CONFIDENTIAL ##
機密
C.S. 166
17
-
XCS(77)2
Development Fund balance should be added
to the Development Fund rather than paid out to consumers in the form of rebates (as happens under the existing Scheme of Control).
(g) Dividend restrictions (paragraphs 17(g), 41 and 42)
The proposal to lift the restrictions on the payment of dividends by CLP should be resisted. Should CLP dividends fall out of step with those of similar undertakings in the future, the restrictions would then be reviewed.
(h) Fuel escalation charge (paragraphs 17(h) and 43)
(i)
The proposal to recast the present unrealistic base price should be accepted, but the level of the new base price should be fixed having regard to the requirement for efficiency savings to be passed on to the consumer whatever the actual cost of fuel.
Duration of Scheme of Control (paragraphs 17(i) and 44)
The proposal for a fifteen year Scheme of Control should be accepted but, in lace of the proposed option to renegotiate after seven years, the new Scheme of Control should provide for bi- annual reviews on some of the more detailed points involved (for example, accounting policies and dividend restrictions).
46
If CLP are able to produce convincing arguments for deviating significantly from this brief, the advice of honourable Members will be sought on the specific points involved. Provided that the final agreement does not differ materially from this negotiating brief, it will be put to honourable Members for information only.
(g) Hongkong Electric Company
47
The introduction of the fuel surcharge by both power companies in the 1950s led to severe public criticism and the appointment of a Commission of Inquiry in July 1959 to advise "on the form and extent of control which Government should impose" on these companies. The Commission recommended inter alia that both companies be com- pulsorily acquired and handed over to a statutory, but independent authority. The companies made alternative proposals in 1960, but these were rejected by the Government in January 1961 as failing to meet the Commission's criticisms.
CONFIDENTIAL
機密