Public Bus Services Ordinance


Published: 1997-06-30

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Cap 230 - PUBLIC BUS SERVICES ORDINANCE 1

Chapter: 230 PUBLIC BUS SERVICES ORDINANCE Gazette Number Version Date

Long title 30/06/1997


To provide for the granting of franchises to operate public bus services on specified routes, the regulation of the
operation and maintenance of such services and for matters ancillary thereto and connected therewith.


[1 September 1975]


(Originally 59 of 1975)

Part: I PRELIMINARY 30/06/1997




Section: 1 Short title 30/06/1997


This Ordinance may be cited as the Public Bus Services Ordinance.
(Amended 75 of 1982 s. 114)


Section: 2 Interpretation 30/06/1997


In this Ordinance, unless the context otherwise requires-
"bus" (巴士) has the same meaning as in the Road Traffic Ordinance (Cap374); (Replaced 75 of 1982 s. 114)
"Commissioner" (署長) means the Commissioner for Transport;
"franchise" (專營權) means the right to operate a public bus service granted under section 5;
"franchise period" (專營期) means the period for which a franchise is granted under section 6(1) and any period for

which the franchise is extended under section 6(2) or (3);
"grantee" (專營公司) means a company to which a franchise has been granted;
"North-west Transit Service Area" (西北鐵路服務範圍) means the North-west Transit Service Area within the

meaning of the Kowloon-Canton Railway Corporation Ordinance (Cap 372); (Added 56 of 1986 s. 22)
"passenger" (乘客) in relation to a bus means any person carried in or on it other than the driver or conductor or any

other employee of the grantee who is in uniform and on duty; (Added 88 of 1988 s. 2)
"profit control scheme" (利潤管制計劃) means the profit control scheme provided for by Part V;
"programme" (計劃) means a programme in force under section 12A; (Added 44 of 1984 s. 2)
"proper and efficient service" (適當而有效率的服務) means a proper and efficient public bus service within the

meaning of section 12; (Added 44 of 1984 s. 2)
"public bus service" (公共巴士服務) means a bus service for the carriage of passengers for reward at separate fares;
"Schedule of Routes order" (路綫表令) means an order under section 5(1);
"specified route" (指明路綫) means a route specified in the Schedule of Routes order applying in the case of a

grantee and any new route on which a public bus service is operated by that grantee in accordance with a
requirement under section 14 or 15, or an approval under section 16A. (Amended 44 of 1984 s. 2)


Section: 2A Construction of references to the Ordinance in a franchise,

programme or agreement
30/06/1997



Unless the context otherwise requires, any reference to this Ordinance (whether as the Public Omnibus Services
Ordinance 1975 (59 of 1975) or otherwise), or to any provision thereof, franchise, programme, agreement or other
document under or in pursuance of this Ordinance shall be deemed to be a reference to this Ordinance or such
provision thereof as amended from time to time.

(Added 44 of 1984 s. 3)




Cap 230 - PUBLIC BUS SERVICES ORDINANCE 2

Section: 3 Power of Chief Executive to give directions to a public
officer

62 of 1999 01/07/1997



Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) The Chief Executive may give to a public officer such directions as he thinks fit with respect to the exercise
or performance of his powers, functions and duties under this Ordinance, either generally or in any particular case.

(2) A public officer shall, in the exercise or performance of his powers, functions and duties under this
Ordinance, comply with any direction given by the Chief Executive under subsection (1).

(Amended 44 of 1984 s. 4; 62 of 1999 s. 3)

Part: II PUBLIC BUS SERVICE FRANCHISES 30/06/1997




Section: 4 Prohibition of operation of public bus service except under
franchise

30/06/1997



(1) A public bus service shall not be operated except under a franchise granted under this Ordinance or another
enactment.

(2) Any person who-
(a) operates, or manages or assists in the management of, a public bus service, or
(b) uses, or causes or permits to be used, a bus in the operation of a public bus service,

which is operated in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a
fine of $100000.

(3) This section does not apply to a public bus service which is-
(a) a tour service, that is to say, a service-

(i) for the carriage of passengers at separate fares;
(ii) entitling the passengers to travel together on a journey, with or without breaks, from the place or

places at which they are taken up (being the same place or 2 or more places in the same vicinity)
to one or more other places and back to the place or places at which they were taken up;

(iii) in which all the passengers are carried for the greater part of the journey; and
(iv) in which no passenger is a person who frequently, or as a matter of routine, travels, at or about

the time of day at which the journey is made, to or to the vicinity of a place from or through
which the journey is made; (Replaced 72 of 1976 s. 2)

(b) an international passenger service, that is to say, a service for the carriage of passengers in either
direction between any one or more of the following places, that is to say, the Hong Kong International
Airport, Hung Hom Railway Station, Macau Ferry Pier or any other pier, any Hong Kong border
crossing, any hotel, airline office or ferry or similar terminal, where the passengers on the service
consist only of-
(i) persons arriving in or intending to leave Hong Kong by aircraft, railway, ferry vessel, ship or

motor vehicle;
(ii) persons meeting or accompanying the persons referred to in sub-paragraph (i); or
(iii) persons employed by an airline or the agent of an airline, or by any travel, shipping or railway

agent; (Replaced 44 of 1984 s. 5)
(c) an hotel service, that is to say, a service for the carriage of passengers residing at an hotel where every

passenger is taken up or set down at the hotel;
(d) a student service, that is to say, a service for the carriage to or from a school, university or other

educational establishment of students thereof, persons accompanying or in charge of such students or
who teach at the school, university or other educational establishment;

(e) an employees' service, that is to say, a service provided by an employer for the carriage to or from their
place of work of passengers who are persons employed by him; (Amended 44 of 1984 s. 5)

(f) a residents' service, that is to say, a service approved by the Commissioner, after considering the
interests of any grantee franchised to operate over any part of the route to be covered by the service
and any other relevant matter, and provided by or on behalf of the management, residents or owners of



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 3

any residential development for the carriage of passengers to or from the residential development;
(Added 44 of 1984 s. 5)

(g) a multiple transport service, that is to say, a service (other than a service provided mainly for the
carriage of passengers to or from a residential development) in which no passenger is a person who
frequently or as a matter of routine travels, at or about the time of day at which the journey is to be
made, to or to the vicinity of a place from or through which the journey is made, approved by the
Commissioner, after considering the interests of any grantee franchised to operate over any part of the
route to be covered by the service and any other relevant matter, for the carriage of passengers by a
public bus service in combination with carriage by another mode or modes of public transport service
from one departure point to one destination and where a combined fare is paid for the whole journey,
single or return, at a place other than at the boarding point of the bus or on the bus. (Added 44 of 1984
s. 5. Amended 66 of 1984 s. 13)

(4) For the purposes of this Ordinance, a payment made by a person entitling him to be carried as a passenger
in a bus shall be treated as a separate fare notwithstanding that it is made in consideration of other matters in addition
to the journey and irrespective of the person by or to whom it is made.

Section: 5 Grant of franchises L.N. 163 of 2013 03/03/2014


(1) Subject to this Ordinance, the Chief Executive in Council may grant to any company registered under the
Companies Ordinance (Cap 622), or under the Companies Ordinance (Cap 32) as in force from time to time before the
commencement date# of section 2 of Schedule 9 to the Companies Ordinance (Cap 622), the right to operate a public
bus service on such routes as he specifies by order. (Amended 28 of 2012 ss. 912 & 920)

(2) A franchise may confer on the grantee the exclusive right to operate a service on any specified route.
(3) A franchise-

(a) may be granted following a public tender or in such other manner as the Chief Executive in Council
thinks fit;

(b) shall, except where the Legislative Council by resolution excludes the application of all or any of the
provisions of the profit control scheme, be subject to the profit control scheme;

(c) shall be subject to such conditions as the Chief Executive in Council specifies; and
(d) shall prescribe whether it may be extended under section 6(2) or (3).

(4) Without prejudice to any other provision of this Ordinance, a franchise may, with the consent of the
grantee, be amended by the Chief Executive in Council.

