XN000022-1974-07-17 — Page 19

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WEDNESDAY, JULY 17, 1974.

LEGCO APPROVES YAUMATI FERRY'S FARE REVISION APPLICATION

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A MOTION PROVIDING FOR A FARE REVISION OF THE HONG KONG AND YAUMATI FERRY COMPANY'S FERRY SERVICES FOR THE FIRST TIME IN 29 YEARS WAS ADOPTED BY THE LEGISLATIVE COUNCIL TODAY.

AT THE SAME TIME, THE COMPANY'S ROYALTY PAYMENTS FOR THE YEAR ENDING DECEMBER 31, 1974 HAVE BEEN WAIVED TOGETHER WITH THE $20,000 MONTHLY FEES FOR THE EXCLUSIVE RIGHT OF OPERATING A PASSENGER FERRY SERVICE BETWEEN NORTH POINT AND HUNG HOM.

IN MOVING THE MOTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, EXPLAINED THAT THE PROPOSALS WERE MADE BECAUSE THE COMPANY'S FINANCIAL POSITION WAS ESTIMATED TO DETERIORATE TO A POINT WHICH NECESSITATED REMEDIAL ACTION NOW.

FORECASTS SHOWED, HE SAID, THAT THE COMPANY WOULD FACE A $2 MILLION DEFICIT IN 1974 EVEN IF THE ROYALTY WAS WAIVED AND THE PRESENT FARES INCREASED. THE FORECAST FOR 1975 WAS FOR A DEFICIT OF $3.6 MILLION ON THE SAME BASIS.

+THE DEFICIT SITUATION THAT IS FORECAST CANNOT BE ALLOWED TO OCCUR AS THE COMPANY MUST CONTINUE TO OPERATE ON A VIABLE BASIS SO THAT IT MAY CONTINUE TO MAKE ITS NECESSARY CONTRIBUTION TOWARDS HONG KONG'S TRANSPORT NEEDS,+ SAID MR. HADDON-CAVE.

THE MAJOR CHANGES IN THE FARE STRUCTURE PROVIDE FOR AN INCREASE IN ADULT FIRST AND ONE CLASS PASSENGER FARES FROM 20 CENTS TO 30 CENTS, WITH CHILDREN UNDER 16 YEARS FROM 10 CENTS TO 20 CENTS.

SECOND CLASS PASSENGER FARES FOR ADULTS OR CHILDREN UNDER 16 ARE TO INCREASE FROM 10 CENTS TO 20 CENTS.

WHERE MONTHLY TICKETS ARE AVAILABLE, THE PRICE IS TO INCREASE FROM $8 TO $12 FOR ADULTS AND FOR CHILDREN UNDER 16 FROM $4 TO $6.

ACCOMPANIED CHILDREN UNDER THREE YEARS OF AGE WILL CONTINUE TO TRAVEL FREE. ALL FREIGHT IS TO BE CHARGED AT A RATE OF $1.50 PER PICUL OR FOUR CUBIC FEET, WHILE VEHICLE RATES ARE SUBJECT NAINLY TO SMALLER PERCENTAGE INCREASES THAN PASSENGERS AND FREIGHT.

THE NEW FARES WILL COME INTO EFFECT NEXT MONDAY (JULY 22).

THE FINANCIAL SECRETARY SAID THAT WITH THE FARE

INCREASES AND THE WAIVING OF ROYALTY AND MONTHLY FEES, IT WAS FORECAST THAT THE COMPANY WOULD OBTAIN A RETURN ON NET ASSETS OF SOME 7 PER CENT IN 1974, 11.5 PER CENT IN 1975 AND 9 PER CENT IN 1976.

/+THESE FORECAST