CONFIDENTIAL #Z
For Information
ANNEX B to XCC(80)4
NOTE BY THE ATTORNEY GENERAL
FOR EXECUTIVE COUNCIL
XCCI(79)16
This paper deals only with the position of CMB, because the Commissioner for Transport advises that KMB is likely to reach acceptable standards under the present management, and also that amalgamation of the two companies would not be advantageous. The principles set out here-
after are however generally applicable also to KMB.
Power to roll-forward' the franchise
2.
The public Omnibus Services Ordinance (cap. 230) section 4 provides that, with immaterial exceptions such services shall be operated only under a franchise granted "under this Ordinance or another enactment". Pursuant thereto the Governor in Council granted to CMB a 10-year franchise expiring on 30th August 1985; this was extended for 2 years to 1987 in June 1968 under S. 6(3) which provides that where the Governor in Council considers it appropriate this may be done provided that:
3.
".... the Commissioner is satisfied that since the grant of the franchise the grantee has maintained a proper and efficient public omnibus service".
Does "since" mean "ever since" or "at any time since"? Section 12 obliges the grantee to operate a proper and efficient service "at all times", This, together with the unreality of any other construction, makes me conclude that "ever since" is the correct meaning. Section 12(2) provides that the grantee shall not be treated as maintaining a proper and efficient service unless it complies with all the provisions of the Ordinance and franchise. Section 19 obliges the grantee to provide vehicle maintenance facilities "such as the Commissioner considers necessary". He advises they have not done so, and hence they are in breach of section 19, apart altogether from the present troubles.
4. It follows that, unless the Ordinance is amended, the present franchise cannot legally be extended even if CMB were now to start maintaining a proper and efficient service.
G.S. 166
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