5
TUESDAY, SEPTEMBER 25, 1990
TAC RECOMMENDS HK FERRY FARE RISES
*
THE TRANSPORT
ADVISORY COMMITTEE (TAC) TODAY (TUESDAY) RECOMMENDED AN INCREASE IN FARES APPLIED FOR BY THE HONG KONG AND YAUMATI FERRY COMPANY.
IN EXAMINING THE FERRY COMPANY'S FARE RISE APPLICATION, THE COMMITTEE HAD TAKEN INTO CONSIDERATION THE ESCALATING OPERATING COSTS, INCLUDING FUEL COST RISES, AND UNFAVOURABLE BUSINESS CONDITIONS RESULTING IN SUSTAINED PATRONAGE LOSSES ON THE COMPANY'S CROSS-HARBOUR SERVICES.
AT CURRENT FARES, THE COMPANY'S PROFITS ARE FORECAST TO DROP FROM $44.9 MILLION IN 1989 TO $23.5 MILLION IN 1990, WHILST A LOSS OF $1 MILLION IS PREDICTED FOR 1991.
THE FARE RISE APPLICATION HAD BEEN ASSESSED BY THE TRANSPORT DEPARTMENT AND THE FINANCIAL MONITORING UNIT OF THE ECONOMIC SERVICES BRANCH.
TAC FELT THAT THE PROPOSED FARE INCREASES WERE NECESSARY FOR THE FERRY COMPANY TO MAINTAIN ITS CURRENT LEVEL OF SERVICE AND то UNDERTAKE THE IMPROVEMENTS SET OUT IN THE FORWARD PLANNING PROGRAMME.
TAC NOTED THAT COMMUTERS OF INNER-HARBOUR AND NEW TOWN SERVICES, INCLUDING OUTLYING ISLANDERS, ARE SUBSIDISED PRIMARILY BY WEEKEND PICNICKERS.
TAC ALSO AGREED THAT TRANSPORT DEPARTMENT SHOULD LIAISE WITH THE FERRY COMPANY TO INTRODUCE WEEKEND RETURN TICKETS FOR ISLANDERS NOT USING A MONTHLY TICKET TO AVOID THE ENHANCED WEEKEND FARES.
TAC'S RECOMMENDATIONS ON THE FARE RISES WILL BE THE EXECUTIVE COUNCIL FOR A FINAL DECISION.
MEANWHILE, THE TAC WAS BRIEFED ON THE REVISED FARE GREEN MINIBUS SERVICES.
FORWARDED TO
SCALES FOR
TERRITORIES
IN JULY 1990, THE HONG KONG, KOWLOON AND THE NEW PUBLIC MAXICAB OPERATORS GENERAL ASSOCIATION APPLIED FOR AN INCREASE IN THE GREEN MINIBUS FARE SCALES DUE TO INCREASED OPERATING AND MAINTENANCE COSTS.
TAC NOTED THAT ACCORDING TO A STUDY COMPLETED BY THE TRANSPORT DEPARTMENT ON THE FINANCIAL SITUATION OF THE TRADE, THE GENERAL PROFITABILITY OF THE TRADE HAD NOT IMPROVED SINCE JUNE 1989 AND THAT 93 OUT OF THE 184 ROUTES SURVEYED WERE OPERATING AT A LOSS.
TAKING INTO ACCOUNT THE CONSIDERABLE INCREASE IN THE OPERATING COSTS AS A RESULT OF THE FUEL TAX INCREASE IMPLEMENTED EARLIER THIS YEAR AND THE RECENT FUEL PRICE RISES, THE TRANSPORT DEPARTMENT CONSIDERS IT NECESSARY TO REVISE THE MAXIMUM FARE CEILINGS FOR GMB SERVICES.
/THE REVISED