TNAG-0859-FCO40-1069-Legislation-for-ferry-services-in-Hong-Kong-1979 — Page 46

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A

B

XCR (79)146

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The case for a renewal of the licence

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The opening of the Ap Lei Chau Bridge, and the Southern Approach Road leading to the new Ap Lei Chau (West) Estate in October this year will enable buses to serve this new estate. However, access for buses to the northern shore will not be available until the end of 1980. There will therefore continue to be a need for ferry services at least until this date, although a reduction of passenger demand and revenue is likely and the longer term prospects are uncertain,

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In view of the company's satisfactory performance

and the continuing need for the service, it is proposed that the licence granted to the Eastern Ferry Company be extended for a further period of 16 months, until 31st December 1980.

Proposed minor amendments to the renewed licence

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A copy of the draft licence is attached at Annex A. Slight amendments have been introduced to reflect changes which have been made to the Ferries Ordinance and Regulations since the original licence was issued; for example, the Commissioner for Transport, not the Chief Secretary, will grant the licence.

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The licence will be granted at an unchanged monthly rent of $22,800. This is considered reasonable as there has been little increase in passenger figures over the past two years. The fares, as listed at Annex B, will also remain unchanged despite increases in running costs. However, section 10 of the licence, which formerly permitted the release of the operator from his obligations if a bridge was built, has been revised to reflect Government's wish that the service should continue after the opening of the bridge, but at the same time providing for a reduction in the monthly rent if the Commissioner for Transport thinks this is necessary in the light of any reduction in passenger demand and revenue to the company once the bridge has opened.

The Transport Advisory Committee

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The Transport Advisory Committee has been consulted and supports this proposal.

G.S. 84

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