CONFIDENTIAL 機密
XCC(75)6
2
of the public transport system of Hong Kong" in clause 3(2)(a) are important: because the Railway will be at the core of Hong Kong's public transport system in the 1980's the Corporation must take cognizance of the Government's public transport policies. The practical significance of the words in this sub-clause can be seen by reference to clause 13(1) of the bill, which requires the Corporation to "conduct its business according to prudent commercial principles". If the Corpora- tion is not also to have regard to the requirements Hong Kong's public transport system, clause 13(1) might well be interpreted as meaning that the Corporation would be free to maximise its return on investments, so that if it could obtain more revenue by charging very high fares and carrying a smaller number of passengers, it would be free to do so. Clearly, the main object of the Corporation must be to ensure that the Railway will be operated in such a way as to serve Hong Kong's public transport requirements, as determined by the Government. The re- quirement in clause 13(1) of the bill means that the Corporation should seek to earn enough revenue to service its debts and to meet operating and other costs generally (and, eventually, to make a reasonable amount of profit).
4
The constitution of the Corporation is set out in clauses 4 and 5 of the bill. Clause 4 provides for a Board to be the governing body of the Corporation. The Board will consist of:
(a)
a Chairman, who will also be the Corporation's chief executive;
(b)
the Managing Director of the Corporation (who will, in effect, be the deputy chief executive);
(c)
between four and eight other members appointed by the Governor.
It is envisaged that the members of the Board will include both public officers and unofficials drawn from the private sector. As regards public officers, clause 4(5) provides for the necessary degree of flexi- bility required by changes in appointments, leave and posting. Unofficial members, however, will be appointed for a term not exceeding three years but may be re-appointed.
5
Clause 5 sets out the general procedure by which the Board will conduct its business, and clause 9 relates to the Corporation's documents and their mode of execution; both clauses are fairly standard provisions in legislation relating to public corporations.
CONFIDENTIAL #3