XN000022-1972-06-07 — Page 23

Wednesday, June 7, 1972,

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The Financial Secretary said the company also intended to

abclish a non-statutory concession providing for all students over

the age of twelve to travel for ten cents. However, in line with similar

concessions already introduced for students travelling on the buses,

it was proposed to continue this concession and for the second half

of the fare to be made up from public funds. The Finance Committee

would be invited to approve the necessary funds in the near future.

With elimination of the royalty, the Tramways' income will

be $22 million in 1972, $25.4 million in 1973 and $25.4 million in 1974.

This will enable the company to make a return on its assets employed

of somewhat over eleven per cent in 1972, and of about 16 per cent

in 1973 and 12% per cent in 1974.

"These figures, taken one with another, are I believe modest.

They certainly do not indicate any tremendous increase in profitability

for the Tramways as a result of the proposed changes, which are

appropriate to the situation and no more. I hope that they will be

understood and accepted as such by the public at large," Mr. Haddon-Cave

said.

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