, when MTR services came into operation, we should treasure them, and not tamper with them.

The Corporation's annual report provides ample evidence of the corporation's very satisfactory performance. 1 congratulate the Chairman and the Corporation for their achievements in the past year.

End

Kowloon-Canton Railway Corporation Annual Report 1995

Following is a speech by the acting Financial Secretary, Mr Gordon Siu, in tabling the Kowloon-Canton Railway Corporation Annual Report 1995 in the Legislative Council today (Wednesday);

Mr President,

In accordance with section 14(5) of the Kowloon-Canton Railway Corporation Ordinance, I table the annual report and accounts of the Corporation for the year ended 31 December 1995.