SPEECH BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL : THURSDAY 18 APRIL 1985
Sir,
In accordance with section 16(4) of the Mass
Transit Railway Corporation Ordinance (Cap.270), the annual report and accounts of the Mass Transit Railway Corporation for the year ended 31 December 1984 were tabled yesterday.
The Mass Transit Railway carried 411 million passengers in 1984, a slight reduction from 412 million in 1983. Total fare and other recurrent revenues earned
by the Corporation rose by 13% to $1,168 million. Operating profit before depreciation increased by 16% to $647 million, equivalent to 55% of revenue. The profit before interest and finance charges increased to $318 million, a 26% improvement on 1983. Because of the need to service heavy interest and finance charges, the Corporation suffered a loss of $355 million, which is 53% less than 1983. The profits realised from property developments and reduced interest charges as a result of the strong Hong Kong dollar in 1984 have contributed significantly to this reduction.
New loan facilities negotiated by the Corporation during 1984 totalled $3.5 billion. By the end of 1984 loans raised by the Corporation totalled $26.5 billion.
As a
result of the cumulative losses suffered by the Corporation over the past 5 years, shareholders' funds at year end were reduced to $2,843 million. The Government shares the Corporation's concern about the rate at which the shareholders' funds are being depleted and is now considering suitable measures to improve the Corporation's financial position.