The Transport Advisory Committee is studying the Star Ferry Company's application for fare increases on two franchised routes - Central to Tsim Sha Tsui and Wan Chai to Tsim Sha Tsui.

Committee chairman Teresa Cheng said today recommendations will be submitted to the Government for consideration by the Chief Executive-in-Council.

The committee has considered the financial condition of the operator, forecasts of changes in operating cost, revenue and return, past performance, public acceptability of the proposed fares, and measures implemented to save costs and generate additional revenue.

"Taking into account all relevant factors we will make our recommendations to ensure the provision of quality ferry services can be sustained for the benefit of the community," Ms Cheng said.

Committee members were also briefed on the performance of franchised bus operators last year and noted their service and safety improvements.

"To meet future challenges we urge operators to further enhance their operational efficiency, service quality and competitiveness," Ms Cheng said.