22
WEDNESDAY, APRIL 4, 1990
FURTHER INCREASE IN MTR PATRONAGE EXPECTED
THE ΤΟ
FURTHER INCREASES IN PASSENGER TRAFFIC ARE EXPECTED FOR MASS TRANSIT RAILWAY CORPORATION AND THE CORPORATION WILL CONTINUE ADOPT APPROPRIATE MEASURES TO SPREAD PEAK HOUR DEMAND AS WELL AS TO ENCOURAGE GREATER USE OF THE EASTERN HARBOUR CROSSING, THE ACTING FINANCIAL SECRETARY, MR DAVID NENDICK, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
TABLING THE MASS TRANSIT RAILWAY CORPORATION ANNUAL REPORT 1989 IN THE LEGISLATIVE COUNCIL MR NENDICK SAID ACCORDING TO THE REPORT AND ACCOUNTS OF THE MASS TRANSIT RAILWAY CORPORATION FOR THE YEAR ENDING DECEMBER 31, 1989, THE CORPORATION CONTINUED ΤΟ ENJOY A PERIOD OF SUSTAINED GROWTH LAST YEAR CARRYING SOME 688 MILLION PASSENGERS, AN INCREASE OF NINE PER CENT OVER 1988.
"THE OPENING OF THE RAIL SECTION OF THE EASTERN HARBOUR CROSSING TO PASSENGER SERVICE IN SEPTEMBER 1989 BOTH GENERATED ADDITIONAL RIDERSHIP AND PROVIDED A MUCH WELCOME RELIEF ΤΟ THE CONGESTED NATHAN ROAD CORRIDOR," MR NENDICK SAID.
FARE REVENUE FOR THE CORPORATION ROSE BY 15 PER CENT TO $2,381 MILLION; TOGETHER WITH ADDITIONAL REVENUE FROM OTHER SOURCES SUCH AS PROPERTY RENTALS AND ADVERTISING, THE TOTAL REVENUE FOR LAST YEAR WAS $2,734 MILLION OR 18.5 PER CENT HIGHER THAN THE FIGURE FOR 1988.
TOTAL COSTS WERE UP BY 16 PER CENT MAINLY REFLECTING THE
: 'ONTINUED UPWARD PRESSURE OF STAFF COSTS.
THE CORPORATION'S PROFIT BEFORE INTEREST AND FINANCE CHARGES INCREASED TO $1,049 MILLION, SOME 25 PER CENT OVER THE PREVIOUS YEAR.
INTEREST AND FINANCE CHARGES OF $1,597 MILLION WERE PAID IN LAST YEAR, GIVING A LOSS OF $548 MILLION AS AGAINST $535 MILLION IN 1988.
INCOME FROM PROPERTY DEVELOPMENT OF $579 MILLION ENABLED THE *ORPORATION TO SUSTAIN A MODEST OVERALL PROFIT OF $56 MILLION IN 1989.
"HOWEVER," MR NENDICK SAID, "IN VIEW OF THE NON-RECURRENT NATURE OF PROPERTY DEVELOPMENT PROFITS, IT WILL BR SOME TIME BEFORE RAILWAY OPERATING REVENUE WILL REGULARLY PRODUCE A NET PROFIT FOR THE CORPORATION."
WITH THE CORPORATION'S DEBT BEING $17,390 MILLION AT THE END 1989, JT DID NOT ANTICIPATE THAT THERE WOULD BE A NEED FOR ANY LURTHER CALLS ON THE PARTLY PAID SHARES.
OF
BECAUSE THE CORPORATION WOULD CONTINUE TO HAVE A LARGE BURDEN OF DERT TOK QUITE SOME TIME, MR NENDICK SAID IT WAS IMPORTANT THAT THE CORPORATION CONTINUED TO MAINTAIN RESPECTABLE CREDIT RATINGS TO ENSURE THAT IT WAS WELL REGARDED IN THE INTERNATIONAL FINANCIAL MARKETS.
/"I AM