************************************

Following is a transcript of the Secretary for the Environment, Transport and Works, Dr Sarah Liao's meet-the-media session today (June 9):

Reporter : What is the overall reaction....?

Dr Liao : This is a buy-out from one company Chow Tai Fook Enterprises Ltd to this Stagecoach Group. At the moment, it does not involve a re-assignment of the franchise. But if they should apply for a re-assignment of the franchise, it has to go through Chief Executive-in-Council. And during the process, we have to consider whether it would bring about any advantage to the public in terms of the provision of service, whether it can maintain a fair competition and a level playing field in the bus business.

Reporter : Even keep two franchises.....what kind of competition are you going to expect?

Dr Liao : Even if the two franchises are combined, it will consist of only one quarter of the entire bus business in Hong Kong.

Reporter: What about the jobs?

Dr Liao: We haven't really looked into the mode of a combined company, as there is no such proposal. I suppose we have to consider whether the company would continue to run efficiently and that they would have to look after the staff, this is one of our consideration.

Reporter: What is the reason for the sale? Stagecoach said that............because of economic downturn?

Dr Liao: This is Stagecoach's own opinion, and there is a buyer, so there must be business to begin there, so I am not worried.

(Please also refer to the Chinese portion)

End/Monday, June 9, 2003

NNNN