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WEDNESDAY, MARCH 19, 1986
+ THE FUND IS, HOWEVER, INSUFFICIENT TO COVER THE COST OF THE PROPOSED REDEVELOPMENT SCHEME. IN THE CIRCUMSTANCES, THE GROUP PROPOSES TO RAISE THE NECESSARY FUNDS BY COMMERCIAL BORROWING WITH THE CREATION OF MORTGAGES AS SECURITY, HE ADDED.
ON REPAYMENT OF THE LOAN REQUIRED FOR THE PROJECT, IT WAS EXPECTED THAT THE FUND WOULD BE 900STED BY AN ADDITIONAL NET INCOME OF ABOUT $7 MILLION PER ANNUM, MR LIAO SAID.
+THIS WILL ENABLE THE GROUP TO IMPROVE THE RANGE OF CHARITABLE SERVICES FINANCED BY THE FUND,+ HE SAID.
UNDER THE BILL, A NEW SECTION HAD BEEN ADDED TO THE PRINCIPAL ORDINANCE TO PERMIT THE GROUP, SUBJECT TO THE APPROVAL OF THE GOVERNOR, TO ACQUIRE, DISPOSE OF AND MORTGAGE ANY PROPERTY BELONGING TO THE FUND, MR LIAO SAID.
+INCIDENTAL POWERS SUCH AS THE ENGAGEMENT OF PROFESSIONAL OR EXPERT PERSONS ARE ALSO INCLUDED, HE ADDED.
VARIOUS FACTORS IN FIXING FARE LEVELS *****
A REDUCTION IN OVERALL REVENUE AS A RESULT OF DECLINING PATRONAGE WOULD BE ONLY ONE OF THE FACTORS TO BE TAKEN INTO ACCOUNT IN DETERMINING APPROPRIATE PUBLIC TRANSPORT FARE LEVELS, THE SECRETARY FOR TRANSPORT, THE HON IAN MACPHERSON, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
REPLYING TO A QUESTION BY THE HON LEE YU-TAI, MR MACPHERSON SAID FACTORS OTHER THAN PATRONAGE AND REVENUE INCLUDED CAPITAL EXPENDITURE, OPERATING COSTS INCLUDING WAGES, GENERAL INFLATION, EXCHANGE AND INTEREST RATES AND LEVELS OF SERVICE.
+FARES CHARGED BY PUBLIC TRANSPORT OPERATORS ARE SET AT A LEVEL WHICH WILL GENERATE SUFFICIENT INCOME OVERALL TO COVER OPERATING COSTS AND AS FAR AS POSSIBLE A REASONABLE RETURN ON INVESTMENT,+ MR MACPHERSON SAID.
HE SAID THE OPENING OF THE MTR ISLAND LINE ON MAY 30 LAST YEAR HAD RESULTED IN A SIGNIFICANT INCREASE IN MTR PATRONAGE, LARGELY AT THE EXPENSE OF FRANCHISED BUSES, FERRIES AND MINIBUSES.
+BY DECEMBER 1985, MTR PASSENGER VOLUME HAD INCREASED BY 26 PER CENT OVER PRE-ISLAND LINE LEVELS FROM 1.1 MILLION TO 1.4 MILLION PASSENGERS PER DAY, AND BUS AND FERRY PATRONAGE HAD CONSEQUENTIALLY DECREASED BY 11 PER CENT AND FIVE PER CENT RESPECTIVELY, HE SAID.
'THE HARDEST