A
17211
11979
CONFIDENTIAL ##
For discussion
on 26th February 1980
HK k172/1
機密
나
XCC(80)20
Copy No. Page 1
of40
PA J22.2
MEMORANDUM FOR EXECUTIVE COUNCIL
Peak Tramway Ordinance (Chapter 265)
PEAK TRAMWAY (TOLLS) ORDER 1980
Introduction
On 27th November 1979, the Council considered memorandum XCC(79)106, a copy of which is at Annex A. The Council advised and the Acting Governor ordered, inter alia, that the proposal to charge a nominal permit fee of $25,000 for each of the calendar years 1978, 1979 and 1980 should be reconsidered, in consultation with the Transport Advisory Committee and a further memorandum submitted.
B
2
The Peak Tramways Company was informed of the Council's decision and, following discussions with the Government, the Company submitted an application for a fare increase. The application was supported by projections of the Company's profit and loss accounts to 1982; a copy of these projections is at Annex B.
C 3
The existing fare structure for the Peak Tram is at Annex C.
Proposed fare increase
4
If no fare increase is approved in 1980, revenue and cost predictions indicate that the Company would just manage to break even over the year. Thus the Company will need an increase in revenue as soon as possible if it is to make a reasonable profit. Instead of a two-tier fare of $1 or $1.50, according to distance, the Company's present application is for a flat fare structure of $2 for adults, irrespective of distance tra- velled, and $1 for children under the age of twelve. The Company also proposes to offer a concessionary fare of $1 to students under 16 wearing school uniform from Monday to Saturday (public holidays excepted) between 7,00a.m. and 7.00 p.m..
Financial implications of the Company's proposal
5
The Company's forecast profit and loss accounts for 1980- 1982 (at Annex B) have been examined by the Financial Monitoring Unit of the Economic Services Branch, which is satisfied that the projections are reasonable. Assumptions made in compiling the projections include:-
G.S. 166
CONFIDENTIAL #3
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