TNAG-0859-FCO40-1069-Legislation-for-ferry-services-in-Hong-Kong-1979 — Page 84

G.S. 84

RESTRICTED

XCR (79)27

4

- 2

Users of these services have no alternative means of transport. Since the population in the areas served is unlikely to increase in the immediate future and since development is not expected to take place before 1982-83, passenger volumes up to 1981 are predicted to continue at approximately the present levels.

5

During the period of the present licence the Hop Shing Kung Company has provided a reliable service. When the services were put out to tender in 1975 the Company submitted the only satisfactory application. Under various arrangements, the Company has been operating ferry services for a total of almost seven years in this area and it is most unlikely that an alternative operator could found.

Fare Revision

6

The Company has also applied for a fare revision, which, it claims, is justified because of its generally poor financial position. The Company's existing and proposed single fares are shown below:

Existing

Proposed

Shau Kei Wan/Rennie's Mill

50¢

80¢

Rennie's Mill/Hang Hau

30¢

50¢

Shau Kei Wan/Hang Hau

80¢

$1.00

7

In support of its application the Company has submitted overall statements of accounts for the years 1975-1977. These cover the services discussed in this paper and also the Company's other services between Peng Chau and Hei Ling Chau. The accounts are summarised below:

Year Ending

31. 12. 1975

31. 12. 1976

31. 12. 1977

Income Fare

536,086

592, 320

666, 206

Motorboat hire Rental etc

14, 104

15, 490

550, 190

607, 810

81, 638 747,844

Expenditure

502, 976

697, 229

743,527

Net profit/(loss) before tax

47, 214

(89,419)

4,317

RESTRICTED