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permitted return (S. 28 (4)).
Dividends are payable from the "permitted return" retained by the grantee.
11.
In
Thus 'when a financial penalty is imposed it will be an operating cost taken into account in arriving at the net operating profit. But the penal effect may be mitigated by transfers from the Development Fund where the operating profit is insufficient to bear them. the ultimate analysis the penalty comes from funds due to shareholders, because at the end of the franchise the Development Fund is theirs but before then the effect upon them is marginal due to the Development Fund and the possible increase of fares.
Drivers Conditions etc.
12. The Governor in Council may under section 35 make regulations covering inter alia
"(i) the maximum number of hours during which a driver may be permitted to drive....... and (ii) the intervals for rest and refreshment of such drivers, in any period of 24 hourse".
but no regulations have been made, nor, under the present Ordinance could they lawfully impose weekly as opposed to 24-hour limits.
Routes and Fares:
13. Section 13 gives the Governor in Council the power. to determine the scale of fares upon any specified route, which CMB may not then exceed. By section 16 the Commissioner can specify the frequency of services.
14. The Schedule of Routes (CMB) Order specifies routes in two categories, exclusive and non-exclusive. Included in the latter are certain Cross-Harbour routes. After consultation of CMB by the Commissioner, section 14 permits the Governor in Council by notice in writing giving 3 months notice to CMB to
"alter a specified route......whether by way of extending or curtailing or otherwise varying the route".
G.S. 166
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