WEDNESDAY, OCTOBER 17, 1979
LEGCO APPROVES YAUMATI FERRY FARE INCREASES
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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PASSED A MOTION TO GRANT INCREASES FOR BOTH PASSENGER FARES AND FREIGHT CHARGES ON ALL SCHEDULED SERVICES OF THE HONG KONG AND YAUMATI FERRY COMPANY.
THE INCREASES WILL COME INTO EFFECT ON NOVEMBER 1 AND UNDER THE NEW FARE STRUCTURE, THE CROSS-HARBOUR FARES WILL BE RAISED FROM 40 CENTS TO 50 CENTS FOR ADULTS AND FROM 20 CENTS TO 30 CENTS FOR CHILDREN.
THE FARE INCREASES FOR OUTLYING DISTRICT AND TOLO HARBOUR SERVICES ARE IN THE ORDER OF 50 PER CENT. HOWEVER, ON THE WELL PATRONISED SERVICES FROM CHEUNG CHAU AND SILVERMINE BAY TO CENTRAL, THE WEEKDAY INCREASES WOULD BE A THIRD FROM $1.50 TO $2.
THE FREIGHT CHARGE INCREASES WOULD BE IN THE ORDER OF 100 PER CENT, BUT THERE WILL BE NO INCREASES IN VEHICULAR FERRY CHARGES.
MOVING THE MOTION IN THE LEGISLATIVE COUNCIL, THE SECRETARY FOR THE ENVIRONMENT, THE HON. DEREK JONES SAID WITH THESE INCREASES, THE COMPANY'S PROFITS ON FERRY OPERATIONS, GIVEN THE INCREASED COSTS AND THE PROSPECTIVE LOSS OF CROSS-HARBOUR PASSENGERS TO THE MASS TRANSIT RAILWAY, ARE EXPECTED TO REMAIN RELATIVELY LOW AND NO HIGHER ON AVERAGE IN 1979 AND 1980 THAN IN 1978.
THE RATE OF RETURN ON AVERAGE NET FIXED ASSETS IS PREDICTED TO BE ABOUT SEVEN PER CENT IN 1979 AND SIX PER CENT IN 1980 COMPARED WITH SIX PER CENT IN 1978.
+THIS IS NOT A GOOD PROSPECT AND, GIVEN THE UNCERTAINTIES OF THE SITUATION, CAREFUL MONITORING OF DEVELOPMENTS OVER THE NEXT 12 MONTHS WILL BE NECESSARY TO ENSURE THAT THE FERRIES REMAIN VIABLE, MR. JONES SAID.
HE DID NOT RULE OUT THE POSSIBILITY OF A FURTHER INCREASE IN FARES ON THE CROSS-HARBOUR SERVICES DURING 1980 AND THAT SOME OF THE LESS PROFITABLE SERVICES MAY HAVE TO BE CURTAILED.
MR. JONES POINTED OUT THAT THE YAUMAT: FERRY COMPANY THIS YEAR HAS HAD TO FACE VERY SIGNIFICANT INCREASES IN COSTS.
+THE MOST DRAMATIC INCREASE HAS BEEN IN FUEL COSTS WHICH ARE EXPECTED ON AVERAGE THIS YEAR TO BE ABOUT 60 PER CENT HIGHER THAN IN 1978, AND ARE PROJECTED NEXT YEAR TO BE AS MUCH AS 140 PER CENT GREATER THAN LAST YEAR.
+ IF THIS TRANSPIRES THE INCREASE IN FUEL COSTS ALONE IN 1980 COMPARED WITH 1978 WILL COME TO MORE THAN TWICE THE 1978 PROFITS ON FERRY OPERATIONS.
+ON TOP OF THIS, THERE HAVE ALSO BEEN SIGNIFICANT INCREASES IN WAGES, MAINTENANCE AND OTHER COSTS. AND IN 1980, THE COMPANY EXPECTS TO EXPERIENCE A DROP OF UP TO A FIFTH IN PASSENGERS ON ITS CROSS-HARBOUR ROUTES AS A RESULT OF COMPETITION FROM THE MASS TRANSIT RAILWAY.+
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