G.S. 166
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7. It should be noted that unless fresh legislative sanction is given:
(a) The Government will be at the mercy of CMB
(b)
at the end of 12 months because the Commissioner advises that it would take longer than this for any fresh operator to build up a fleet and other facilities sufficiently;
and
there is no power in the present Ordinance to require CMB at any stage to sell or lease any of its property to Government or its nominee.
Financial Penalties
3..
Section 22 provides that the Governor in Council may by notice in writing require the payment of a penalty (not exceeding $10,000 for the first occasion, $20,000 for the second, $50,000 for any subsequent occasion) upon failure by CMB to comply with the Ordinance or its franchise or any lawful directions or requirements thereunder.
But no penalty can be imposed unless the Commissioner is satisfied CMB have had a reasonable opportunity of complying, and an opportunity is given of showing cause why it
should not be imposed.
9. Thus breach of the duty under section 12(1)
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"at all times during the franchise period (to).. ...maintain to the satisfaction of the Commissioner a proper and efficient public omnibus. service"
can be visited with financial penalties after due process. Such penalties could be repetitive but could not exceed $50,000 on each occasion they were imposed by the Governor in Council.
Profit Control Scheme
10.
Where there is a net operating profit in any accounting year, CMB may retain an amount (known as the "permitted return") not exceeding 15% of the average net fixed assets. Any excess over the permitted return is required to be added to the "Development Fund" whose uses are (1) to assist in the acquisition of fixed assets, which include buses (s. 27(1)); or (ii) to make up any shortfall in the net operating profit so as to permit the payment of the
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