G.S. 84
1
RESTRICTED
XCR(79)53
· 3
Fares
Boat Hire & Sundry Income
Less Expenses
1975
1976
1977
1978
$
$
$
$
536,086 592, 320
666, 206
14, 104
15,490
81, 638
775, 447 77,775
550,190 607,810
747,844 853, 122
Wages and Allowances
198,469 218, 829
Fuel
74,694 93,027
308,932 372, 581 112,773 142, 851
Repairs and Maintenance
135,900 167, 192
155, 260 170, 935
Licence Fee
60,000 60,000
Depreciation
70, 902 39,352
60,000 57,840 68, 102
60,000
Other Expenses
Operating Profit/(Loss) for
Year
Loss on Disposal of Launches Total Profit/(Loss) for the Year
8
28,496 5,417
502,976 649, 302
48,722
43, 521
743, 527 857,990
47,214 (41,492)
4,317 (4,868)
(47,927) 47,214 (89,419) 4,317 (4,868)
As a consequence of the unsatisfactory trading results of the company, the position at 31st December 1978 was that cumulative losses amounted to over $97,000 and Current Liabilities exceeded Current Assets by some $170,000, a situation which cannot be allowed to continue.
9
At the request of Government the company's auditors have carried out an analysis of the results for 1977 and 1978 of the Hei Ling Chau service, which is the only other service operated by the Company. The analysis shows that there is no question of any material cross-subsidisation of the Hei Ling Chau service by the other routes which are operated,
10
If the proposed fare increases are approved with effect from March 1st 1979, the Financial Monitoring Unit of the Economic Services Branch are of the opinion that the company will, in the year ended 31st December 1979 make a profit of approximate $205,000.
This forecast is based on the following assumptions:
(i)
That there will be minimal passenger resistance, as there is no real alternative travel facility.
RESTRICTED
Page 60Page 61