Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Tuesday, February 17, 1998 CONTENTS ======== 1. Review of CMB's franchise 2. Tenders invited for 88 franchised bus routes 3. Labour Department sets up enquiry hotlines for CMB staff 4. Launching of Construction Labour Importation Scheme deferred 5. Taiwan air crash 6. HK and Pakistan sign air services agreement 7. ExCo approves tram fare increase 8. New measure adopted for slope safety 9. Live broadcast of Budget on Internet 10. Business prospects for 1998 11. Update on avian flu 12. 78 convicted pollution cases in January 13. Hong Kong Monetary Authority tender results 14. Fresh water cut in Sham Tseng and Tsing Lung Tau 1. Review of CMB's franchise ************************* The Chief Executive in Council today (Tuesday) directed that the application of China Motor Bus Company Limited (CMB) for a new franchise or a franchise extension under the Public Bus Services Ordinance should not be approved. The Chief Executive in Council directed that it would be in the public interest to widen the trawl for the best available bus operator by putting a package of 88 bus routes on Hong Kong Island to public tender. Announcing the decision of the Chief Executive in Council, Mr Nicholas Ng, Secretary for Transport, stressed that in the negotiations with CMB, the Administration's objective had been, first and foremost, to ensure continuous provision of bus services, while giving due regard to maintaining healthy competition and improving the overall bus services on Hong Kong Island. "During the past three months, several meetings and numerous written exchanges have taken place between the Administration and CMB over the terms of a possible new franchise for the company, which would include built-in service improvement targets and a rationalisation of CMB's network, so as to improve bus service quality and enhance competition," Mr Ng said. "To achieve our objective, the Administration has stipulated as the general terms for a possible new franchise that CMB must replace, within three years following the new franchise commencement, all buses aged 18 years and above in its fleet. CMB must also implement a package of measures to improve its staff management, to improve its customer service and public relations. The Administration has also proposed a rationalised network of 88 bus routes for CMB, so as to enhance competition and improve the efficiency of bus services on Hong Kong Island." Although CMB indicated that they were willing to accept the general terms, following further negotiations, there were however still important differences between the two sides over the route rationalisation plan and its impact, the bus replacement programme, the improvement targets and the extent of Government's involvement in CMB's management. The expiry of CMB's current franchise on August 31 did not permit further protracted negotiations with CMB. "The Administration has reported this inability to reach agreement to the Chief Executive in Council and recommended that a package of 88 bus routes be put to public tender without further delay and uncertainty," Mr Ng said. "In arriving at the decision to go out for public tender, the Executive Council has considered carefully CMB's various representations, public expectations for service improvement, the desirability of enhancing healthy competition, other public interest considerations as well as the Administration's recommendation. To tender out the package of 88 bus routes is considered by the Chief Executive in Council as the most suitable option in the public interest." A gazette notice inviting tenders was issued today (Tuesday), with a tender closing date of March 13, 1998. CMB would be free to put in a bid. On the possible impact of the tender on the existing staff of CMB, Mr Ng explained that: "We do not know who would be the successful tenderer. To prepare for the eventuality that it is not the incumbent franchisee, we have specified in the tender document that the successful tenderer is required to make a first offer of employment to all existing front-line staff of CMB. All tenderers are also asked to make proposals to ensure a smooth transition." This is to ensure that the interest of the CMB's staff were safeguarded. "In any case, it is possible that given the current vacancy situation in the bus industry, some of the CMB staff could be absorbed by other bus operators. For those who wish to leave the bus industry altogether, the Labour Department stands ready to assist in providing personal counselling, training