(5) A franchise may, with or without the consent of the grantee, be amended by the Chief Executive in Council
by order in the Gazette so as to restrict or prohibit the taking up or setting down of passengers within the North-west
Transit Service Area or, where the boundaries of that Area are varied under section 2(3) of the Kowloon-Canton
Railway Corporation Ordinance (Cap 372), to alter such a restriction or prohibition to take account of such variation.
(Added 56 of 1986 s. 22)

(6) Where an amendment to a franchise is made under subsection (5) without the consent of the grantee, the
grantee shall be entitled to compensation for the loss of any permitted return (as defined in Part V) on any investment
which the grantee may reasonably have been expected to make had the franchise not been so amended, subject to the
deduction from that permitted return of any sum required to be deducted under sections 28 and 29. (Added 56 of 1986
s. 22)

(7) In determining any compensation payable under subsection (6) account shall be had of any opportunity
which the grantee may have had to mitigate his loss and to the effect the construction and operation of the North-west
Railway under the Kowloon-Canton Railway Corporation Ordinance (Cap 372) would have had on the operations of
the grantee (being an effect for which no compensation is payable) had his franchise not been amended. (Added 56 of
1986 s. 22)

(8) Compensation payable under subsection (6) shall be in such amount as may be agreed between the
Commissioner and the grantee or, in the event of a failure to agree, as may be determined by arbitration under the
Arbitration Ordinance (Cap 609) and, for the purposes of that Ordinance, the reference in this subsection to arbitration
shall be deemed to be arbitration under that Ordinance with 2 arbitrators, one appointed by the grantee and one by the
Commissioner. (Added 56 of 1986 s. 22. Amended 17 of 2010 s. 112)

(9) The powers conferred on the Chief Executive in Council by subsection (5) shall cease to be exercisable
after a period of 20 years from the commencement* of the Kowloon-Canton Railway Corporation (Amendment)
Ordinance 1986 (56 of 1986) or such further period or periods as may be authorized by resolution of the Legislative



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 4

Council. (Added 56 of 1986 s. 22)
(Amended 62 of 1999 s. 3)

___________________________________________________________________
Notes:
1. The Orders made under section 5(1) of the Ordinance specifying Schedules of routes in respect of the
China Motor Bus Company Limited, the Kowloon Motor Bus Company (1933) Limited, the New Lantao Bus
Company (1973) Limited, the Citybus Limited, Long Win Bus Company Limited and New World First Bus
Services Limited have not been included in this Edition. For details of these Orders see L.N. 353 of 1991, L.N.
117 of 1997, L.N. 119 of 1997, L.N. 70 of 2001, L.N. 71 of 2001, L.N. 72 of 2001, L.N. 73 of 2001, L.N. 74 of 2001,
L.N. 75 of 2001, L.N. 60 of 2003, L.N. 61 of 2003, L.N. 62 of 2003, L.N. 63 of 2003, L.N. 64 of 2003, L.N. 65 of
2003, L.N. 201 of 2004, L.N. 202 of 2004, L.N. 203 of 2004, L.N. 204 of 2004. L.N. 205 of 2004, L.N. 206 of 2004,
L.N. 161 of 2006, L.N. 162 of 2006, L.N. 163 of 2006, L.N. 164 of 2006, L.N. 165 of 2006, L.N. 166 of 2006, L.N. 36
of 2008, L.N. 37 of 2008, L.N. 38 of 2008, L.N. 39 of 2008, L.N. 40 of 2008, L.N. 41 of 2008, L.N. 150 of 2009, L.N.
151 of 2009, L.N. 152 of 2009, L.N. 153 of 2009, L.N. 154 of 2009, L.N. 155 of 2009, L.N. 12 of 2011, L.N. 13 of
2011, L.N. 14 of 2011, L.N. 15 of 2011, L.N. 16 of 2011, L.N. 17 of 2011, L.N. 4 of 2012, L.N. 5 of 2012, L.N. 6 of
2012, L.N. 7 of 2012, L.N. 8 of 2012, L.N. 9 of 2012, L.N. 55 of 2013, L.N. 56 of 2013, L.N. 57 of 2013, L.N. 58 of
2013, L.N. 59 of 2013, L.N. 63 of 2014, L.N. 64 of 2014, L.N. 65 of 2014, L.N. 66 of 2014, L.N. 67 of 2014, L.N. 202
of 2015, L.N. 203 of 2015, L.N. 204 of 2015, L.N. 205 of 2015, L.N. 206 of 2015 and L.N. 207 of 2015, published in
the Gazette.


2. Resolutions of the Legislative Council under s. 5(3)(b) of the Ordinance have not been included in this
Edition. For details of these resolutions see L.N. 254 of 1991, L.N. 254 of 1993, L.N. 255 of 1993, L.N. 19 of
1995, L.N. 546 of 1995, L.N. 249 of 1996@, L.N. 70 of 1997@, L.N. 71 of 1997@, L.N. 72 of 1997@, L.N. 425 of
1997, L.N. 284 of 1998, L.N. 20 of 2003, L.N. 21 of 2003, L.N. 22 of 2003, L.N. 45 of 2006, L.N. 46 of 2006, L.N. 47
of 2006, L.N. 41 of 2013, L.N. 42 of 2013 and L.N. 43 of 2013.


@ These resolutions have been amended by the Adaptation of Laws (No. 25) Ordinance 1999 (62 of

1999), Schedule 3, items 21 to 24.


* In operation on 1 November 1986.

# Commencement date : 3 March 2014.

Section: 6 Periods of grants and extensions thereof L.N. 130 of 2007 01/07/2007


Remarks:
For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.


(1) A franchise may be granted for a period not exceeding 10 years, and in calculating a franchise period no

account shall be taken of any change from time to time in the specified routes.
(2) If, not less than 15 months before the expiry of the period for which a franchise was granted under

subsection (1), the grantee has by notice in writing to the Chief Secretary for Administration requested an extension of
such period, the Chief Executive in Council may, if he is satisfied that the grantee is capable of maintaining a proper
and efficient service, extend the franchise for a further period not exceeding 5 years. (Amended 44 of 1984 s. 6; 82 of
1995 s. 2; L.N. 362 of 1997)

(2A) Where notice has been given by a grantee under subsection (2), the Secretary for Transport and Housing
shall, not less than 9 months before the expiry of the period for which the franchise was granted under subsection (1),
submit to the Chief Executive in Council a report setting out his recommendation as to whether the franchise should
be extended for a further period under this section. (Added 82 of 1995 s. 2. Amended L.N. 106 of 2002; L.N. 130 of
2007)

(3) The Chief Executive in Council may, at any time during a franchise period-
(a) whenever he considers it appropriate having regard to any circumstances affecting the franchise; and
(b) if he is satisfied that the grantee is capable of maintaining a proper and efficient service, (Replaced 44

of 1984 s. 6)
extend the franchise from time to time for a further period not exceeding 2 years. (Amended 44 of 1984 s. 6)

(Amended 62 of 1999 s. 3)



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 5

___________________________________________________________________
Notes:
1. The application of the amendment to this section under the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995) is affected by section 7 thereof, which is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 7 Restriction on assignment or other disposition of franchise 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


A grantee shall not assign or otherwise dispose of its franchise, or any part thereof, without the approval of the
Chief Executive in Council.

(Amended 62 of 1999 s. 3)

Section: 8 Directors of grantee companies 28 of 1998; 62 of

1999
01/07/1997



Remarks:
Adaptation amendments retroactively made - see 28 of 1998 s. 2(1); 62 of 1999 s. 3


(1) Save where the Chief Executive in Council otherwise permits on the granting of a franchise, a majority of
the directors of a grantee shall be individuals who are ordinarily resident in Hong Kong. (Amended 80 of 1982 s. 2;
28 of 1998 s. 2; 62 of 1999 s. 3)

(2) A majority of the directors required under subsection (1) shall participate actively in the direction of the
grantee.

Section: 9 Chief Executive may appoint additional directors L.N. 163 of 2013 03/03/2014


(1) The Chief Executive may, notwithstanding any provision of the Companies Ordinance (Cap 622), the
Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) or any other law or of any document,
appoint not more than 2 persons to be additional directors of a grantee; and, notwithstanding any such provision as
aforesaid, a person so appointed may not be removed from the board of a grantee except by the Chief Executive.
(Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920)

(2) A person so appointed to be an additional director of a grantee shall represent the Government and for that
purpose shall be entitled to participate at meetings of the grantee and the board of the grantee, to have access to all
material concerning the affairs of the grantee which is available to any other director and require such information
with respect to the grantee's affairs as he may specify to be furnished to him, and, without prejudice to the foregoing
but subject to subsection (3), any such person shall be treated for all purposes as if he had been appointed at a general
meeting of the grantee as a director thereof.

(3) No fee or reward, financial or otherwise, shall be paid by a grantee to a person appointed to be an additional
director of the grantee under this section in respect of his performance of the functions of such a director.

