13
With regard to paragraph 11(b), passenger figures for these services are included in Annex B. These indicate a steady decline since 1975, which is mainly attributable to the growing popularity of Cross Harbour bus services. However, there has been an increase of about 7% in cross harbour passengers and 9% in cross harbour revenue
in the first five months of 1979: the reason for this increase is not entirely clear, but is attributable in part to an increase-in patronage on the Tsuen Wan and Mei Foo routes, and possibly to the recent influx of immigrants from China and refugees from Vietnam.
14
With regard to paragraph 11(c), passenger figures for these services are also, included in Annex B. Outlying District services have experienced considerable traffic growth over the period and are expected to continue to grow, particularly in respect of recreational traffic at weekends, This is mainly due to the growing affluence of the population and recent legislation concerning paid holidays for working people.
Factors necessitating a fare increase
The main factors necessitating a fare increase are:
15
(a)
increasing fuel costs;
(b)
projected loss of passengers to the MTR; and
(c)
general rising labour, maintenance, and other costs.
C
Details of projected revenue and expenditure are included in Annex C.
16
With regard to paragraph 15(a), fuel costs in 1979 are expected to be about 60% up on 1978, and in 1980 are expected to be about 140% up on 1978. The increase in 1979 in the fuel bill alone is almost equivalent to total ferry services profits in 1978, while the expected figure in 1980 compared to 1978 is equivalent to more than twice the 1978 profits.
17
With regard to paragraph 15(b), projected passenger loss to the MTR is 17% of passengers on all cross harbour routes. This would amount, at the proposed fare rates, to a loss of something in the region of $8m. per annum. Ferry services likely to be directly affected by the MTR are:
G. 66
(a)
Jubilee Street Jordan Road;
-
(b)
·
Wan Chai Hung hom;
CONFIDENTIAL ##