and job matching services," Mr Ng said. Labour Department has set up two hotlines (2922 7000 or 2922 6006) for answering enquiries from CMB's staff. CMB's staff may also call on the Labour Department's Labour Relations Division for assistance. "If the network of 88 routes is awarded to a new operator, we would provide the new operator with every assistance in ensuring uninterrupted bus services to the commuters. We also expect that commuters would enjoy a better quality bus service soon after the commencement of the new franchise," Mr Ng said. End 2. Tenders invited for 88 franchised bus routes ******************************************** The Transport Department is inviting tenders today (Tuesday) to operate a public bus service of 88 routes on Hong Kong Island (59 Hong Kong Island routes and 29 cross harbour tunnel routes) under a franchise of five years to be granted by the Chief Executive in Council under the Public Bus Services Ordinance. These routes are tendered out in one package. The successful tenderer will be required to operate the network from September 1, 1998. Commenting on the tender exercise, a spokesman for the Transport Department said: "The objective of this tender exercise is to maintain continuous provision of bus services, while giving due regard to the need to maintain healthy competition and to provide commuters with an efficient network of bus services. Tenders received will be assessed on the basis of the quality of tenderers' proposals to meet this objective." Tenderers' commitments to investment and service quality, their ability to demonstrate their vision and drive towards a proactive and customer-oriented service improvement programme and their capability to implement the proposals submitted would be important considerations. Tenderers' experience in the operation of a public bus service will also be taken into account. As one of the tender conditions, the successful tenderer, if not the incumbent franchisee, is required to make a first offer of employment to existing front-line staff of the incumbent franchisee. All tenderers are also asked to suggest other measures to ensure a smooth transition. This is to safeguard the interests of the current China Motor Bus (CMB) employees. Tenderers are required to submit proposals on the fares to be charged on the tendered routes which should be commensurate with the level and quality of services proposed. Details of the tender will be contained in the Gazette Extraordinary published today and will be repeated in the gazette on Friday (February 20). Tender documents can be obtained as from 4 pm today from the office of the Transport Department at Room 4021- 4024, 40th floor, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong. A company letter indicating interest in tendering for the franchises should be produced. Completed tenders must be placed in the Government Secretariat Tender Box situated in the lift lobby on the Lower Ground floor of the Central Government Offices (East Wing), 20 Lower Albert Road (at its junction with Garden Road), Hong Kong, before 12 noon on March 13 (Friday). End 3. Labour Department sets up enquiry hotlines for CMB staff ******************************************************** The Labour Department has set up two telephone hotlines - 2922 7000 and 2922 6006 - to answer enquiries that the China Motor Bus Co Ltd (CMB) staff may have about rights and benefits relating to their employment with CMB. This follows the Executive Council's decision today (Tuesday) not to approve CMB's application for a new franchise or a franchise extension. Meanwhile, CMB staff can also make enquiries at the following two Labour Relations offices: * Hong Kong East Office 12th floor, Eastern Law Courts Building 29 Tai On Street Sai Wan Ho, Hong Kong * Hong Kong West Office 3rd floor, Western Magistracy Building 2A Pok Fu Lam Road, Hong Kong To facilitate CMB staff to make enquiries, the department has extended the operating hours of the two offices and hotlines to 8 pm from today until Friday (February 20). Thereafter they can make enquiries during office hours. End 4. Launching of Construction Labour Importation Scheme deferred ************************************************************ The Government today (Tuesday) decided to defer the launching of the Construction Labour Importation Scheme for the time being. The decision was taken after full and careful consideration of all relevant factors, including the prevailing economic and labour market situation, the latest assessment of the manpower