Section: 10 Grantee not to alter memorandum or articles without

Chief Executive's approval
L.N. 163 of 2013 03/03/2014



No alteration shall be made during the franchise period to the memorandum of association (if any) or articles of
association of a grantee without the approval of the Chief Executive.

(Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920)




Cap 230 - PUBLIC BUS SERVICES ORDINANCE 6

Part: III OPERATION AND CONTROL OF SERVICES 30/06/1997




Section: 11 Grantee to operate on specified routes only 30/06/1997


(1) Subject to subsection (2), a grantee shall not operate a public bus service otherwise than on a specified
route.

(2) Whenever circumstances beyond the control of a grantee so require, a grantee may cause a public bus
service to be diverted from a specified route for so long as such circumstances continue to so require.

Section: 12 Grantee to maintain proper service 30/06/1997


(1) A grantee shall, at all times during the franchise period, maintain to the satisfaction of the Commissioner a
proper and efficient public bus service.

(2) Without prejudice to the generality of subsection (1), the grantee shall not be treated for any purpose of this
Ordinance as maintaining a proper and efficient public bus service unless it maintains the service and operates the
same in accordance with its franchise, this Ordinance, any direction or requirement under its franchise or this
Ordinance and any programme or any approval under section 16A. (Amended 44 of 1984 s. 7)

Section: 12A Forward planning programme L.N. 130 of 2007 01/07/2007


Remarks:
For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.


(1) With effect from 1 January 1985, a grantee shall in each year, not later than 30 June, prepare a programme

of the operations of the grantee for the following 5 years in respect of the matters specified in the Schedule, and the
grantee and the Commissioner shall, subject to subsection (4), take all reasonable steps to reach agreement on the
programme by 30 September in that year; and the programme as agreed under this subsection or as settled under
subsection (4) shall be submitted to the Secretary for Transport and Housing by the Commissioner.

(2) A programme submitted to the Secretary for Transport and Housing under subsection (1) in any year shall
upon such submission come into force and supersede the programme (if any) so submitted in the immediately
preceding year, but where a programme is not submitted in any year the programme submitted in the previous year
shall, without prejudice to subsection (5), continue in force until it is superseded or it expires, whichever is the earlier.

(3) A programme which is in force under this section may from time to time be altered by mutual consent of
the Commissioner and a grantee and such alterations shall be submitted to the Secretary for Transport and Housing by
the Commissioner and upon such submission the programme shall continue in force as altered.

(4) If the grantee and the Commissioner fail to reach agreement on any point in a programme prepared by a
grantee under subsection (1) in any year, or fail to mutually agree any alterations under subsection (3), the grantee and
the Commissioner shall forward the details of the point in disagreement to the Secretary for Transport and Housing
who shall decide on the point having regard to the submissions of the grantee and the Commissioner and such
decisions of the Secretary for Transport and Housing shall, subject to section 33, be final and shall be incorporated in
the programme and such programme shall be the settled programme.

(5) Where, without reasonable excuse, a grantee fails to prepare a programme in compliance with subsection
(1) it shall be deemed to be incapable of maintaining a proper and efficient service.

(Added 44 of 1984 s. 8. Amended L.N. 106 of 2002; L.N. 130 of 2007)

Section: 12B Relevance of programme and non-compliance in certain

circumstances
62 of 1999 01/07/1997



Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) In the exercise of any power under this Ordinance, the Chief Executive in Council and the Commissioner



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 7

shall have regard to a programme. (Amended 62 of 1999 s. 3)
(2) Where a grantee fails to comply with a programme by reason of circumstances beyond its control, such

failure shall not be taken as a breach of its franchise or a failure to maintain a proper and efficient services.
(Added 44 of 1984 s. 8)


Section: 13 Fares 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) The Chief Executive in Council may determine- (Amended 62 of 1999 s. 3)
(a) the scale of fares which may be charged for the carriage of passengers, baggage and goods on any

specified route or group of specified routes; and
(b) the maximum rate of increase which may be permitted by the Commissioner under subsection (3) in

the scale of fares determined under paragraph (a).
(2) Where the Commissioner requires a grantee under section 15, or approves an application by a grantee under

section 16A, to-
(a) alter a specified route temporarily; or
(b) operate a temporary public bus service on a route, not being a specified route,

the Commissioner shall determine the fares which may be charged for the carriage of passengers, baggage and goods
on such altered route or temporary service, and such fares shall be based on the appropriate scale of fares determined
under subsection (1)(a):

Provided that the Commissioner shall not reduce the fares on a specified route under this subsection where the
reason for the temporary alteration arises out of circumstances beyond the control of the grantee. (Replaced 44 of
1984 s. 9)

(3) Where circumstances require a public bus service to be operated on a specified route-
(a) on any day at a frequency greater than that specified in a direction under section 16(1)(a) or in an

application approved under section 16A;
(b) during a period or on a day other than that specified in a direction under section 16(1)(a) or in an

application approved under section 16A; or
(c) with a bus of a carrying capacity or of a type other than that specified in a direction under section

16(1)(b) or in an application approved under section 16A,
the Commissioner may by notice in writing to the grantee permit the grantee to charge an increased fare for the
carriage of passengers, baggage and goods on such route during such operation of a public bus service, and such
increased fare shall be based on the appropriate scale of fares determined under subsection (1)(a) to which may be
added such increase as the Commissioner may think fit at a rate not exceeding the rate of increase determined under
subsection (1)(b). (Replaced 44 of 1984 s. 9)

(4) A grantee shall not charge any passenger-
(a) a fare exceeding the fare determined in accordance with the appropriate scale of fares determined

under subsection (1)(a) or the fare determined under subsection (2) or permitted under subsection (3);
or

(b) except with the prior permission of the Commissioner, a fare lower than that so determined or, where
applicable, the increased fare permitted under subsection (3). (Amended 44 of 1984 s. 9)


Section: 14 Alteration of routes and provision of additional routes 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) Subject to subsections (4) and (5), the Chief Executive in Council may by notice in writing to the grantee
require it, before the expiry of such period as may be specified in the notice, to-

(a) alter a specified route in the manner specified in the notice, whether by way of extending or curtailing
or otherwise varying the route;

(b) operate a public bus service on such route, not being a specified route, as may be specified in the
notice.



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 8

(2) Where under subsection (1) the Chief Executive in Council requires a grantee to operate a service on a new
route, he may confer on the grantee the exclusive right to operate a public bus service on that route.

(3) The period of notice referred to in subsection (1) shall be-
(a) in the case of a notice served under paragraph (a) thereof, not less than 3 months; and
(b) in the case of a notice served under paragraph (b) thereof, not less than 6 months.

(4) A requirement shall not be made under subsection (1)(a) unless the Commissioner has consulted the grantee
with respect thereto. (Amended 44 of 1984 s. 10)

(5) Before a requirement under subsection (1)(b) is made, the Commissioner shall consult the grantee on the
proposed service and satisfy himself that the grantee, if he is required to operate a public bus service on a new route,
will-

(a) have available a sufficient number of buses for use on the new route and all existing routes; and
(b) be able to maintain a proper and efficient service on the new route and all existing routes,

and shall submit a report of his findings, and details of any points in disagreement between the grantee and him, to the
Chief Executive in Council. (Added 44 of 1984 s. 10)

(Amended 44 of 1984 s. 10; 62 of 1999 s. 3)

Section: 15 Temporary alteration of routes and provision of additional

routes
30/06/1997



(1) The Commissioner may, after consultation with a grantee, by notice in writing to the grantee, require it,
before the expiry of such period (being not less than 3 months) as may be specified in the notice, to-

(a) alter a specified route temporarily in the manner specified in the notice, whether by way of extending
or curtailing or otherwise varying the route;

(b) operate a temporary public bus service on such route, not being a specified route, as may be specified
in the notice.

(2) A requirement under subsection (1) shall have effect for such period, not exceeding 12 months, as may be
specified in the notice, and may be extended by the Commissioner for a further period not exceeding 12 months.

(3) Before a requirement under subsection (1)(b) is made, the Commissioner shall satisfy himself that the
grantee, if he is required to operate a public bus service on a new route, will-

(a) have available a sufficient number of buses for use on the new route and all existing routes; and
(b) be able to maintain a proper and efficient service on the new route and all existing routes. (Added 44

of 1984 s. 11)

Section: 16 Commissioner to specify frequency of services and

carrying capacity and types of buses
30/06/1997



(1) The Commissioner shall, after consultation with a grantee, from time to time as he thinks necessary, direct
by notice in writing to the grantee-

(a) the frequency at and the period on each day during which a public bus service shall be operated on a
specified route;

(b) the carrying capacity and types of the buses to be used on any such route.
(2) Where the effect of a notice under subsection (1) is to alter the frequency at which a public bus service is

being operated under such a notice in force at the time that the first-mentioned notice is given, such first-mentioned
notice shall take effect on such day as the Commissioner may specify, being not less than 3 months after the service of
the notice.

