XN000022-1980-03-12 — Page 3

WEDNESDAY, MARCH 12, 1980

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LEGCO APPROVES STAR FERRY FARE RISE

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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) APPROVED FARE RISE ON THE STAR FERRY COMPANY'S EDINBURGH PLACE TO TSIM SHA TSUI SERVICE WITH EFFECT FROM APRIL 1.

THE FIRST CLASS FARES WILL BE RAISED FROM 30 CENTS TO 50 CENTS FOR ADULTS AND FROM 20 CENTS TO 30 CENTS FOR CHILDREN- AND THE SECOND CLASS FARES FOR BOTH ADULTS AND CHILDREN FROM 20 CENTS TO 30 CENTS.

THE CHARGE FOR MONTHLY TICKETS WILL ALSO RISE FROM $12 TO $22.50 FOR ADULTS, AND FROM $6 TO $11.30 FOR CHILDREN.

MOVING A MOTION TO AMEND A SCHEDULE IN THE STAR+ FERRY COMPANY (SERVICES) ORDINANCE, THE SECRETARY FOR THE ENVIRONMENT, THE HON DEREK JONES SAID THE MAIN REASON FOR THESE FARE INCREASES WAS TO OFFSET A LOSS OF REVENUE EXPECTED BECAUSE OF A REDUCTION IN THE NUMBER OF PASSENGERS USING THE FERRY FOLLOWING THE OPENING OF THE CROSS HARBOUR SECTION OF THE MASS TRANSIT RAILWAY.

+ALTHOUGH IT IS STILL TOO SOON TO PREDICT PASSENGER FIGURES WITH CERTAINTY SO SOON AFTER THE OPENING OF THE MTR, EXPERIENCE SO FAR WOULD SEEM TO SHOW THAT THE COMPANY'S PREDICTION OF A 30 PER CENT LOSS OF PASSENGERS IS NOT UNREASONABLE, MR JONES SAID.

+A DROP IN PASSENGERS OF THIS MAGNITUDE WOULD VIRTUALLY WIPE OUT THE PROFITABILITY OF THE COMPANY IN 1980 AND IT IS CLEAR THAT AN INCREASE IN FARES IS REQUIRED TO OFFSET THIS,+ HE ADDED.

MR JONES POINTED OUT THAT IT WAS PREDICTED THAT THE INCREASES IN FARES WOULD GENERATE A PROFIT IN 1980 OF ABOUT $3 MILLION, WHICH WAS SIMILAR TO THE PROFITS MADE BY THE COMPANY SINCE 1977 AND WAS REASONABLE IN ALL THE CIRCUMSTANCES.

MR JONES ADDED THAT SINCE THE OPENING OF THE CROSS HARBOUR SECTION OF THE MTR, THE WAITING TIME FOR THE STAR FERRY AT PEAK PERIODS HAD BEEN REDUCED FROM AN AVERAGE OF MORE THAN 12 MINUTES TO AN AVERAGE OF ABOUT THREE MINUTES.

+THIS, IN EFFECT, MEANS A BETTER SERVICE FOR THOSE USING THE FERRY AND IT SHOULD GO SOME WAY TO COMPENSATE PASSENGERS FOR THE INCREASE IN FARES I AM NOW PROPOSING,+ MR JONES SAID.

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FINANCIAL SECRETARY TO VISIT CHINA

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A GOVERNMENT SPOKESMAN TODAY (WEDNESDAY) CONFIRMED THAT THE FINANCIAL SECRETARY, SIR PHILIP HADDON-CAVE, WILL VISIT CHINA IN EARLY MAY AT THE INVITATION OF MR X1 YESHENG, DEPARTMENTAL DIRECTOR OF THE MINISTRY OF FOREIGN TRADE.

HE WILL BE ACCOMPANIED BY LADY HADDON-CAVE AND THE POLITICAL ADVISOR, DR DAVID WILSON,

DETAILED ARRANGEMENTS FOR THE VISIT ARE STILL BEING MADE.

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