Wednesday, June 7, 1972
NO PAYMENT OF ROYALTY BY TRAMWAYS FOR 1972
Resolution Approved By Legislative Council
The Legislative Council this afternoon approved a resolution
to abolish the payment of royalty by the Hong Kong Tramways Limited
for the calendar year commencing on January 1, 1972.
The rate of royalty prescribed in the Tramway Ordinance is
23% per cent of net profits.
Moving the resolution, the Financial Secretary, Mr. C.P. Haddon-
Cave said that after the elimination of royalty, the return on assets
employed in 1971 was about 12.7 per cent.
But on the same basis, and with royalty eliminated, the forecast
returns for 1972 and 1973 were expected to fall to about 7.1 per cent
and 2.7 per cent respectively.
He said the company's current financial position had been
deteriorating because of rising operating costs and the loss of passengers
due to competition from public light buses.
In 1970, the trams carried 158.5 million passengers, and in
1971 they carried some two million leɛs.
"But present indications are that the numbers are still falling,
due not only to competition from buses and public light buses operating
along the same routes, but also to the slowing down of the tram service as a result of traffic congestion at peak hours," Mr. Haddon-Cave said.
"At present
No comments yet.
Private notes are available after approval.