(3) Subject to subsection (3A), a grantee may, on any specified route in respect of which it has the exclusive
right to operate a public bus service, increase the frequency at which the service is operated on that route in
accordance with a direction under subsection (1) whenever in its opinion circumstances so require. (Amended 44 of
1984 s. 12)

(3A) For the purposes of subsection (3)-
(a) subject to paragraph (b), before a grantee increases the frequency of service on any specified route he

shall give to the Commissioner notice in writing of not less than 14 days or such lesser period as the
Commissioner may allow;

(b) where due to the special circumstances of any case a grantee increases the frequency of service on any
specified route without notice as required under paragraph (a), he shall, within 7 days after the date on



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 9

which the frequency of service is increased, give to the Commissioner notice in writing of such
increase and of the circumstances necessitating it. (Added 44 of 1984 s. 12)

(4) A grantee may, on any specified route in respect of which it does not have the exclusive right to operate a
public bus service, increase the frequency at which the service is operated on that route in accordance with a direction
under subsection (1) whenever in its opinion circumstances so require, if the increase in the frequency is-

(a) agreed between the grantee and any other grantee which operates a public bus service on that route;
and

(b) approved by the Commissioner.
(5) Before a direction under subsection (1) is given, the Commissioner shall satisfy himself that the grantee, if

he is required to operate a public bus service on a route at the frequency required, will-
(a) have available a sufficient number of buses for use on the route and all other routes; and
(b) be able to maintain a proper and efficient service on the route and all other routes. (Added 44 of 1984

s. 12)

Section: 16A Temporary variation of route, frequency of services,

carrying capacity and types of buses on grantee's
application

30/06/1997



(1) A grantee may apply in writing to the Commissioner-
(a) to alter a specified route temporarily by way of extending or curtailing or otherwise varying the route;
(b) to operate a temporary public bus service on a route, not being a specified route, or to suspend a public

bus service on a specified route;
(c) to vary temporarily the frequency at and the period on each day during which a public bus service is

operated on a specified route;
(d) to vary temporarily the carrying capacity and types of buses used on any route, whether specified or

not.
(2) An application under subsection (1) shall be delivered to the Commissioner not less than 14 days prior to

the date upon which the grantee desires to introduce the variation set out in his application:
Provided that, where special circumstances exist, the Commissioner may shorten the period of notice to be given

by the grantee.
(3) The Commissioner may approve, subject to such conditions as he thinks fit, or may refuse any application

under subsection (1), and where the Commissioner refuses any application he shall give the grantee in writing the
reasons for such refusal.

(4) An approval under subsection (3) shall have effect for such period, not exceeding 12 months, as the
Commissioner shall specify.

(5) The requirements of a notice under section 14 or 15 or a direction under section 16 shall, so far as they are
inconsistent with an approval of an application under subsection (3), be suspended during the period of the approval
and shall again take effect on the expiration of the period of the approval.

(Added 44 of 1984 s. 13)

Section: 17 (Repealed 72 of 1984 s. 2) 30/06/1997




Section: 18 Records 30/06/1997


(1) A grantee shall keep, to the satisfaction of the Commissioner, proper records in respect of the following
matters-

(a) the number and capacity of the buses in use on each specified route on each day;
(b) the number of journeys and the total kilometres travelled by each such bus on each day on each such

route; (Amended 75 of 1982 s. 114; L.N. 307 of 1984)
(c) the number of passengers carried by each such bus on each day on each such route; (Amended 75 of

1982 s. 114)
(d) the daily receipts in respect of each such route;
(e) the total kilometres lost each day in relation to each such route due to accidents, breakdowns and

vehicle and staff shortages, respectively; (Amended L.N. 307 of 1984)



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 10

(f) the maintenance of vehicles and stores; (Amended 44 of 1984 s. 14)
(g) the number and types of buses, and their carrying capacity, on order or under construction together

with details of the likely availability of such buses for use in the operation of the public bus service.
(Added 44 of 1984 s. 14)

(2) A grantee shall furnish to the Commissioner, at such times and in such form as he may require, copies of
the records kept by the grantee in accordance with subsection (1).

(3) A grantee shall permit the Commissioner, and any person authorized in writing by him, to inspect at any
reasonable time all such records and all accounts kept by the grantee in connection with its franchise; and the
Commissioner or any such person may make copies of any such records or accounts.

Section: 19 Provision of vehicle maintenance facilities, etc. 30/06/1997


A grantee shall provide and maintain such premises as the Commissioner considers necessary for construction,
repair and maintenance of vehicles used by the grantee in connection with its franchise and for the parking of all such
vehicles when they are not in use.

Section: 20 Restrictions in connection with section 19 30/06/1997


Except with the written permission of the Commissioner, a grantee shall not-
(a) use any premises provided and maintained in accordance with section 19 other than for the

construction, repair, maintenance or parking of vehicles used by the grantee in connection with its
franchise; or

(b) undertake or permit to be undertaken the construction, repair or maintenance of vehicles used by the
grantee in connection with its franchise, or the parking of such vehicles when they are not in use, other
than in premises provided and maintained in accordance with section 19.

(Replaced 82 of 1995 s. 3)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 21 Inspection of premises, maintenance facilities and vehicles 30/06/1997


(1) The Commissioner, and any person authorized in writing by him, may-
(a) at all reasonable times inspect-

(i) any premises used by a grantee in connection with its franchise and all facilities provided by a
grantee for the construction, repair and maintenance of vehicles so used by it;

(ii) any vehicle used by a grantee in connection with its franchise;
(b) require a grantee to carry out in respect of all such vehicles, or such of those vehicles as he may

specify, such repair, maintenance or other works, within such time (being not less than 3 months), as
he may specify; (Amended 44 of 1984 s. 15)

(c) require a grantee to carry out in respect of all or any vehicles used by the grantee in connection with its
franchise any maintenance and servicing in accordance with any programme. (Added 44 of 1984 s.
15)

(2) A grantee shall afford such facilities for the inspections referred to in subsection (1)(a) as may be required
by the Commissioner.




Cap 230 - PUBLIC BUS SERVICES ORDINANCE 11

Section: 22 Chief Executive in Council may impose financial penalty 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) The Chief Executive in Council may, by notice in writing to a grantee, require the payment of the financial
penalty specified in such notice. (Amended 62 of 1999 s. 3)

(2) A financial penalty may be imposed in respect of any failure by a grantee to comply with its franchise or
this Ordinance or any direction or requirement under its franchise or this Ordinance, or with any programme or any
approval under section 16A. (Amended 44 of 1984 s. 16; 66 of 1994 s. 2)

(2A) Without affecting the generality of subsection (2), a financial penalty may be imposed under this section in
respect of a failure by the grantee as regards-

(a) a particular route operated by it; or
(b) 2 or more routes so operated. (Added 66 of 1994 s. 2)

(3) A financial penalty imposed under this section shall not exceed $10000 for the first occasion on which a
penalty is imposed, and shall not exceed $20000 for the second occasion on which a penalty is imposed, and shall not
exceed $50000 for any subsequent occasion on which a penalty is imposed. (Amended 66 of 1994 s. 2)

(3A) In determining for the purposes of subsection (3) whether an occasion ("the occasion") is the first, second or
a subsequent occasion on which a financial penalty was imposed, the following shall apply-

(a) a previous occasion on which a financial penalty was imposed and which occurred more than 5 years
prior to the occasion shall not be taken into account; and

(b) a financial penalty previously imposed-
(i) either in respect of the same route or any other route (where the financial penalty being imposed

relates to a failure as regards a route); or
(ii) for any other reason,
shall be taken into account. (Added 66 of 1994 s. 2)

(4) A financial penalty shall not be imposed under this section unless-
(a) the Commissioner is satisfied that the grantee has had a reasonable opportunity of complying with its

franchise or this Ordinance or the direction or requirement, or with any programme or any approval
under section 16A, as the case may be;

(b) the Commissioner has notified the grantee of the failure and the details thereof; and
(c) the grantee has been given an opportunity of showing cause to the Commissioner why the penalty

should not be imposed. (Replaced 44 of 1984 s. 16)
(5) A financial penalty imposed under this section shall be recoverable as a civil debt.


