(ii) Interest Receivable

As there was a decline in the balance of the Treasury Current Account during the year this resulted in less interest receivable.

Expenditure

51.

As with income, expenditure also rose during the financial year, but at a faster rate which caused the surplus of $4.110 m in 1976/77 to fall to $1.414 m in 1977/78. Overall expenditure increased by 23.7% from $34.798 m to $43.048 m. The main reasons for the rise were due to :-

(i)

Staff costs rising by 20% because of increases in salaries, on-costs and personnel.

(ii) General Operating Expenses

Fuel, light and power costs increased by 10% due to higher costs and increases in trains.

- Maintenance costs incurred extra expenditure from changes

in type of replacement track, more rolling stock and general increases in materials and labour.

- Rates were reassessed by Rating and Valuation Department to

take account of the facilities at the new terminal at Hung Hom.

(iii) Payments to Contractors for work on goods services

These increased by 19.5% due to the increase in those goods imported from China which are handled by Contractors.

(iv) Administration

(v)

From the previous year there was a rise of 6.6% mainly from general cost increases.

Depreciation

This item increased by nearly $1.5 m resulting mainly from the inclusion of initial depreciation costs of Hung Hom Terminal.

Fixed Assets

52.

$9.771 m.

Within 1977/78 the total additions to fixed assets amounted to

The major items were:

Building

Hung Hom Staff Quarters Fo Tan Sidings

$3.160 m

$1.617 m

Ho Man Tin Sidings

$1.353 m

Rolling Stock

: Additional Train Set

$0.312 m

Plant

: Wheel lathe

$1.218 m

Bridges

: Duplication of No. 11

$1.489 m

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