A
8
RESTRICTED
3
XCR(79)27
The detailed profit and loss statement and balance sheet for 1976 and 1977, prepared by the Company's accountants, are attached at Annex A for Members' information. These show that the Company's financial position in respect of 1976 and 1977 was weak, as highlighted below:
9
(a)
(b)
(c)
The Company made a net loss of $89, 419 during 1976. The profit of $4,317 in 1977 represents a return of 1.2% on average net fixed assets of $349, 305 as at 31st December 1977;
There was a cumulative adverse balance in the Company's profit and loss account of $96,937 at the end of 1976 and $92, 619 at the end of 1977; and
Current liabilities exceeded current assets by $250, 787 in 1976 and by $237, 380 in 1977.
The Financial Monitoring Unit of the Economic Services Branch has confirmed that the proposed fare increases represent a reasonable means of improving the Company's financial position. In these circumstances, and in view of the need to continue to provide ferry services on these routes, the Commissioner for Transport supports the fare revisions sought by the Hop Shing Kung Company Limited.
B
10
A draft licence which it is proposed to grant to the Hop Shing Kung Company Limited, with effect from 1st February 1979 is attached at Annex B. The Commissioner for Transport has issued a temporary licence under regulation 60 of the Ferries Regulations to cover the period between 1st December 1978 and 31st January 1979.
Transport Advisory Committee
11
The Transport Advisory Committee has been consulted and has advised that the Company's licence should be renewed for a further three years and that their proposed fare increase should be supported.
Public Relations Aspects
12
The City District Officer, Kwun Tong has sought the opinion of local residents on these proposals. Some criticism of the amenities at the ferry piers was noted but, in general, residents
G.S. 84
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