needs of the construction industry and public feedback. "The Government will continue to monitor the situation closely and review the matter at an appropriate time," said the Secretary for Education and Manpower, Mr Joseph W P Wong. "Meanwhile, the Construction Industry Training Authority and the Vocational Training Council will build up their registers of local workers who have passed the Intermediate Trade Tests through intensified training and retraining, as part of our efforts to ensure priority of employment for local workers. "Given the massive public housing programme and major infrastructual development projects that the Government will be undertaking, the demand for labour will remain substantial in the next few years," Mr Wong said. End 5. Taiwan air crash **************** In response to press enquiries in connection with the air crash in Taiwan yesterday (Monday) evening, a Government spokesman said initial information obtained from China Airlines by the Immigration Department indicted that there were no Hong Kong SAR passengers on board the plane involved. End 6. HK and Pakistan sign air services agreement ******************************************* The Hong Kong Special Administrative Region signed an air services agreement with the Islamic Republic of Pakistan today (Tuesday). The Secretary for Economic Services, Mr Stephen Ip, signed the agreement on behalf of the HKSAR Government while the Secretary Defence, Lt. Gen. (R) Iftikhar Ali Khan, signed on behalf of the Government of Pakistan. Speaking at the signing ceremony, Mr Ip said that the continued development of air services was important for maintaining the prosperity and stability of Hong Kong. "Under the Basic Law, the HKSAR Government shall provide conditions and take measures for the maintenance of Hong Kong's status as an international and regional aviation centre. "The Basic Law also provides that acting under specific authorisations from the Central People's Government, the HKSAR Government may negotiate and conclude its own air services agreements." He said that the agreement between Hong Kong and Pakistan provided a legal framework for the introduction of direct air services between the two places. This would help to further strengthen bilateral relationship between the two places. Mr Ip wished that trade, economic and tourism links between Hong Kong and Pakistan would continue to grow in the years to come. The agreement, which comes into force today, is Hong Kong's twenty-third air services agreement. Hong Kong has signed similar agreements with Australia, Brazil, Brunei, Canada, France, Germany, India, Indonesia, Italy, Japan, Korea, Malaysia, Myanmar, the Netherlands, New Zealand, the Philippines, Singapore, Sri Lanka, Switzerland, Thailand, UK and USA. End 7. ExCo approves tram fare increase ******************************** The Chief Executive in Council today (Tuesday) approved an increase in fares for Hongkong Tramways Limited (HKT) with effect from March 21. Tram fares were last revised in January 1997. Under the new fare scale, adult fares will be increased from $1.6 to $2, child fares from $0.8 to $1, and the price of a monthly ticket from $135 to $170 accordingly. A government spokesman said: "A fare increase is necessary to enable HKT to maintain a commercially viable operation and to continue implementing essential safety and service improvement programmes, including upgrading of tram cars, track and depot improvements, safety and courtesy training for staff, and the introduction of a full-scale meal break system for motormen." The spokesman also pointed out that HKT suffered a loss of $8.3 million in 1996 and was expected only to break even in 1997. A lower rate of increase would not enable HKT to recover its operating costs in 1998. "The increase is small in money terms. After the increase, trams remain the cheapest mode of public transport. "The Administration will continue to monitor closely HKT's implementation of safety and service improvement programmes," the spokesman added. End 8. New measure adopted for slope safety ************************************ A more robust method of improving the stability of cut soil slopes has been devised and put into use in Hong Kong, the Principal Government Geotechnical Engineer of the Civil Engineering Department (CED), Dr Andrew Malone, said today (Tuesday). The new method provides structural support by using standard pattern of soil nails in the central part of slopes. In addition, internal drains are installed to help reduce transient groundwater