6
TABLE 1
1987/88
$M
1988/89 1989/90
$M
$M
1990/91
$M
Projected ANFA (Historic Cost)
1,595.4 1,858.0
2,089.5 2,233.4
Surplus Limitation
15% ANFA
239.3
278.7
313.4
335.0
15.5% ANFA
247.3
288.0
323.9
346.2
16% ANFA
255.3
297.3
334.3
357.3
16.5% ANFA
263.2
306.6
344.8
368.5
17% ANFA
271.2
315.9
355.2
379.7
17.5% ANFA
279.2
325.2
365.7
390.8
18% ANFA
287.2
334.4
376.1
402.0
Actual Projected Post-Tax Surplus at Present Charge Levels
(excluding interest)
4.1.6
291.7
308.8
289.3
291.0
The above figures indicate that the surplus expected
to be generated in the medium term is not out of step
with what might be considered a range of reasonable
rates of return.
4.1.7 An efficient business should generally expect to see
its profit rise in line with inflation and growth in
business volume. A noticeable feature of HKIA is the
dominance of the land figure in the ANFA base and
the fact that this is substantially static and can be
expected to remain so for the foreseeable future.
Between 1977 and 1990 for example the land figure is
only expected to increase from $780m to $930m. This
would tend to "freeze" a substantial part of the rate
of return calculated on this basis and, to compensate
for the inability to see its surplus rising in line