TNAG-0957-FCO40-1176-The-Kowloon-Canton-Railway-1980 — Page 4

an increase of the order proposed would make a second increase prior to electrification inevitable. TAC therefore advised that increases now of the order of 30% for passenger fares and 20% in freight rates would be more appropriate.

Recommendation

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It is recommended that the revised schedule of fares in Annex D be approved and adopted for implementation with effect from Monday, 28th January 1980.

Public Relations Aspects

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To some extent, the public has become conditioned to substantial increases in public transport fares both approved and proposed. It therefore seems likely that the proposed increase in KCR fares will be grudgingly accepted, although there may be criticism that a Government- operated concern should increase its fares at a time when other fares and charges are also going up. The proposal may also give rise to related criticism on the problems currently being experienced by the Railway in maintaining its standards of service at a high level. Nevertheless, the proposed increase is small in absolute terms and, if it is agreed, KCR fares will still compare favourably with those of public light buses. Though higher than existing KMB fares on similar routes, the railway fares will still be very competitive if an increase for KMB is approved in the future. As a related issue, the General Manager has already embarked on a programme to keep the travelling public informed of developments on the KCR. This will be stepped up in the coming months to ensure that passengers are fully informed of the reasons for any disruptions to the service caused by modernisation work on the track.

Advice Sought

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(a)

Members will be asked to advise whether:

the proposed fare scale at Annex D should be approved; and

(b) it should be introduced on Monday, 28th January 1980.

(The Secretary for the Environment (Mr D. J. C. JONES) and the General Manager, Railway (Mr D. M. HOWES) will attend before the Council for the discussion of this item).

30th November 1979

(CR 10/5591/78)

CONFIDENTIAL