XN000022-1976-12-22 — Page 9

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WEDNESDAY, DECEMBER 22, 1976

FERRY FARES TO OUTLYING DISTRICTS TO GO UP

FROM JAN. 1 NEXT YEAR

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THE LEGISLATIVE COUNCIL TODAY APPROVED A MOTION TO INCREASE FARES FROM JANUARY 1 NEXT YEAR ON OUTLYING DISTRICT SERVICES OPERATED BY THE HONG KONG AND YAUMATI FERRY COMPANY.

FARES WILL BE INCREASED BY ABOUT A QUARTER FOR MOST EXISTING WEEKDAY SERVICES AND BY SOMETHING LIKE DOUBLE THESE INCREASES ON SUNDAYS AND PUBLIC HOLIDAYS, WITH THE EXCEPTION OF INTER-ISLAND SERVICES.

SECOND CLASS FARES ON THE TOLO HARBOUR SERVICE WILL BE ABOLISHED AND DE-LUXE CLASS FARES WILL BE INCREASED FROM $4 TO A MAXIMUM PERMITTED FARE OF $5.

WHERE FARES HAVE ALREADY BEEN INCREASED OVER THE LAST 12 MONTHS, PARTICULARLY ON THE HONG KONG/LAMMA ISLAND SERVICE, THERE WILL NOT BE ANY FURTHER INCREASES ON WEEKDAYS.

SPEAKING ON THE MOTION UNDER THE HONG KONG AND YAUMATI FERRY COMPANY (SERVICES) ORDINANCE HE MOVED TO EFFECT THESE INCREASES, THE SECRETARY FOR THE ENVIRONMENT, THE HON. DEREK JONES SAID VARIOUS STEPS WERE BEING CONSIDERED TO REMEDY THE FINANCIAL POSITION OF THE FERRY COMPANY, INCLUDING ACTIONS TO CUT COSTS AND OTHER ECONOMIES IN EXPENDITURE.

+BUT IT IS CLEAR THAT SOME FARE INCREASES WILL BE ABSOLUTELY NECESSARY IF ADEQUATE FERRY SERVICES ARE TO BE MAINTAINED, HE SAID.

HE SAID A DETAILED REVIEW OF THE WHOLE OF THE COMPANY'S OPERATION HAS SHOWN THAT ITS TWO VEHICULAR FERRY SERVICES CONTINUED TO OPERATE AT A PROF IT WHILE MOST OF ITS PASSENGER SERVICES WERE MAKING A LOSS.

OUTLYING SERVICES, IN CONTRAST TO THE HARBOUR SERVICES, HAD BEEN OPERATING FOR MANY YEARS AT LARGELY UNCHANGED AND RELATIVELY LOW FARES, AND GIVEN THE DECLINE IN THE VALUE OF MONEY, FARES ON THE OUTLYING SERVICES ARE MUCH LOWER IN TERMS OF REAL PURCHASING POWER THAN THEY WERE, SAY, TEN OR TWENTY YEARS AGO,+ MR. JONES SAID.

THE COMPANY HAS ITS PASSENGER LOAD INCREASED FROM 7 MILLION IN 1965 TO OVER 15 MILLION IN 1975 AND NOW CARRIES ABOUT 40,000 PASSENGERS ON AN AVERAGE SUNDAY OR PUBLIC HOLIDAY, COMPARED WITH A WEEKDAY AVERAGE OF SOME 18,000 PASSENGERS.

+ IT IS CONSIDERED TO BE ONLY FAIR THAT THE RECREATIONAL TRAFFIC SHOULD MAKE A GREATER CONTRIBUTION TO THE COST OF DEPRECIATION AND MAINTENANCE OF THESE VESSELS THAN HAS HITHERTO BEEN THE CASE, HE SAID.

/THE SECRETARY