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New harbour tunnel contract renews fears of job losses

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Management of the Cross-Harbour Tunnel was granted to a new contractor last night, triggering renewed fears of job cuts.

The Transport Department awarded the two-year contract starting on September 1 to Hong Kong Tunnels and Highways Management Limited, which takes over at the expiry of the 30-year franchise held by the Cross-Harbour Tunnel Company. It beat six other tenders.

A Transport Department spokeswoman said: '[The tenderer will] try to recruit the existing staff to fill any vacancies at their previous salaries.' But she declined to comment on whether jobs would be lost.

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Tunnel Employees' General Union chairman Sun Yung-sing said: 'We will fight to ensure that all existing staff members are retained on the same salaries.

'We will meet with staff and reflect their opinions to the new company.' Mr Sun said the new contractor - a joint venture between the Cross-Harbour Tunnel Company, Citic Pacific, Kerry Properties and China Merchants Holdings - had not yet made any contact with the union.

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The Government will retain control over tolls and fees.

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