The following is issued on behalf of the Transport Advisory Committee:
 
     The Transport Advisory Committee (TAC) today (November 29) supported the Government's proposal for enhancing the Special Helping Measures (SHM) provision for the six major outlying island ferry routes (note 1) and was briefed on "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" (HK 2030+).
 
     The TAC was briefed at the meeting today on the arrangements for extending the licence of the six major outlying island ferry routes for three years, including the enhanced SHM for the next licence period (from mid-2017 to mid-2020).
 
     "The Committee supports the Government's proposal of continuing the SHM and adjusting upward the cap of subsidy amount to $410 million, with a view to maintaining the financial viability of the ferry services and alleviating the burden of fare increase on passengers. The Committee also welcomes the Government's proposed addition of a new item, to reimburse half of the depreciation expense associated with the introduction of new vessels or improvement of services, facilities or equipment," the TAC Chairman, Mr Larry Kwok said.
 
     Members noted that the Government intends to approve an average fare increase rate of around 4 per cent for the six routes, which will take effect on commencement of the new licence period. The profit-sharing mechanism established during the mid-term review of the current licence period (mid-2014 to mid-2017) will be applicable to the next licence period, where operators will share "windfall profit" with passengers on a 50:50 basis through offering fare concessions. 
 
     In addition, Members also understood that it will take time to see what the actual effectiveness of the new arrangements will be in enhancing the ferry services and maintaining the long-term financial viability of the ferry services. The Government will look into this in the next mid-term review (in the first half of 2019). At that time, the Government will review whether the currently proposed SHM would be the most desirable long-term operation model for maintaining the service quality and financial viability of ferry services. The Government will also decide in one go whether and how the long-term operation model to be selected at that time should be applicable to the eight other outlying island ferry routes (note 2) other than the six major outlying island ferry routes. The Government will also take the opportunity of the next mid-term review to explore extending the effective period of a licence through legislative amendments.
 
     The TAC was also briefed on "HK 2030+", a study led by the Development Bureau and the Planning Department for updating the territorial development strategy to guide planning, land and infrastructure development beyond 2030. 
 
     Mr Kwok said, "Noting the key findings and recommendations of the Study, Members generally support the proposed three building blocks (namely Planning for Liveable High-density City, Embracing New Economic Challenges and Opportunities, and Creating Capacity for Sustainable Growth), and the conceptual spatial framework.
 
     "In particular, Members welcome the proposed directions of reducing travel needs through better physical and function integration within the city, enhancing transport infrastructure capacity with railway continuing to be the backbone of public transport system, and fostering smart mobility. Members consider these proposed directions conducive to Hong Kong’s development of a sustainable transport system, creating a more liveable environment for the people of Hong Kong."
 
Note 1:
 
Routes operated by the New World First Ferry Services Limited:
(1) Central – Cheung Chau;
(2) Inter-islands between Peng Chau, Mui Wo, Chi Ma Wan and Cheung Chau; and
(3) Central – Mui Wo.

Routes operated by the Hong Kong & Kowloon Ferry Holdings Limited's three subsidiaries:
(1) Central – Peng Chau;
(2) Central – Yung Shue Wan; and
(3) Central – Sok Kwu Wan.
 
Note 2:
 
The eight other outlying island ferry routes include:
(1) Aberdeen – Cheung Chau;
(2) Aberdeen – Yung Shue Wan via Pak Kok Tsuen;
(3) Aberdeen – Sok Kwu Wan via Mo Tat;
(4) Tuen Mun – Tung Chung – Sha Lo Wan – Tai O;
(5) Discovery Bay – Mui Wo;
(6) Discovery Bay – Central;
(7) Ma Wan – Central; and
(8) Ma Wan – Tsuen Wan.

Ends/Tuesday, November 29, 2016
Issued at HKT 13:04

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