8
Wednesday, June 7, 1972
"At present levels of fares this falling off in numbers of
passengers can only means steadily declining revenue for the Tramways
in the face, as I have said, of steadily increasing costs. As a result
profits will continue to fall until, before very long, the operation
will begin to run into the red."
The Financial Secretary said it was clear, in these circumstances,
that measures must be taken to improve the company's financial position
if it was to continue to perform efficiently its proper role in the
overall public transport system on Hong Kong Island,
He pointed out that the elimination of royalty and the abolition
of statutory concessions to members of the armed forces and Government
uniformed personnel travelling on trams would still not be sufficient
to prevent a further deterioration of the company's financial position.
The pincers of rising costs and falling revenue could only be
prised open by a general fare adjustment, he said.
Various courses were examined by both the Government and the
Transport Advisory Committee in the light of their possible consequences
for passengers as well as for the company's finances. The only viable
course seemed to be the abolition of the present two-class fare structure
by introducing a single 20-cent flat fare.
"On top of the increased revenue this would bring in, it would
have the additional merit of increasing operational efficiency and
flexibility," Mr. Haddon-Cave said. "Furthermore, the social attitudes
that led to the establishment of a two-class fare structure on the
Tramways as long ago as 1911 are obviously outdated."
The Financial