The Government plans a $3 cut in the embarkation fee for passengers using cross-boundary ferry terminals, from $18 to $15.

A review showed there was room for this 17% reduction, although it will cut Government revenue by $29.8 million a year.

Most of the cross-boundary ferry operators - who are responsible for paying the fee to the Government - have agreed to reduce their fares by $3.

The Government owns and operates the two cross-boundary ferry terminals in Hong Kong - the Macau Ferry Terminal in Sheung Wan and the China Ferry Terminal in Tsim Sha Tsui. Its policy is to charge fees for its utilities that are sufficient to recover their full costs.

In reviewing the passenger embarkation fee, it takes into account cost-recovery as well as factors such as the likely impact on inflation, public acceptance and affordabiity.

Amendment to be gazetted on October 7

Since the embarkation fee is prescribed under the Shipping & Port Control (Ferry Terminals) Regulations, a legislative amendmentis needed to revise it.

The Shipping & Port Control (Ferry Terminals) (Amendment) Regulation 2005 will be gazetted this Friday and tabled at the Legislative Council next Wednesday. The fee reduction is slated to be implemented in December.