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FRIDAY, OCTOB R 31, 1975
SINCE THEN EXPENDITURE, PARTICULARLY ON ELECTRICITY AND WAGES, HAS CONTINUALLY INCREASED. IN 1974 ALONE, THE COST OF ELECTRICITY INCREASED BY 136 PER CENT OVER THE PREVIOUS YEAR, WHILE WAGES FOR TRAFFIC STAFF ROSE BY 21 PER CENT AND THOSE FOR REPAIR AND MAINTENANCE STAFF WENT UP BY 41 PER CENT.
THE SPOKESMAN POINTED OUT THAT THERE WAS VERY LITTLE SCOPE F. THE TRAMWAY COMPANY TO INCREASE ITS REVENUE BY CARRYING MAAL PASSENGERS, EVEN IF THE NUMBER OF VEHICLES WERE TO BE INCREASED. THIS IS BECAUSE OF THE VERY INTENSE UTILIZATION ALMEADY BEING MADE OF THE EXISTING TRACK AND ROLLING STOCK.
THE TRANSPORT ADVISORY COMMITTEE HAS ADVISED THAT IF THE COMPANY IS TO MAINTAIN ITS PRESENT LEVEL OF SERVICE, THERE IS NO ALTERNATIVE TO AN INCREASE IN THE FARE.
THIS ADVICE HAS BEEN ACCEPTED BY THE GOVERNOR IN COUNCIL AND A BILL WHICH, AMONG OTHER THINGS, SEEKS TO PROVIDE FOR THE INCREASE WAS PUBLISHED TODAY, AND WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL EARLY NEXT MONTH.
THE LAST INCREASE FOR THE PEAK TRAMWAYS COMPANY WAS ALSO IN 1972. HOWEVER, SINCE THEN THE INCREASED REVENUE GENERATED BY THE NEW FARES HAS BEEN MORE THAN OFFSET BY RAPIDLY RISING OPERATING COSTS.
IN THE PAST TWO YEARS, 'THERE HAS BEEN A 62 PER CENT INCREASE IN ELECTRICITY CHARGES ARISING FROM SUBSTANTIAL INCREASES IN FUEL OIL COSTS. SINCE 1973, WAGES HAVE GONE UP BY 76 PER CENT.
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THE COMPANY IS FACING A CRITICAL CASH FLOW SITUATION AND SAYS IT WILL BE HARD-FRESSED TO FIND THE MONEY TO EMBARK ON A COSTLY CAPITAL REPLACEMENT PROGRAMME NOW UNDER WAY, AND WHICH IS NECESSARY TO MAINTAIN THE HIGH SAFETY STANDARDS REQUIRED OF THIS TRAMWAY.
INCLUDED IN THIS IS AN ITEM OF MACHINERY PURCHASED LAST MONTH AT A COST OF $117,000, TOGETHER WITH THE PURCHASE OF HAULAGE ROPES, THE PRICE OF WHICH HAS INCREASED 30) PER CENT IN THE PAST 10 YEARS.
THE COMPANY IS ALSO REPLACING, REPAIRING OR REFURNISHING OTHER ITEMS OF MACHINERY= AND IN EARLY 1976 WILL UNDERTAKE A TRACK REPLACEMENT PROGRAMME COSTING ABOUT $120,000.
BECAUSE OF THE NEED TO MAINTAIN A VIABLE PUBLIC TRANSPORT SYSTEM, AND TO KEEP FARE INCREASES TO A MINIMUM, PROPOSALS TO WAIVE ROYALTY PAYMENTS TO THE GOVERNMENT BY THE STAR FERRY COMPANY FOR THE YEARS 1974, 1975 AND 1976 AND TO DISCONTINUE THEM ALTOGETHER FOR HONG KONG TRAMWAYS WILL ALSO BE SUBMITTED TO THE LEGISLATIVE COUNCIL FOR APPROVAL.
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