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Karen Chan

FERRY commuters from Tuen Mun and Lamma Island are likely to face above-average increases in fares, it was revealed yesterday.

  Hongkong Ferry is to seek an average increase of 16 per cent this week, according to its president, Mr Peter Wong Man-kong.

  ''That is the average,'' he said. ''Some routes might see higher rises, such as Tuen Mun and Yung Shue Wan [on Lamma].''   Mr Wong did not give details as he said the proposal was being finalised, although he stressed that the demand for improvements in services on individual routes would affect the level of increases.

 The proposal met opposition from an Islands District Board member, who opposed any rise above 10 per cent.

  The Reverend James Leung Kwok-tung also said the company should not charge higher fares on Saturday and should allow concessions for the elderly.

  He said the company had promised before that services would improve after fare increases but the situation was still as bad.

  Hongkong Ferry has finished two weeks of consultations with district groups, and Mr Wong said the company was likely to apply for an average rise of 15 to 16 per cent, generating extra revenue of $60 million a year.

  Mr Wong said a formal recommendation would be submitted this week.

  He said it was hoped the new fares would come into effect in July. The company raised its fares by 14.3 per cent in July last year.

  Mr Wong said the increase would allow the company to catch up with inflation - which was higher in the ferry industry at 12 to 13 per cent - and improve services.

  The company had hinted earlier that a rise of up to 25 per cent would be justified to substantially upgrade its piers, recruit and train younger crew, computerise ticketing and acquire a new fleet.

  The proposal was vehemently opposed by concern groups, especially residents of outlying islands.

  Mr Wong yesterday maintained that the company had never proposed a rise of 25 per cent, although he agreed that an improvement in services would call for a six per cent rise above inflation, and new ferries would mean another eight per cent.

  Mr Wong also attacked government delays in approving plans to develop 900,000 square feet of commercial space on top of a new pier in Central. The project, he claimed, would boost the company's income and reduce the pressure on higher fares.

  Revenue from ferry operations and related businesses rose from $460 million in 1991 to $471 million last year, but profits dropped drastically from $50.4 million to $8 million.



Ferry fare rises to hit Tuen Mun and Lamma