Part: IV EMERGENCY AND REVOCATION 30/06/1997




Section: 23 Emergency 29 of 1998; 62 of
1999

01/07/1997



Remarks:
Adaptation amendments retroactively made - see 29 of 1998 s. 105; 62 of 1999 s. 3


(1) If the Chief Executive in Council considers that an emergency exists he may direct that the franchise of a
grantee be suspended, either altogether or in respect of any specified route he may specify, until the Chief Executive in
Council declares that the emergency no longer exists. (Amended 62 of 1999 s. 3)

(2) Where under subsection (1) a franchise is suspended altogether or in respect of any specified route, the
Government may by written notice served on the company and published in the Gazette require the company to
deliver to the Government possession of the following property, that is to say-

(a) any premises provided and maintained in accordance with section 19;
(b) any property (other than premises mentioned in paragraph (a)) used or kept by the company for the

purposes of or in connection with its franchise,
and may at the time of or as soon as practicable after service of the notice take possession of such property.

(3) Any property taken possession of under subsection (2)-



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 12

(a) may be retained by the Government until such time as the Chief Executive in Council declares that the
emergency no longer exists, and may be so retained notwithstanding that the franchise period of the
grantee has expired during the period of the emergency; and (Amended 62 of 1999 s. 3)

(b) may during its retention be used by the Government or its nominee in the operation of such bus service
as the Commissioner thinks fit.

(4) Subject to subsection (9), where possession is taken under subsection (2) of any property, the person having
for the time being the right to possession over the property during its retention by the Government under subsection
(3) shall be entitled to compensation as provided in subsections (5) to (7).

(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a
willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease-

(a) which is terminable by either party upon the giving of 1 month's notice;
(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in

respect of possession of the property under this section; and
(c) under which the rental is payable monthly in arrears.

(6) For the purposes of subsection (5)-
(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be

taken to be reference to the open market rental that a lessor might be expected to realize in respect of
that number of vehicles leased as a single lot;

(b) in the case of property being land or buildings on land, reference to a lease of the property shall be
construed as reference to a lease on terms prohibiting the use of the property other than in accordance
with the terms of any Government lease under which the land is held. (Amended 29 of 1998 s. 105)

(7) Notwithstanding subsection (5)-
(a) the compensation payable in respect of property being spare parts and other consumables shall be an

amount equal to the difference in book value of the stock of such consumables taken over the period of
the Government's possession of the property under subsection (3);

(b) the compensation payable in respect of property being the fixed assets of the franchisee (including
plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal
to the depreciation in the value of the property over the period of the Government's possession of the
property under subsection (3) as calculated at the rate of depreciation applicable in respect of that
property for the purposes of section 30,

and any such compensation shall be payable at the end of that period of possession.
(8) A grantee shall, in addition to any entitlement to compensation under subsection (4), be entitled to

compensation for any loss or damage sustained during the franchise period in consequence of any suspension of its
franchise under subsection (1), but nothing in this subsection shall be construed so as to entitle a grantee to receive
compensation under both this subsection and subsection (4) in respect of the same loss or damage.

(9) The liability of the Government under this section to pay compensation to any person under subsection (4)
shall cease to accrue upon the making of a declaration by the Chief Executive in Council under subsection (1).
(Amended 62 of 1999 s. 3)

(10) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.
(Replaced 82 of 1995 s. 4)


Section: 24 Revocation of right to operate a service on a specified

route or of franchise
62 of 1999 01/07/1997



Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


(1) If-
(a) it appears to the Chief Executive in Council that without good cause a grantee has failed, or is likely to

fail, to maintain a proper and efficient public bus service, either generally or in respect of any specified
route, in accordance with section 12; or

(b) a grantee has failed to pay any financial penalty imposed under section 22,
the Chief Executive in Council may direct the Commissioner to serve on the grantee a notice requiring the grantee to
show cause in writing, within 28 days after the service of such notice-

(i) why its right to operate a public bus service on such specified routes as are set out in such notice



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 13

should not be revoked; or
(ii) why its franchise should not be revoked altogether,

and any such notice shall specify the ground on which such right or the franchise may be revoked.
(2) If, after the service of a notice under subsection (1)(i)-

(a) the grantee does not show cause why its right to operate a public bus service on the specified routes set
out therein should not be revoked; or

(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the
opinion that the grantee has not shown good cause why such right should not be revoked,

the Chief Executive in Council may, with effect from such date as he may specify, revoke such right.
(3) If, after the service of a notice under subsection (1)(ii)-

(a) the grantee does not show cause why the franchise should not be revoked altogether; or
(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the

opinion that the grantee has not shown good cause why the franchise should not be revoked altogether,
the Chief Executive in Council may, with effect from such date as he may specify, revoke the franchise.

(4) Notice of the revocation of a right or franchise under this section shall be served on the grantee and, as soon
as practicable thereafter, shall be published in the Gazette.

(5) A grantee shall not be entitled to compensation in respect of the revocation of a right or franchise under this
section and where a franchise is revoked altogether the grantee shall be liable to pay to the Government any expense
incurred by the Government in connection with the franchise or the revocation thereof.

(Amended 62 of 1999 s. 3)

Section: 25 Temporary retention by Government of bus assets used by

company whose franchise is revoked or has expired
29 of 1998; 62 of
1999

01/07/1997



Remarks:
Adaptation amendments retroactively made - see 29 of 1998 s. 105; 62 of 1999 s. 3


(1) Where-
(a) a franchise has been revoked under section 24(3); or
(b) a franchise period has expired and no new franchise has been granted under section 5(1) to the

company,
the company shall deliver to the Government possession of such of the following property as may be specified by the
Government in a notice served on the company and published in the Gazette, that is to say-

(i) any premises provided and maintained in accordance with section 19 within the period of 3 months
immediately prior to the service of a notice on the company under section 24(1) or within the period of
3 months ending with the expiry of the franchise period (as the case may be);

(ii) any property (other than premises mentioned in paragraph (i)) used or kept by the company for the
purposes of or in connection with its revoked or expired franchise within that period,

and the Government may take possession of such property as from the time that the notice has effect.
(2) A notice served and published in accordance with subsection (1) shall have effect-

(a) where the notice was served and published prior to the revocation of the franchise or the expiry of the
franchise period, as from such revocation or expiry;

(b) in any other case, as from the time of its service and publication.
(3) Subject to subsection (8), any property taken possession of under subsection (1)-

(a) may be retained by the Government for such periods not exceeding 3 years in aggregate, and not
exceeding 2 years in the case of any one such period, as the Chief Executive in Council may direct;
and (Amended 62 of 1999 s. 3)

(b) may during its retention be used by the Government or its nominee, or by a third party designated by
the Government for the purposes of this subsection, in the operation of such bus service as the
Commissioner thinks fit.

(4) Subject to subsection (8), where possession is taken under subsection (1) of any property, a person having
for the time being the right to possession over the property during its retention by the Government under subsection
(3) shall be entitled to compensation as provided in subsections (5) to (7).

(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a
willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease-



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 14

(a) for the period specified in the notice given under subsection (1) as the period of the Government's
intended possession of the property and terminable by the lessee on giving 3 month's notice;

(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in
respect of possession of the property under this section;

(c) under which the rental is payable monthly in arrears.
(6) For the purposes of subsection (5)-

(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be
taken to be reference to the open market rental that a lessor might be expected to realize in respect of
that number of vehicles leased as a single lot;

(b) in the case of property being land or buildings on land-
(i) no regard shall be had to any improvements made to the property-

(A) after notice has been served on the company under section 24(1); or
(B) within a period of 1 year before the expiry of the franchise period,
as the case may be, except that sub-subparagraph (B) shall not apply as regards any
improvements made with the prior written approval of the Commissioner given for the purposes
of this section; and

(ii) reference to a lease of the property shall be construed as reference to a lease on terms prohibiting
the use of the property other than in accordance with the terms of any Government lease under
which the land is held. (Amended 29 of 1998 s. 105)

(7) Notwithstanding subsection (5)-
(a) the compensation payable in respect of property being spare parts and other consumables shall be an

amount equal to the difference in book value of the stock of such consumables taken over the period of
the Government's possession of the property under subsection (3);

(b) the compensation payable in respect of property being the fixed assets of the franchisee (including
plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal
to the depreciation in the value of the property over the period of the Government's possession of the
property under subsection (3) as calculated at the rate of depreciation applicable in respect of that
property for the purposes of section 30,

and any such compensation shall be payable at the end of that period of possession.
(8) The liability of the Government under subsection (4) to pay compensation to any person shall cease to

accrue, and its right to retain possession of any property under subsection (3) shall terminate-
(a) at the expiry of the period specified in the notice given under subsection (1) as the period for which the

Government intends to retain possession of the property, or at the expiry of any extension of that
period that the Government may specify by notice under this paragraph published in the Gazette; or

(b) on such earlier date as the Government may specify by notice under this paragraph published in the
Gazette, being a date not earlier than 3 months after the date of publication of the notice.

