G.S. 166
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(a)
(b)
(c)
financial penalties, so as to make them more realistic, easier to apply, and to ensure that their imposition has a more immediate effect upon shareholders and/or directors;
the use and purchase of the assets on termination or expiry of the franchise;
the power to make regulations covering all conditions of work, especially of drivers;
(a) to permit roll-forward of the franchise once a satisfactory management structure and service is ensured.
22. The above amendments could legally be made without consent, without attracting legal compensation and without in law ending the present franchises, even though these would be consequentially affected by them. What action the present owners would take to embarrass Government if they did not consent is a different matter.
23. A legal danger exists unless the above steps are taken and the amendments to the Ordinance and the contract are drafted with great care. If CMB were to be deliberately obstructive or constitutionally inefficient in future, then it would be better to have seized the chance now to revoke the franchise whilst we have good grounds for so
doing; otherwise the danger is that they might manufacture
good cause" within the meaning of section 24 (e.g.
97
strikes by staff; delivery delays allegedly not their fault, etc.) which Government might be unable to disprove and which would prevent Governor in Council from revoking the franchise at the future date.
24.
The Government's present position would be much stronger were there already in existence an alternative carrier capable quickly of taking over the running of the CMB operation. It is for consideration whether or not it would be politic now, with an eye to the future, to take advantage of the legal possibility of establishing such a carrier by adopting some or all of the options outline in paragraph 17(e) above.
(The Secretary for the Environment, Mr. D. J. C. JONES, the Commissioner for Transport, Mr. A. T. ARMSTRONG-WRIGHT, and the Assistant to the Attorney General, Mr. E. R. ASTIN, will attend before the Council for this item.)
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