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WEDNESDAY, MAY 5, 1982

FRANCHISED FERRY SERVICES

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ALTHOUGH A FRANCHISED FERRY COMPANY MIGHT BE REQUIRED TO PROVIDE AN INDIVIDUAL UNPROFITABLE SERVICE, THIS WOULD BE TAKEN

INTO ACCOUNT IN ASSESSING THE OVERALL PERFORMANCE AND PROFITABILITY OF THE COMPANY IN DETERMINING THE LEVELS OF FARE TO BE CHARGED AND THE PATTERN OF SERVICES TO BE PROVIDED.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, THE HON ALAN SCOTT, IN MOVING THE SECOND READING OF THE FERRY SERVICES BILL 1982 IN THE LEGISLATIVE COUNCIL TODAY.

MR SCOTT SAID CONCERN HAD BEEN EXPRESSED BY THE FERRY COMPANIES ABOUT THE POWERS CONFERRED UPON GOVERNMENT BY THE PROVISIONS IN THE BILL, AND ABOUT THE MORE DETAILED STIPULATIONS COVERING SIMILAR AREAS OF GOVERNMENT CONTROL IN THE FRANCHISES.

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+THEIR ANXIETY, AS UNDERSTAND IT, IS THAT THE FERRY COMPANIES MAY BE REQUIRED TO OPERATE UNPROFITABLE SERVICES AGAINST PRUDENT COMMERCIAL PRINCIPLES, AND THEREBY SUFFER FINANCIAL LOSS,+ HE SAID.

MR SCOTT POINTED OUT THAT THE SERVICES WHICH ARE THE SUBJECT OF THESE PROVISIONS ARE PUBLIC TRANSPORT SERVICES AND IT IS NECESSARY IN THE INTERESTS OF THE TRAVELLING PUBLIC THAT THE GOVERNMENT SHOULD BE ABLE TO EXERT A DEGREE OF CONTROL OVER THE PROVISION OF SERVICES.

+ALTHOUGH CIRCUMSTANCES MAY ARISE IN WHICH IT WOULD BE NECESSARY TO DIRECT A FRANCHISED FERRY COMPANY TO PROVIDE A SERVICE WHICH AS AN INDIVIDUAL SERVICE MIGHT BE UNPROFITABLE, GOVERNMENT IS BOUND TO TAKE SUCH FACTORS INTO ACCOUNT WHEN ASSESSING THE OVERALL PERFORMANCE AND PROFITABILITY OF THE FRANCHISED OPERATORS IN THE CONTEXT OF DETERMINING THE LEVELS OF FARES TO BE CHARGED AND THE OVERALL PATTERN OF SERVICES TO BE PROVIDED, HE SAID.

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