(9) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.
(10) For the avoidance of doubt it is declared that subsection (4) has effect notwithstanding section 24(5).

(Replaced 82 of 1995 s. 5)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 25A Terms upon which Government takes possession under

section 23 or 25
30/06/1997



(1) Where the Government takes possession of any property under section 23 or 25 (in either case referred to in
this section as "the relevant section") the following provisions shall have effect-



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 15

(a) if the property is land or buildings on land-
(i) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of

the period of its possession of the property under the relevant section) of all rates and other
outgoings of a periodically recurring nature incurred in respect of the property during the period
of its possession of the property under the relevant section;

(ii) the Government may replace from time to time any fixtures and fittings on the property which
may be or become beyond repair at any time during the period of its possession of the property
under the relevant section, without any obligation to reinstate the property at the termination of
its right to possession of the property;

(iii) the Government shall be at liberty at any time during the period of its possession of the property
under the relevant section to undertake any works that it may reasonably deem necessary to
render the property safe or to ensure the safety of any person lawfully using the property, without
any obligation to reinstate the property at the termination of its right to possession of the
property, and the reasonable cost of any such work shall be recoverable from the owner of the
property as a civil debt due to the Government;

(iv) subject to subparagraphs (ii) and (iii), at the termination of its right to possession of the property
under the relevant section, the Government shall ensure that the property is left in its original
condition, fair wear and tear excepted and excepting any damage not caused by any act or default
of the Government or anyone on the property with the Government's authority and under the
Government's control;

(b) if the property is property other than land or buildings on land-
(i) the Government may during the period of its possession of the property under the relevant

section fit any such new parts to any item of the property as shall from time to time be necessary,
without any obligation to reinstate the property at the termination of its right to possession of the
property;

(ii) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of
the period of its possession under the relevant section) of all outgoings of a periodically recurring
nature incurred in respect of the property during the period of its possession of the property under
the relevant section;

(iii) the Government may at its own expense during the period of its possession of the property under
the relevant section add to or install on any item of the property any safety or other equipment, or
make any alteration or modification to the property, as may be required under any Ordinance,
without any obligation to reinstate the property at the termination of its right to possession of the
property;

(iv) subject to subparagraphs (i) and (iii), at the termination of its right to possession of the property
under the relevant section, the Government shall ensure that the property, other than such
property as may have been acquired by the Government under section 25B, is left in its original
state of repair and working order, fair wear and tear excepted, and excepting any damage not
caused by any act or default of the Government or anyone in possession of the property with the
Government's authority and under the Government's control.

(2) In this section "original condition" (原來狀況) and "original state of repair and working order" (原來的維
修及操作狀態) mean, in relation to any property, the condition or state of repair and working order of the property
at the time of the Government's taking possession of it under the relevant section.

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 16


Section: 25B Acquisition of bus assets (other than land) used by grantee

whose franchise is revoked or has expired
30/06/1997



(1) Where-
(a) a franchise is revoked under section 24(3); or
(b) a franchise period expires and no new franchise is granted under section 5(1) to the company,

the Government may acquire, in its own name or in the name of a third party designated by the Government for the
purposes of this section, any property (other than land, interests in land or buildings on land) used or kept by the
company for the purposes of or in connection with its franchise within the period of 3 months immediately prior to the
service of a notice on the company under section 24(1) or within the period of 3 months ending with the expiry of the
franchise period (as the case may be).

(2) In respect of any property of which the Government has taken possession under section 25(3), the power
conferred by subsection (1) may be exercised at any time within the period of 1 year from the date of revocation or
expiry of the franchise period, as the case may be.

(3) Where the Government acquires any property under subsection (1), any person having an interest or right in
or over that property shall be entitled to compensation in an amount equal to the open market value that a willing
vendor might be expected to realize on the sale of such interest or right in the property.

(4) In subsection (3), in the case of an interest or right in property being a number of motor vehicles reference
to the open market value shall be taken to be reference to the open market value of the interest in that number of
vehicles when dealt with as a single lot.

(5) Where any property is acquired under this section the owner of the property or any person having an
interest or right in or over the property shall, when called upon to do so by the Government, execute a transfer in
favour of the Government or a third party designated by the Government for the purposes of subsection (1).

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 25C Power of entry 30/06/1997


The Government or its nominee may, for the purpose of taking possession of property under this Part, enter upon
any land or buildings on land where it is reasonably necessary to do so for that purpose.

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 25D Determination of compensation by arbitrator L.N. 38 of 2011 01/06/2011


(1) The Government may compromise or settle any claim for compensation under this Part.



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 17

(2) In default of an agreement between a claimant for compensation under this Part and the Government as
regards the amount of compensation, if any, payable to the claimant the compensation shall be determined by
arbitration under the Arbitration Ordinance (Cap 609) and for that purpose the Government and the claimant shall be
regarded as having made an arbitration agreement within the meaning of that Ordinance whose provisions shall be
deemed to include a provision that the compensation referred to shall, in the absence of an agreement, be determined
by a single arbitrator. (Amended 17 of 2010 s. 112)

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Section: 25E Provisional payment pending determination of

compensation
30/06/1997



(1) Where any offer of compensation made by the Government to any person under this Part in respect of any
claim is not accepted, the Government may, pending the determination by the arbitrator of the compensation, if any,
payable in respect of such claim under this Part, pay-

(a) an amount as a provisional payment of the amount payable by virtue of such determination; and
(b) interest on any payment made under paragraph (a), for the period from the date on which the amount

becomes payable until the date on which the payment is made, calculated at a rate equal to the 7 day
deposit rate plus 2%, where "7 day deposit rate" (7天通知存款利率) means the highest rate of
interest (expressed as a percentage) paid from time to time by the continuing members of the
Committee of The Hong Kong Association of Banks on deposits of that amount fixed for 7 days.

(2) Any payment made by the Government under subsection (1) in respect of any claim shall be without
prejudice to the claim or the submission of the claim to, or its determination by, the arbitrator under this Part; but the
amount of compensation payable by virtue of such determination in respect of such claim shall be reduced by the
amount of such payment.

(3) Where the amount of compensation payable by virtue of a determination of the arbitrator under this Part is
reduced under subsection (2) by the amount of any payment made under subsection (1), such compensation shall not
as from the date on which the payment is made bear interest except on the amount of the compensation as so reduced.

(4) Where the amount of any payment made by the Government under subsection (1) in respect of any claim
exceeds the amount of the compensation determined by the arbitrator in respect of such claim, the amount of the
excess shall be recoverable by the Government as a civil debt.

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.




Cap 230 - PUBLIC BUS SERVICES ORDINANCE 18

Section: 25F Payment of compensation and interest 30/06/1997


(1) At any time after agreement or determination by the arbitrator of the amount of compensation to be paid
under this Part, the Government may by notice published in the Gazette require the person entitled to such
compensation to collect the same within the time and at the place specified in the notice.

(2) Subject to section 25E(3), any sum of money payable as compensation by virtue of an agreement under this
Part or a determination of the arbitrator shall bear interest from the date on which it became payable until the
expiration of the time specified in the notice referred to in subsection (1); but no interest shall be payable on any costs
or remuneration.

(3) The rate of interest for the purposes of subsection (2) shall be a rate equal to the 7 day deposit rate plus 2%,
where "7 day deposit rate" (7天通知存款利率) means the highest rate of interest (expressed as a percentage) paid
from time to time by the continuing members of the Committee of The Hong Kong Association of Banks on deposits
fixed for 7 days of an amount equal to the amount of compensation payable.

(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance

1995 (82 of 1995), which section is reproduced as follows-


"7. Application


This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".


2. 82 of 1995 commenced operation on 4 August 1995.

