TNAG-1074-FCO40-1324-Policy-of-the-Government-of-Hong-Kong-on-education-1981 — Page 6

expensive form of transport. Only one operation may actually lose revenue as a result of this scheme: increased competition from the MTR will attract passengers from KMB along the route served by the MTR, and this may offset any gain in revenue elsewhere on KMB's network. It will therefore be important to transport operators that the level of payment is reasonably accurate and promptly paid.

Financial Implication

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Ma mi solvbr

It is currently estimated that the scheme could cost between $175 m -$250 m in a full year at current fare levels. rabo: Administrative costs incurred by the Government are anticipated to be of the order of $6m, depending upon the scale of surveys finally decided upon......

Annual Revenues are estimated to be about $6m, assuming a $10 charge for each card and a 100% take-up rate.

Options or

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i dop: OQUIO

The student travel scheme outlined in paragraph 6 above may need to be modified in the light of problems identified by the transport operators. The following options are being considered;

(i) to operate the student travel scheme on all transport

that modes seven days a week throughout operational hours;

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(ii) as in (i) except that Sundays and public holidays would

be excluded;

(iii)

(iv)

DANA

MOTOR

as in (i) except that operators which have recognised overcrowding problems on Sundays and public holidays may opt out on those days, either generally or on specific routes;

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ivona ung moni

id: to

as in (i), (ii) and (iii) with the cross-harbour services operated by the KMB and CMB excluded from the scheme.

Each of these options is currently being examined but it appears that the most viable option would be (iii), perhaps coupled with (iv). It is intended that any initial exclusions from the scheme should be reviewed from time to time.

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Legal Aspects on uvllowthe vo

12.

If the approach set out in paragraph 8(vii) were adopted, there would be a need for some revisions to fare scales, by resolution of the Legislative Council or by decision of the Governor-in-Council. If HKT does not agree to the proposed approach, then a minor amendment to the Tramway Ordinance (Chapter 107) may be required. Further amend- ments to subsidiary legislation may also be required, particularly concern- ing powers of inspection of student cards.

cmmelf.

•

機密

CONFIDENTIAL #2