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KMB calls on government to reconsider fare changes

Kowloon Motor Bus Holdings (KMB) has called on the government to consider commercial factors when it works out its fare-setting policy.

Managing director John Chan Cho-chak said yesterday it was inappropriate to link the fare policy to the consumer price index, as the administration had suggested.

'Business costs and consumer costs are two different things,' he said. 'The components of the consumer price index have nothing to do with our operating-cost components.' He said KMB's major costs were fuel, labour, insurance and tunnel fees.

A government spokeswoman said yesterday it was still consulting transport operators about the fare policy. She said the Environment, Transport and Works Bureau was rushing to meet its schedule to table the policy to the Legislative Council next month.

Mr Chan said KMB would only agree to a policy that offered a reasonable return - to ensure there was an incentive to invest - a mechanism allowing the company to raise and reduce fares, and a stable and predictable operating environment.

'The prerequisite of the fare mechanism is the commitment of the government and service providers,' Mr Chan said. 'This means both parties should follow the rules of the game.'

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