REVENUE
4.1
4.2
4.3
4.4
The basic revenue projections applied to the modified initial system considered by the Provisional Authority at the December meeting were those pre- viously used by the Financial Advisers, which in 1974 terms gave an 80¢ minimum fare plus 40¢ for each subsequent fare stage, which when projected forward at 7% p.a. gave for 1980 a $1.20 minimum fare plus 60¢ for each subsequent stage. This gave an inadequate total revenue, and the "optimistic" development of the revenue for the modified system added 30% to this figure. This represents after rounding off a minimum fare in 1980 of $1.50 plus 75¢ for each additional stage, or in 1974 terms a $1.00 minimum plus 50¢. This latter basis has been retained in the current exercise.
The modified initial system confines the railway to two particular journeys or a combination of them, the journey to and from Central to the Nathan Road area, and journeys between Nathan Road and the Kowloon Bay areas. Both these journeys by road are congested and are likely to remain so. Under the proposed tariff a journey by MTR from Chater to Jordan, a third of the way up Nathan Road, would cost $1.00 in 1974 terms. From Chater to the top of Nathan Road would cost $1.50. The alternative cost via bus and road tunnel would be $1.00 in both cases, or via bus and ferry 68¢ or 95¢ respectively. It is felt that the reduced travelling and waiting times, together with the airconditioned environment of the MTR, particularly during the warmer months, will allow the increased cost to be competitive.
The journey between Argyle at the top of Nathan Road and Kwun Tong (the Eastern most station on the modified system), would cost $1.00 - $1.50 by bus the cost would be 44¢. Again, for the same reasons, a premium is felt to be acceptable.
J
The anticipated increase in road congestion by 1980 has been a material factor in arriving at these tariffs, particularly as it affects waiting time for buses as well as adding to the travelling time.