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Star Ferry fare increase approved by ExCo

The Governor in Council today (Tuesday) approved a fare increase of 7.52 per cent for the "Star" Ferry Company Limited (SF) to take effect on 1 June 1997.

SF last revised its fares in March 1996. With rising operating costs, the company is expected to incur losses in 1997 and 1998 if fares remained unchanged.

In approving the fare increase, the Governor in Council took a number of factors into account, including the financial position of Star Ferry, its standard of service and public affordability.

The impact of the fare increase on inflation would be negligible. The approved rate of increase is below the forecast inflation rate between SF's last fare increase and June 1997 when the new fares are to take effect.

Details of the fare increase are as follows -

Services

Range of % increase

Increase in money termS

Edinburgh Place - Kowloon Point

6.64%

10 to 20 cents

Edinburgh Place - Hung Hom

8.46%

10 to 20 cents

10.01%

10 to 20 cents

Wan Chai - Kowloon Point

The approved rate of increase was considered necessary to offset rising operating costs, particularly on refurbishment of its vessels. In overall terms, about 99% of the passengers would have to pay no more than 20 cents more per trip.

End

HYF fare increase approved by ExCo

The Governor in Council today (Tuesday) approved a fare increase of 8.35 per cent for Hongkong & Yaumati Ferry Company (HYF) to take effect on 1 June 1997.

HYF last revised its fares in January 1996. With falling patronage and rising operating costs, HYF is expected to incur a sizable loss in 1996 and a substantial loss in 1997.

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