TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 162

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CONFIDENTIAL

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Paper or MTR Fares Prepared by the MTRC

Introduction

After discussing memorar dum XCC(79) 45 on 8t May,

1979 the Executive Council noted :

(i)

that feeder bus service links to MTR stations would be provided;

(ii)

that if the operation of the IITR

2.

(ii)

(iv)

(V)

reduced demand for certain bus services, including the cross harbour services, a reduction in such services would be made;

that it was not Government policy deliberately to reduce competition provided by other forms of public transport to the MTR in order to make the latter viable;

that any requests from public transport companies to increase their fares would be considered on the usual

basis of increased costs and that

there would be no question of inflating fares on other forms of transport to encourage more people to use the MTR;

that the Government remained completely free and uncommitted as regards any decisions on the possible restructuring of the fares or routes of bus and other public transport services.

Memorandum XCC (79) 45 stated that the MTRC Board envisaged a fare review at the end of 1930 to take account of cost increases during 1979 and 1980. As for other operators costs increases have been very significant. From October 1979 to December 1930 the average interest rate paid by the Corporation on market finance has increased from 14.7% to 17.9%. Over the same period electricity rates have increased by over 50% and wage rates by over 20%. The main objective of this paper, which has been prepared by the MTRC, is to inform Council Members of the MTRC Board's fare proposals for 1981.

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/Review

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