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Government strengths in negotiation
19.
The Commissioner of Transport advises that there are the following factors which could be used in negotiation with CMB:
(a)
the amount and timing of any fare increase;
(b)
the possible provision of land upon terms for use as depots etc.;
(c)
(a)
(e)
the
the threat of removal of routes, in particular the Cross-Harbour tunnel - problem is the absence of a suitable alternative operator ready no ̈ to take on the routes;
the threatened or actual introduction of a third carrier:
the possible imposition of financial penalties;
(£) the refusal (after amendment of the Ordinance)
to permit roll-forward of the franchise;
(g) the threat of removal of the franchise, with ancillary legislative changes to enable use/purchase of CMB's assets;
(h) the possible loss of face involved.
Recommendations
20.
So far as the steps which the Commissioner wishes to see taken are concerned, past history and the character of the controlling shareholders of CMB appear to me to make it essential to have available legally enforceable sanctions in the case of default. These should be obtained if possible in negotiation using the factors described in paragraph 19. Ideally the sanctions should be enshrined in an amended Ordinance, or, as second best, in a contract.
21.
It is clear that the Ordinance and franchise are not aptly drafted easily to secure the objective of an efficient service if the grantee does not co-operate. Accordingly, I advise they should be amended, preferably with the agreement of the two companies, in the following
areas:
G.S. 166
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