Part: V PROFIT CONTROL SCHEME 30/06/1997




Section: 26 Interpretation 30/06/1997


In this Part, unless the context otherwise requires-
"accounting year" (會計年度) means the accounting year adopted by a grantee for drawing up its annual profit and

loss accounts and balance sheet;
"average net fixed assets" (固定資產平均淨值) for any accounting year means the average of the opening and

closing balances for that accounting year, as shown by the records of a grantee, of its net fixed assets;
"Development Fund" (發展基金) means the Development Fund referred to in section 27(1);
"fixed assets" (固定資產) means the stocks of capital items of stores and spares, investments in land, buildings, buses

and other motor vehicles, plant, machinery and equipment, furniture, fixtures and fittings and other fixed assets
(including assets in the course of construction, goods in transit and payments on account) used or kept by a
grantee for the purposes of or in connection with its franchise;

"net fixed assets" (固定資產淨值) means the fixed assets of a grantee after any depreciation under section 30;
"operating costs" (經營成本) means-

(a) the total operating costs incurred by a grantee in connection with its franchise;
(b) any realized and unrealized currency exchange losses arising after the date of commencement of the

Public Bus Services (Amendment) Ordinance 1986 (30 of 1986) from transactions in connection with
the franchise of a grantee; and

(c) depreciation effected in accordance with section 30; (Added 30 of 1986 s. 2)
"operating profit" (經營利潤) of a grantee means the difference between its operating receipts and its operating costs,

to which difference is added the interest (referred to in section 29(1)(b)) on all borrowed capital of the grantee;
(Added 30 of 1986 s. 2)

"operating receipts" (經營收入) means-
(a) the total gross sums received by a grantee by way of-



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 19

(i) the fares charged by the grantee for the carriage of passengers, baggage and goods on public
buses;

(ii) any charges imposed or other benefits obtained by the grantee under this Ordinance or its
franchise; (Amended 30 of 1986 s. 2)

(iia) any realized currency exchange profits arising after the date of commencement of the Public Bus
Services (Amendment) Ordinance 1986 (30 of 1986) from transactions in connection with the
franchise of the grantee; (Added 30 of 1986 s. 2)

(iib) any proceeds of sale of obsolete or used stores and spares which were, when new or before being
used, acquired by the grantee for the purposes of or in connection with its franchise; and (Added
30 of 1986 s. 2)

(iii) any other revenue, including revenue from advertisements, derived from the use of fixed assets,
but does not include interest or dividends on deposits or investments and the proceeds of the sale
or redemption of investments or fixed or other assets; and

(b) the gross value, as determined by the Financial Secretary, of any fixed assets, services or facilities
received by a grantee in lieu of any part of such total gross sums;

(c) the interest or dividends accruing in respect of cash or securities which are for the time being deposited
by a grantee with the Director of Accounting Services for the purposes of section 4(4)(c) of the Motor
Vehicles Insurance (Third Party Risks) Ordinance (Cap 272); (Added 88 of 1988 s. 3)

"permitted return" (准許收益) means the return allowed to a grantee in an accounting year and which is computed in
accordance with section 28(1). (Replaced 30 of 1986 s. 2)


Section: 26A Deduction of financial penalty payments 30/06/1997


In ascertaining as regards a grantee, its-
(a) operating costs; or
(b) service related expenditure,

for any purpose related to this Ordinance or the franchise granted to such grantee under this Ordinance, neither of the
following shall be taken into account-

(i) any amount paid by or recovered from the grantee as a financial penalty imposed under section 22; or
(ii) any costs paid or incurred by it in connection with the recovery of a financial penalty under section

22(5).
(Added 66 of 1994 s. 3)


Section: 27 Development Fund 30/06/1997


(1) A grantee shall, for the purposes of its franchise, maintain a Reserve to be called the Development Fund the
purpose of which, subject to section 28(4) and (5), shall be to assist in the acquisition of fixed assets.

(2) The balance in the Development Fund represents a liability of a grantee and shall not be applied except as
provided in this Part or in the franchise of a grantee.

Section: 28 Permitted return 30/06/1997


(1) The permitted return to a grantee in an accounting year shall be an amount equal to the percentage per
annum specified in its franchise of the average net fixed assets of the grantee in that accounting year. (Amended 30 of
1986 s. 3)

(2) There shall be deducted from the permitted return the amounts specified in section 29.
(3) Where in an accounting year the operating receipts of a grantee exceed the aggregate of-

(a) the operating costs of the grantee; (Replaced 30 of 1986 s. 3)
(b) any profits tax arising from the operating profit of the grantee; and (Replaced 30 of 1986 s. 3)
(c) any deferred tax (the inclusion of deferred tax in the accounts for that accounting year being at the

discretion of the grantee), (Added 30 of 1986 s. 3)
for that accounting year, the grantee shall deduct the permitted return from such excess or so much thereof as is
permitted by such excess, and in the former case any excess remaining thereafter shall be added to the Development
Fund.



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 20

(4) Where in an accounting year-
(a) the operating receipts of a grantee are less than the aggregate of the amounts in respect of subsection

(3)(a), (b) and (c); or (Amended 30 of 1986 s. 3)
(b) only part of the permitted return has been deducted under subsection (3),

the grantee shall, subject to subsection (5), deduct from the Development Fund-
(i) in the case of paragraph (a), the deficiency in the operating receipts and the entire amount of the

permitted return; and
(ii) in the case of paragraph (b), such part of the permitted return as has not been deducted under

subsection (3).
(5) If in an accounting year there is no balance in the Development Fund, or the balance in the Development

Fund is insufficient, for the purposes of subsection (4)(i) or (ii) as the case may be, the Financial Secretary may in
writing permit the grantee to deduct from the Development Fund in subsequent years any amount due to it under that
subsection in that accounting year.

Section: 29 Deductions from permitted return 30/06/1997


(1) Subject to such conditions as may be specified in its franchise, there shall be deducted from the permitted
return in each accounting year of a grantee-

(a) a charge at the rate specified in its franchise on the average of the opening and closing balances of the
Development Fund in the accounting year; and

(b) interest at the rate specified in its franchise on all borrowed capital of the grantee.
(2) Any amounts deducted under subsection (1)(a) shall be added to the Development Fund in the accounts of

each accounting year and shall form part of the opening balance of the Development Fund in the next following
accounting year.

Section: 30 Depreciation 30/06/1997


Subject to such conditions as may be specified in its franchise, the annual rates of depreciation and the residual
value in respect of the fixed assets of a grantee shall be as specified in its franchise.

Section: 31 Review of profit control scheme 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


The operation of the profit control scheme in respect of a grantee shall be reviewed by the Chief Executive in
Council every 2 years.

(Amended 62 of 1999 s. 3)

Section: 32 Powers of Financial Secretary to require production of

accounts, etc.
30/06/1997



The Financial Secretary may require a grantee-
(a) to produce to him, at such time and place as he may specify, such books and statements of account of

the grantee; and
(b) to provide to him such information in relation to the public bus service operations of the grantee,

as he may require.

Part: VI MISCELLANEOUS 30/06/1997




Section: 33 Appeal by grantee L.N. 130 of 2007 01/07/2007


Remarks:



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 21

For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.


(1) A grantee which is aggrieved by any decision, direction or requirement of the Secretary for Transport and

Housing, or a public officer given directions under section 3, or the Commissioner, or any person authorized by him,
under this Ordinance or its franchise may, within 28 days of the giving or making of the decision, direction or
requirement, appeal by petition to the Chief Executive in Council, and the decision of the Chief Executive in Council
on any such appeal shall be final. (Amended 44 of 1984 s. 17; L.N. 106 of 2002; L.N. 130 of 2007)

(2) Where a grantee has appealed under subsection (1), the decision, direction or requirement, as the case may
be, shall not have effect until the appeal has been determined, unless the Chief Executive in Council otherwise directs.

(Amended 62 of 1999 s. 3)

Section: 34 Amendment of Schedule of Routes orders 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


The Commissioner shall, whenever necessary in consequence of-
(a) the exercise of any power conferred on the Chief Executive in Council by section 14;
(aa) a revocation of a right to operate a public bus service on any specified route by mutual consent of the

Commissioner and a grantee or in consequence of an order under section 5(5); (Added 44 of 1984 s.
18. Amended 56 of 1986 s. 22)

(b) a revocation under section 24(2); or
(c) any decision of the Chief Executive in Council on an appeal under section 33,

by order amend the Schedule of Routes order affected thereby.
(Amended 62 of 1999 s. 3)


Section: 35 Secretary for Transport and Housing to make regulations* L.N. 130 of 2007 01/07/2007


Remarks:
For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.


