TNAG-1512-FCO40-2070-Kowloon-Canton-highway-and-Kowloon-Canton-Railway-Corporatio-1986 — Page 55

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to. Nevertheless, I hope that extensive consultation with the

District Boards and residents in the area will be carried out prior to any subsequent adjustments of fare levels.

The only arrangement in connection to the LRT that I cannot condone is the way in which the exclusive zone will come

about. Under the stipulation of section 5(4) of the Public Bus

Services Ordinance,

Ordinance, the franchise granted to the Kowloon Motor Bus Company (KMB) may be amended with the consent of the grantee

(i.e. KMB). By virtue of clause 22 of the Kowloon-Canton Railway (Amendment) Bill 1986, a franchise may, with or without

the consent of the grantee, be amended by the Governor in Council. There are certain merits in KMB's contention that the

Public Bus

Bus Services Ordinance is in

in fact a binding contract.

There is no doubt in my mind that KMB made its annual five-year plan with that assurance in mind. Even though the Government is prepared to make financial compensation to

compensation to the grantee for any pecuniary loss suffered by the grantee because of the restrictions for picking up and setting down passengers in the exclusive Transit Service Area, I think by unilaterally amending the terms of an agreement by way of legislation, the Government sets a dangerous precedent. The revocation of KMB's privileges to run internal routes in the TSA may damage the credibility of

the Government and undermine confidence of the business

community. It is interesting that the same argument has been put forward by the Government to justify not withdrawing its support for China Light & Power to participate in the Daya Bay Nuclear Project. Clause 22 of the Bill is an extraordinary provision, and I hope the Government will make it absolutely, unequivocally clear that such a measure will not be regularly employed for the sake of expedience.

In closing, I would like to pay tribute to my hard

working colleagues for their part in bringing to term the amendments to those provisions in this Bill which have given