have been reached. The company to whom a franchise to operate new routes would be granted would have to prove that it had a capability of further expansion, first to operate over existing CMB routes where services were poor and then eventually to take over all of CMB's present routes, should the need arise. The Secretary for the Environ- ment considers it extremely likely that, if a new company were franchised, even though it operated only new routes, CMB would become intransigent. This means that, once the Government decided to enfranchise a new operator, there would almost certainly be no turning back.
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Proposed Amendments to the Public Omnibus Services Ordinance
Drafting has commenced to amend the Public Omnibus Services Ordinance in accordance, inter alia, with paragraph 1(d) and (i) above. In particular, the amendments will:
(a)
(b)
(c)
(d)
흐
(e)
clarify the powers, under section 6, to roll forward the franchise;
permit, under section 16, the variation, withdrawal or curtailment of routes;
provide greater powers, under section 17, over a franchised company's bus procurement
programme;
increase the financial penalties, under section 22, and clarify their applicability;
provide, in section 24, a power to revoke the right to operate on any specific route;
(f)
provide for compulsory purchase, under section 25, of a company's assets;
(g)
amend the definition of "operating receipts" in section 26, to ensure that realised currency exchange profits and proceeds from sale of tyres, etc., come within the profit control scheme; and
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(h)
amend section 29 to ensure that financial penalties are deducted from the permitted return.
Council's advice will be sought separately on legislation
to effect these amendments which would ensure that the Public Omnibus
CONFIDENTIAL