pressures which may lead to progressive deterioration of slopes. Speaking at the press conference to announce the findings of the Investigation Report on Ching Cheung Road landslide, Dr Malone said had such remedial measures been adopted, the slope failure on August 3 last year was very unlikely to have occurred despite the inherent geological uncertainty. A comprehensive investigation conducted by an independent team concluded that the landslide at Ching Cheung Road was caused by exceptional, high transient groundwater pressures resulting from extreme rainfall at the site in the weeks preceding the incident. The initial failure on July 7 caused the disruption of surface drainage channels and ground deformation leading to the infiltration of surface water. This became a contributing factor to the subsequent collapses of the slope on July 17 and August 3 respectively. The investigation, carried out by Halcrow Asia Partnership Limited, included review of documentary information, analysis of rainfall records, interviews with witnesses, site surveys, ground investigation, theoretical stability analyses and diagnosis of the causes of the failure. Commenting on the findings, Dr Malone said the Geotechnical Engineering Office of the CED had closely studied the report and agreed with its conclusions. "We have set up a team to screen slopes with similar risk to prevent a recurrence of the incident," he said. Copies of the investigation report are available at the Civil Engineering Library, Civil Engineering Building, 101 Princess Margaret Road, Ho Man Tin, Kowloon. End 9. Live broadcast of Budget on Internet ************************************ Internet users will be able to watch the live broadcast produced by Radio Television Hong Kong (RTHK) on the delivery of the 1998/99 Budget by the Financial Secretary, Mr Donald Tsang, from 2.30 pm tomorrow (Wednesday). By choosing the icon "Live Broadcast on Budget Speech" on the Hong Kong Special Administrative Government Home Page at website http://www.info.gov.hk, they will be able to view the whole proceeding. The proceedings will also be broadcast live on five television channels (TVB-Jade, TVB-Pearl, ATV-Home, ATV- World and Cable TV News Channel 1) as well as RTHK Channels 1, 3 and 5, Commercial Radio - AM 864. Besides, television and radio stations will broadcast a summary of the Budget by Mr Tsang tomorrow. Following is the timetable for the broadcast: Station Time (Wednesday) ------- ---------------- TVB-Jade 5.40 pm TVB-Pearl 7.15 pm ATV-Home 5.50 pm ATV-World 6.55 pm Cable TV News Channel 2 8 & 10 pm RTHK Radio 1 (Chinese) 5.30 pm RTHK Radio 2 (Chinese) 6.15 pm RTHK Radio 3 (English) 7.05 pm RTHK Radio (Putonghua) 8.30 pm Commercial Radio 1 (Chinese) 5.30 pm Commercial Radio 2 (Chinese) 6 pm (after main news) Commercial Radio (English) 5 & 6 pm (after main news) Metro News (English) 6.30 pm Metro FM 99.7 (Chinese) 11 pm (after news) Metro FM 104 (Chinese) 5 & 7 pm (after news) End 10. Business prospects for 1998 *************************** Manufacturers generally expect a slight increase in volume of orders in 1998 over 1997, according to the results of a recent Half-yearly Business Prospects Survey released today (Tuesday) by the Census and Statistics Department. Analysed by manufacturing industry, manufacturers in the electronic and electrical products and electrical machinery industries expect a mild increase in volume of orders in 1998, whereas manufacturers in the printing industry generally anticipate no significant change in volume of orders. Manufacturers in the fabricated metal products industry expect a slightly better performance in the second half of 1998 than in the first half. For the year as a whole, a mild increase in volume of orders is predicted. However, manufacturers in the wearing apparel industry and the textiles industry predict mild decreases in volume of orders in 1998. In general, manufacturers predict capacity utilization to remain stable in 1998 compared with 1997. Profit margins, however, are foreseen to be lower in 1998 compared with 1997. Exporters anticipate a slight increase in value of both domestic exports and re-exports in 1998 compared with last year, whereas bankers foresee that the value of total exports to remain more or less the same. Looking ahead, construction firms generally expect a moderate increase in volume of construction output in 1998 compared with 1997. The survey is held on a half-yearly basis, covering about 300 firms from major manufacturing industries, the import/export trades, the banking