0003230
6.b. 323
}
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attract sufficient private funds to finance its construction there can be no reason for thinking of its operation by private enterprise unless it be the assumption that transport operated by a government is normally less efficient than privat transport. That assumption, while commonly valid, could be challenged on two grounds with respect to the H.K. Subway System. In the first place Government would be required to exercise considerable control over the system in order to satisfy its commitment as guarantor. Secondly it is considered unlikely that a private operator could attract to Hong Kong the very high standard of staff and expertise required to initiate and maintain a satisfactory operation.
43.
It is
There are curously similar reasons why the Subway should not be run as a normal technical department of Government. Apart from the general argument that comercial operations sit ill within the normal framework of a civil service, specific considerations of flexibility regarding staff, finance and operational practice indicate the need for an operating authority independent of the civil service. suggested that by far the most satisfactory way of operation would be the creation of a separate Authority which is administratively and financially autonomous from Government apart from its obligations under legislation. Almost all subway systems in the world are run by such authorities or public corporations and this would avoid the drawbacks both of private enterprise and of complex Government administration.
CONSTRUCTION AND EQUIPMENT
44.
1
As with methods of financing, with which they are related, so there are numerous methods of awarding contracts for a scheme of this size. It is likely that consortia of contractors in countries offering export-financing on deferred terms will favour large 'package...
It is con- deals' for constructing and equipping complete sections. sidered however that there would be advantages in the work being carriel out by means of a number of contracts of a size which will attract genuinely competitive tenders both internationally and locally. graphs 16.13 to 16.19 of Vol, I). The method finally chosen will depend on negotiation and on reaction if Government decides to support the System proposed.
CONCLUSIONS
45.
(Para-
The Director of Public Works and the Commissioner for Transport are satisfied that the Consultants "ave recommended a Subway System in the form of the full Preferred System which is technically the most feasible that can be adopted to meet the requirements and circumstances of Hong Kong. There are good reasons for concluding that no cheaper method exists for ensuring that future public transport needs
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