TNAG-0003-FCO40-39-Commission-of-Enquiry-into-the-Kowloon-disturbances-addition-1968 — Page 24

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PART II THE STAR FERRY FARE ISSUE

Public comment after release of Transport Advisory Committee's report

72. During March 1966 a number of reports had appeared in the press fore- casting approval by the T.A.C. of the Star Ferry Company's application. These were coupled with criticism of the Committee for failing to seek the views of the public which, it was claimed, was strongly opposed to increases.

73. On March 19th official announcements were reported of increases in postal charges for letters to China, Taiwan, and Macau and of fees for use of the facilities in the City Hall. It was also reported that the rents for certain low cost housing estates would be increased by 10% on 1st April. These reports aroused strong editorial criticism in certain papers of the authorities taking the lead in increasing charges and thereby adding to the burden of the poor. It was claimed that Government action would be widely interpreted as setting an example for the public utility companies to follow.

74. These reports were linked with further reports of tax increases in the budget proposals (increases in petrol and tobacco duty and in vehicle licence fees and increased rates of salaries and profits tax) and of proposed increases in parking fees. Most sections of the press and a large number of named public leaders were critical of the bunching together of these increases, emphasizing that it was not the individual increases which were so significant, but the 'inflation caused by chain reactions touched off by these increases that would deal a serious blow to the poor section of the community'.

75. Between 20th March and the start of the disturbances with which this report deals the Chinese press gave prominence to reports of the unfavourable reactions of some public leaders and civic bodies to the Transport Advisory Committee's report and to speculation as to whether other public utilities would follow suit. Although copies of the Report were made available to the Press, little or no publicity appears to have been given to the actual recommendations in the report nor to the reasons stated for these recommendations and it is clear from some of the comment that these were either misunderstood or ignored. Generally the criticism rested on the Committee's failure to accept public opinion and on its conclusions that an increase in the Star Ferry fare would have little effect on other prices and the general livelihood of the community. Only one paper referred to the statutory limitations which bound the committee and the Governor-in-Council; no mention appears to have been made of the Company's alternative right to arbitration.

76. The English language press took no unanimous line. There were some well reasoned editorials which endeavoured to direct public opinion towards the issues involved without necessarily supporting the committee's conclusion. One paper was critical of the timing of the proposed increase, another gave great prominence to alleged comment by Mr. LI En Yu, executive director of the

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