Subsidies on cards for ferry operators

PUBLISHED : Saturday, 30 October, 2010, 12:00am
UPDATED : Saturday, 30 October, 2010, 12:00am

The government wants lawmakers to approve a fund of about HK$115 million to subsidise possible fare increases when contracts to run ferry routes on six outlying islands are renewed next year. On top of existing relief measures for operators, the government will reimburse vessel maintenance costs. In a paper to be discussed by lawmakers in a Finance Committee meeting on Friday, the Transport and Housing Bureau has identified two problems facing ferry operators to the islands - lack of growth in demand and highly volatile fuel costs.