Sunday, 11th June 2006

Dear Reader,

Going Off the Rails (11-Jun-06)
The proposed "merger" of MTR and KCR railways is in danger of derailment. It removes revenue upside from a potential market-based reform of transport policy and ensures a reducing profit margin, at a speed which depends on the future rate of inflation. This will not be acceptable to minority shareholders. The flaws result from the Government's socialist transport policy which means that there simply isn't enough revenue to go around. If that is the long-term transport plan, then they should just admit it and buy out MTRC minority shareholders.

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David M Webb