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Third, Star Ferry's performance - the Company has consistently provided a high level of services, in terms of both adequacy and quality. Its ferries are clean and comfortable, and certainly good value for money. This is borne out by the fact that in the calendar year 1995, there were only three complaints.
Fourth, the Star Ferry's own efforts to economise - the Company has made conscious efforts to keep operating costs down. These include a bridge control automation programme completed in 1994 and special training for its coxswains on measures to safeguard the fender system, resulting in cost savings of $4 million per year. This clearly demonstrates Star Ferry's willingness to cut costs whilst striving to maintain quality services to commuters. Unfortunately, even with such internal economy measures, total costs have still gone up, necessitating a fare rise.
Fifth, a pier development package - Some Members have asked why not grant Star Ferry pier development rights to help redress the situation, particularly since there is already a precedent vis a vis the Hong Kong and Yaumati Ferry Company (HYF). The answer is that we are not comparing like with like. In Star Ferry's case modest adjustments in fares at regular intervals would suffice but not so for HYF which requires a substantial injection of funds to make their services viable and even then they would require annual fare increases in line with inflation. In short, a transport justification to support a pier development package for Star Ferry has not been established.
Several honourable members have suggested that the Government should be more pro-active in supporting ferry services, for example, by taking on some responsibility for pier maintenance. I shall certainly follow this up. I also look forward to the motion debate on the review of long term ferry policy which I understand the Honourable Miriam has given notice to propose. This would provide an opportunity for a further exchange of views.
Mr President, Star Ferry's submission has been vetted very meticulously by the Sub-Committee chaired by the Hon Selina Chow. May I record the Administration's appreciation to her and all Members for their time and interest. Not surprisingly. and possibly because of the predetermined stance on the part of the Democrats and the ADPL to deny any fare increase, an unanimous view could not be reached.
May I add a personal observation on this point: I am surprise that the Honourable Zachary Wong has attempted to criticised the DAB for changing their minds. In fact credit is due to them for their preparedness in analysing the facts and coming to the right decision. Mr President, we have to be realistic and pragmatic. The very modest fare increase sought by the Star Ferry is fully justify. I urge honourable members to vote against both resolutions.
End