XN000022-1977-06-01 — Page 12

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WEDNESDAY, JUNE 1, 1977

+

HONG KONG YAUMATI FERRY FARE INCREASE

APPROVED

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THE LEGISLATIVE COUNCIL HAS APPROVED AN INCREASE ON THE ADULT FARE OF MOST OF THE HONG KONG YAUMATI FERRY COMPANY'S CROSS-HARBOUR PASSENGER FERRY SERVICES FROM 30 CENTS TO 40 CENTS FROM JULY 1, 1977.

THE PRICE OF A MONTHLY TICKET WILL BE CORRESPOND INGLY INCREASED FROM $12 TO $16 WHILE CHILDREN'S AND STUDENTS' FARES WILL REMAIN UNCHANGED AT 20 CENTS AND $6 FOR A MONTHLY TICKET.

THE SECRETARY FOR THE ENVIRONMENT, THE HON. DEREK JONES, WHEN MOVING THE FARE INCREASE THIS AFTERNOON, EXPLAINED THAT THIS WOULD BE THE THIRD ROUND OF MEASURES ADOPTED BECAUSE OF THE FERRY COMPANY'S FINANCIAL POSITION.

HE SAID THAT IN AUGUST LAST YEAR, THE COUNCIL HAD AGREED TO ABOLISH ROYALTY AND MONTHLY FEES CHARGED ON THE COMPANY AND TO INTRODUCE A ONE-CLASS FARE ON CROSS-HARBOUR PASSENGER SERVICES, AND LAST DECEMBER, CERTAIN INCREASES IN FARES WERE APPROVED ON OUTLYING DISTRICT SERVICES.

MR. JONES NOTED THAT THE COMPANY HAD ONLY A 2 PER CENT RETURN OF $2 MILLION ON ITS NET FIXED ASSETS OF SOME $100 MILLION EMPLOYED IN ITS FERRY OPERATIONS LAST YEAR.

+AND, EVEN THEN, ALL THIS PROFIT AND MORE CAME FROM THE VEHICULAR SERVICES. WHILE THE PASSENGER SERVICES AS A WHOLE MADE A LOSS, + HE SAID,

HE EXPECTED THAT THE 10 CENTS FARE INCREASE WOULD GIVE A MODEST PROFIT OF ABOUT $3.9 MILLION, OR ROUGHLY 4 PER CENT ON THE NET FIXED ASSETS EMPLOYED, IN 1977, ASSUMING THAT THE SMALL INCREASE WOULD ONLY DÉTER SOME 5 PER CENT OF PRESENT FERRY PASSENGERS.

+EVEN IN THESE CIRCUMSTANCES, HOWEVER, THE LARGER PART OF THE COMPANY'S PROF ITS WOULD CONTINUE TO COME FROM NON-FERRY OPERATIONS,+ MR. JONES POINTED OUT.

HE SAID THAT THE NUMBER OF PASSENGERS CARRIED ON THE COMPANY'S CROSS-HARBOUR FERRIES DECLINED BY A FURTHER 7 PER CENT LAST YEAR WITH THE RESULT THAT SIX OF THE ELEVEN FERRY ROUTES WHICH WERE TO BE AFFECTED BY THE FARE REVISION +DID NOT EVEN MAKE ENOUGH REVENUE IN 1976 TO COVER THE IR DIRECT OPERATING COSTS, LET ALONE MAKE ANY CONTRIBUTION TO THE DEPRECIATION OF THE IR VESSELS OR TO GENERAL OVERHEADS.+

/+IT IS