industry and the construction sector. It collects views of firms on the short-term prospects of the various major business sectors covered and aims at providing a quick reference, with a minimum time lag, for assessing the short-term future economic performance of Hong Kong. A spokesman for the Census and Statistics Department cautioned that, in a survey of this nature, the results should be interpreted with care as it is difficult to establish precisely the extent to which respondents' perception of the future accords with the underlying trends. The survey results are published in greater detail in the "Report on Half-yearly Business Prospects Survey, January 1998". The report is now available for sale at $10 a copy at the Government Publications Sales Centre, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong, or at the Census and Statistics Department Publications Unit, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai. Regular subscription may also be arranged. Enquiries about the survey results may be made to the General Economic Surveys Section of the Census and Statistics Department on 2805 6642. End 11. Update on avian flu ******************* The Department of Health (DH) announced today (Tuesday) that there were no new cases of influenza A (H5N1) today. The total number of cases stands at 18 confirmed cases. The conditions of these cases remain the same as of February 10. End 12. 78 convicted pollution cases in January *************************************** A total of 78 convictions were recorded in courts in January for breaching anti-pollution legislation enforced by the Environmental Protection Department. Of these cases, 17 were convictions made under the Water Pollution Control Ordinance (WPCO), 31 under the Noise Control Ordinance (NCO), 13 under the Air Pollution Control Ordinance (APCO), 13 under the Waste Disposal Ordinance (WDO), and four under the Dumping at Sea Ordinance (DASO). The fines ranged from $1,000 to $125,000. Gammon Construction Limited was fined $125,000 twice last month for breaching the Noise Control Ordinance. End 13. Hong Kong Monetary Authority tender results ******************************************* Tender date : 17 February 1998 Paper on offer : EF Bills Issue number : Q170 Issue date : 18 February 1998 Maturity date : 18 March 1998 Amount applied : HK$16,064 MN Amount allotted : HK$5,000 MN Average yield accepted : 5.75 PCT Highest yield accepted : 5.89 PCT Pro rata ratio : About 95 PCT Average tender yield : 6.15 PCT - - - - - Tender date : 17 February 1998 Paper on offer : EF Bills Issue number : Q807 Issue date : 18 February 1998 Maturity date : 20 May 1998 Amount applied : HK$11,421 MN Amount allotted : HK$2,000 MN Average yield accepted : 6.96 PCT Highest yield accepted : 7.05 PCT Pro rata ratio : About 20 PCT Average tender yield : 7.31 PCT - - - - - Tender date : 17 February 1998 Paper on offer : EF Bills Issue number : Y886 Issue date : 18 February 1998 Maturity date : 19 February 1999 Amount applied : HK$4,845 MN Amount allotted : HK$500 MN Average yield accepted : 9.19 PCT Highest yield accepted : 9.23 PCT Pro rata ratio : About 53 PCT Average tender yield : 9.32 PCT - - - - - Hong Kong Monetary Authority tenders to be held in the week beginning 23 February 1998:- Tender date : 23 February 1998 Paper on offer : EF Notes Issue number : 7502 Issue date : 24 February 1998 Maturity date : 24 February 2005 Tenor : 7 Years Amount on offer : HK$500 + 100 MN Coupon : 9.20 PCT - - - - - Tender date : 24 February 1998 Paper on offer : EF Bills Issue number : Q171 Issue date : 25 February 1998 Maturity date : 25 March 1998 Tenor : 28 Days Amount on offer : HK$5,000 MN - - - - - Tender date : 24 February 1998 Paper on offer : EF Bills Issue number : Q808 Issue date : 25 February 1998 Maturity date : 27 May 1998 Tenor : 91 Days Amount on offer : HK$2,000 + 500 MN - - - - - Tender date : 24 February 1998 Paper on offer : EF Bills Issue number : H858 Issue date : 25 February 1998 Maturity date : 26 August 1998 Tenor : 182 Days Amount on offer : HK$1,000 + 300 MN End 14. Fresh water cut in Sham Tseng and Tsing Lung Tau ************************************************ Fresh water supply to all premises in Sham Tseng and Tsing Lung Tau areas will be suspended between 10 pm on Friday (February 20) and 8 am the following day for alteration work on watermains. The suspension will affect Ka Lung Tsuen, Hong Kong Garden, Tsing Lung Tau Tsuen, Yuen Tun Tsuen, Sea Crest Villa, Lido Gardens, Sham Tseng Tsuen, Rhine Garden and Rhine Terrace. End
