機密
CONFIDENTIAL ##
XCC(75)6
Financial Provisions
6
14
There are three important features in the financial pro- visions of the bill, namely the Corporation's authorised capital, the Government's power to guarantee the Corporation's debts, and the recovery from the Corporation of expenditure incurred by the Govern- ment and the Provisional Authority. There is also the question of the arrangements for dealing with the Corporation's tax liabilities.
15
Initial capital structure. Clause 10 defines the initial capital structure of the Corporation. The authorised capital of $2,000 million is proposed by the Provisional Authority having regard -
(a) to the amount of the Government's equity
contribution, which is $800 million in cash; and
(b) to the provision of a reasonable margin to
cover equity issues in respect of grants of
land and to meet tax liabilities (see paragraph 18 below), etc.
The value of each share is of no practical significance at the present time; by the time the Corporation is ready to offer a part of its equity to the public the Ordinance will have to be amended.
16
Government Guarantee. The purpose of clause 12 is to enable the Governor in Council, as necessary, to authorise a guarantee in respect of the Corporation's debts. The provision in clause 12(2) that sums required for fulfilling a guarantee should fall as a charge to General Revenue is important to both the Corporation and potential lenders.
17
Reimbursements to the Government. Clause 17 provides for the Corporation to reimburse the Government, in an amount to be determined by the Financial Secretary and in such manner as he directs, in respect of certain expenditure incurred by the Government on the Railway. It will include expenditure on salaries and other adminis- trative overheads involved in planning the Railway, fees paid to the consulting engineers and various advisers, the salaries of staff being recruited for the Corporation, the cost of investigations, additional public works, the diversion of public utility apparatus, other works, and some of the compensation arising from claims in relation to land. It is envisaged that, as the initial debt is determined, the Corporation will draw down various sums from the Mass Transit Fund to reimburse the Government. It is expected that the whole of this reimbursed expenditure will be carried by the Corporation in its balance sheets
CONFIDENTIAL
機密