(1) The Secretary for Transport and Housing may make regulations for all or any of the following matters-

(Amended 66 of 1994 s. 4; L.N. 106 of 2002; L.N. 130 of 2007)
(a) the provision of adequate signs and destination indicators on buses used by a grantee;
(b) the provision of uniforms and badges for the drivers, conductors and authorized persons employed by a

grantee; (Amended 44 of 1984 s. 19)
(c) regulating the conduct of such drivers, conductors and authorized persons while so employed;

(Amended 44 of 1984 s. 19)
(d) generally as to the conduct of passengers and intending passengers on buses used by a grantee;

(Replaced 88 of 1988 s. 4)
(da) (Repealed 88 of 1988 s. 4)
(db) controlling or prohibiting the carriage of goods and dangerous items on such buses; (Added 44 of

1984 s. 19)
(dc) controlling or prohibiting the carriage of animals and birds on such buses; (Added 44 of 1984 s. 19)
(dd) the control and disposal of property lost on such buses; (Added 44 of 1984 s. 19)
(e) the method of payment of fares by passengers using such buses;
(f) the designation of bus stops and the erection of appropriate signs and notices thereon;
(fa) during the period referred to in section 5(9), prohibiting or restricting the putting down or taking up of

passengers or of any class of passengers by a grantee within the North-west Transit Service Area
otherwise than as may be permitted by its franchise; (Added 56 of 1986 s. 22)

(g) regulating the number of the seated passengers and standing passengers respectively whom a bus used
by a grantee is constructed or adapted and fit to carry;

(h) regulating the number of such passengers respectively who may be carried in such a bus;



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 22

(i) the marks to be carried on such a bus showing the numbers referred to in paragraphs (g) and (h) and
the manner in which those marks are to be carried;

(j) regulating, in relation to the drivers of buses used by a grantee-
(i) the maximum number of hours during which any such driver may be permitted to drive such a

bus; and
(ii) the intervals to be provided by a grantee for the rest and refreshment of such drivers,
in any period specified in the regulations; (Amended 44 of 1984 s. 19)

(k) generally for the purposes of this Ordinance.
(2) The Chief Executive in Council may by regulation provide- (Amended 62 of 1999 s. 3)

(a) that the contravention of any regulation made pursuant to subsection (1) is an offence; and
(b) in respect of such offence, a penalty of a fine not exceeding $5000 and imprisonment not exceeding 6

months. (Added 66 of 1994 s. 4)
_________________________________________________________________________________________
Note:
* (Amended L.N. 130 of 2007)

Section: 36 By-laws 30/06/1997


(1) Subject to this Ordinance and its franchise, a grantee may make by-laws for all or any of the following
matters-

(a) the protection of property owned or controlled by the grantee from damage or injury;
(b) the prevention of frauds on the grantee;
(c) the safe and efficient operation of the grantee's public bus service;
(d) the procedure to be followed in case of accident;
(e) generally as to the conduct of passengers while using the grantee's buses and in particular (but without

prejudice to the generality of the foregoing) for-
(i)-(ii) (Repealed 44 of 1984 s. 20)
(iii) requiring a passenger to declare, if so requested by the driver or conductor, the journey he

intends to take or has taken in the bus and to pay the fare for the whole of that journey and to
accept any ticket provided therefor; (Amended 75 of 1982 s. 114)

(iv) requiring, on demand being made for the purpose by the driver or conductor or other person
authorized by the grantee, production during the journey and surrender at the end of the journey
by the holder thereof of any ticket issued to him;

(v) requiring a passenger, if so requested by the driver or conductor, to leave the bus on the
completion of the journey the fare for which he has paid; (Amended 75 of 1982 s. 114)

(vi) requiring the surrender by the holder thereof on the expiry of the period for which it is issued of a
ticket issued to him.

(2) All by-laws made under subsection (1) shall be subject to the approval of the Legislative Council.
(3) Any such by-laws may provide that a contravention of specified provisions thereof shall be an offence and

may provide penalties therefor not exceeding a fine of $2000.
(4) A grantee shall cause printed copies of all by-laws made under this section to be kept at its registered office

and to be sold at a reasonable charge to any person applying therefor.

Section: 36A Further powers in relation to regulations and by-laws 30/06/1997


(1) Any regulations made under section 35 or by-laws made under section 36 may-
(a) require a passenger or intending passenger to comply with any reasonable direction given in the

interests of public safety by a driver, conductor or authorized person;
(b) authorize the removal from a bus of any person committing an offence against the regulations or by-

laws, as the case may be, by the driver, the conductor or an authorized person, or by a police officer at
the request of a driver, conductor or authorized person;

(c) require any person whom a driver, conductor or authorized person has reasonable grounds to believe
has committed an offence against the regulations or by-laws, as the case may be, to give his name and
proof of his identity to the driver, conductor or authorized person;

(d) authorize a driver, conductor or authorized person to arrest without a warrant and detain until he can be



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 23

handed over to a police officer, any person whom he has reasonable grounds to believe has committed
an offence under the regulations or by-laws, as the case may be.

(2) Any such regulations or by-laws may-
(a) authorize a police officer, to whom a person has been handed over under subsection (1)(d), to take

such person into custody without a warrant; and
(b) apply sections 51 and 52 of the Police Force Ordinance (Cap 232) to persons taken into custody under

the regulations or by-laws.
(Added 88 of 1988 s. 5)


Section: 37 Power to amend Schedule 62 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3


The Chief Executive may, by order published in the Gazette, amend the Schedule.
(Added 44 of 1984 s. 21. Amended 62 of 1999 s. 3)


Section: 38 Transitional 30/06/1997


For the avoidance of doubt it is hereby declared that, notwithstanding the provisions of a franchise, agreement or
other document under or in pursuance of this Ordinance, which franchise, agreement or document is in existence at the
commencement of the Public Omnibus Services (Amendment) Ordinance 1984 (44 of 1984) ("the amending
Ordinance"), the amendments to this Ordinance effected by the amending Ordinance shall apply to and in relation to
such a franchise, agreement or document in the same manner and to the same extent as they would apply to a
franchise, agreement or document granted or made after the commencement of the amending Ordinance.

(44 of 1984 s. 22 incorporated)

Section: 39 Saving of existing regulations 30/06/1997


Any regulation made under this Ordinance-
(a) whether in the exercise of the enabling powers in the Ordinance only or those and other enabling

powers; and
(b) which was in force immediately before the commencement of the Public Bus Services (Amendment)

Ordinance 1994 (66 of 1994) (the "amending Ordinance"),
shall continue to be in force and have effect as if made by the authority who, having regard to the subject-matter of the
regulation, is empowered to make that regulation on or after the commencement of the amending Ordinance and may
be amended or revoked by such authority.

(Added 66 of 1994 s. 5)

Schedule: SCHEDULE 30/06/1997


[section 12A]


CONTENTS OF PROGRAMME


A programme of the operations of a grantee for the following 5 years prepared in any year under section 12A
shall contain-

(a) a bus route development programme, together with details of proposed changes to the routes operated,
their frequency and vehicle allocation, on a monthly basis for the first 2 years of the programme and
half yearly thereafter;

(b) an estimate of the number and types of buses required in daily service to meet the requirements of the
route development programme referred to in paragraph (a);

(c) an estimate of the overall number of buses required to meet the daily public bus servicerequirements,
with allowance being made for a reasonable proportion of the buses being unavailable for use in the
operation of the service due to accidents, breakdowns or for any other reason;



Cap 230 - PUBLIC BUS SERVICES ORDINANCE 24

(d) a programme for the scrapping of buses that are or are likely to be unfit for use in the operation of the
public bus service, and for the purchase or construction of additional buses for the replacement of
buses that are to be scrapped or for the expansion of the fleet of buses for use in the operation of the
service;

(e) a programme for the provision and equipment of premises necessary for the construction, repair and
maintenance of vehicles used by the grantee in connection with its franchise and for the parking of all
such vehicles when they are not in use;

(f) a programme for the regular maintenance and servicing of all vehicles used by the grantee in
connection with its franchise;

(g) a forecast of the financial implications of the adherence to the overall programme prepared under
section 12A, including estimates of the timing and magnitude of any adjustments to fare levels that
may be necessary;

(h) any other matters, whether or not specified in paragraphs (a) to
(g) inclusive, as may be required by the Commissioner by notice in writing to the grantee.

(Schedule added 44 of 1984 s. 21)

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