Cargo area fees 'lead to losses'

PUBLIC cargo working areas would be operating at an annual loss of $97 million after a reduced increase in entrance fees, the Government claimed yesterday.

In a paper to legislators, the Government said it had agreed to increase fees by only 10 per cent, instead of the proposed 45 per cent.

Surcharges, like the use of mobile cranes, also would be reduced.

A Legco sub-committee had earlier opposed the drastic increase proposed by the Government.

Members criticised the Government for wrongly including the land costs in calculating the entrance fee.

Legislators said the fee should instead be based only on the administrative and operating costs.