Fares on the first five ferry services can be altered administratively by the Commissioner for Transport by virtue of the conditions of the licence. Nevertheless, HYF's proposals for the se services will be treated as part of the overall exercise, and will be implemented subject to Members' advice. The ferry services from Shau Kei Wan to Kwun Tong and Shau Kei Wan to Sam Ka Tsuen are licensed under section 5 of the Ferries Ordinance and, by virtue of regulation 16(1) of the Ferries Regulations, any increase in the fares for those services is to be fixed by the Governor-in-Council.
Consideration within Government and by the Transport Advisory Committee
36
The Financial Monitoring Unit of the Economic Services Branch has examined the se proposals in detail and is satisfied that they are necessary if the viability of the Company's ferry services is not to be seriously impaired. The Transport Advisory Committee has also been consulted on the proposals and supports them.
Other Public Transport Companies
37 The recent dramatic increases in the cost of fuel, as well as other escalating costs, have also affected other Transport Companies, and applications for fare increases have already been submitted by the two major bus companies. An application for waiver of permit fees has been made by the Peak Tram Company, and recommendations on this question will shortly be submitted to Council. Applications have not been made by other companies as yet, but can be expected in the future.
Hongkong & Yaumati Ferry (Cne -Class Fares) Notification
38 This notification was made in 1973, and specified the maximum fares which may be charged by the Company on a number of Outlying Islands routes to be served by ferry vessels provided with one-class accommodation (with the exception of fares which may be charged in respect of deluxe class accommodation, if provided). The notification has been effectively superceded by subsequent revisions to the scale of fares and charges, and has outlived its purpose. It is recommended that the opportunity be taken to cancel the notification, and a draft notification to this effect is at Annex F.
Public Reactions
39
Various announcements have been made to the press by HYF and the major bus companies about proposals for fare increases. The public is also fully aware of increases in oil prices and other costs in the course of the last year.
To this extent the public is expecting an increase in fares,
G.S. 166
CONFIDENTIAL