TNAG-0003-FCO40-39-Commission-of-Enquiry-into-the-Kowloon-disturbances-addition-1968 — Page 19

PART II THE STAR FERRY FARE ISSUE

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increases would encourage other companies to apply and gave the impression that increases were the idea of the authorities rather than the need of the companies themselves. It was also suggested that much of the excessive profits made by the Companies was channelled back to Government in the form of royalties and profit tax and it was implied that Government had a direct interest in increased fares. Recent increases by Government in school fees and water charges were alluded to. No mention was made of the insignificant part played by the royalty in relation to Star Ferry fares: it was in fact too small to affect the matter either way.

51. When it was confirmed by Government on October 28th that the Star Ferry Company had applied for a fares increase it is hardly surprising, in the light of this background, that the news was greeted with a barrage of opposition. On 28/29th October the Chinese press contained a number of editorials strongly opposing the application and this trend continued thereafter. The main theme was that an increase in the fares of one public transport undertaking would inevitably lead to increases in the others; and that this would increase the burden on the shoulders of the less fortunate sections of the community and would lead to general price inflation. One newspaper said that 'The introduction of increases in public transport fares is a major issue which will likely create chain reactions, cause general inflation, upset the economy and affect people's livelihood'. A number of other papers also referred to chain reactions and urged Government to refuse the application. The only commendation came in a comment applauding Government's action in making public the receipt of an application rather than merely announcing it after a decision had been made and it was too late for the public to express opposition. None of the press comments appears to have mentioned the provisions of the legislation regarding the Company's right to resort to arbitration in the event of an application for a fare increase being refused.

52. Press comment during November generally stressed the unfavourable timing of the Star Ferry Company's application and referred frequently to economic recession and fears of inflation. The press gave prominence to wide- spread public opposition and a feeling that public transport company profits were already excessive and unjustified by the standard of service provided. The opposition of a number of civic bodies (kaifongs, trade unions, the Chinese Manu- facturers' Association, the Civic Association, and the Kowloon and the Chinese General Chambers of Commerce) was highlighted and the hope expressed that Government would bow to public opinion. On 4th November, it was reported that the Civic Association had resolved to hold a mass meeting if the situation justified it. The Company sought to explain the proposed new fare structure in a statement and press conference on 4th November. However, these failed to convince and almost all editorials followed a common theme that the fare increase was un- justifiable and should be rejected by Government if not withdrawn by the Company.