TNAG-0957-FCO40-1176-The-Kowloon-Canton-Railway-1980 — Page 1

DESK OFFICER

MEMORANDUM FOR EXECUTIVE COUNCIL

KOWLOON CANTON RAILWAY

PROPOSED INCREASE IN FARES

Aw 7/2

Introduction

On 11th December 1979, the Council considered memorandum ALSE ATTACHED XCC(79)112, a copy of which is at Annex. The Council advised and the

36 ขา4

Governor ordered that the proposed fare scale at Annex C to that memorandum should be agreed but a decision on the timing of the introduction should be deferred until after the paper concerning proposed increases in bus fares had been considered by Council.

2

On 29th January 1980, the Council considered memorandum XCC(80)15, which included, inter alia, the timing of the increases in bus fares agreed on 8th January 1980. The Council advised and the Governor ordered that the bus fare increases should be on Sunday, 3rd February 1980.

Implementation of KCR fare increase

3

The earlier intention had been, if Members agreed, to introduce increased fares on KCR services in January this year. Since then, further examination of the railway's financial situation has shown that, instead of making a net contribution to revenue, the KCR is likely to incur a deficit in the current financial year. Implementation as soon as possible is therefore sought for the approved fare increase, but, to enable appropriate publicity to be given and administrative arrangements to be made, it is now suggested that the effective date be 1st April 1980.

Advice sought

4

Members will be asked to advise whether the revised fare scale already agreed should be introduced on 1st April 1980.

(The General Manager, Kowloon-Canton Railway (Mr D. M. HOWES) will attend before the Council for the discussion of this item).