(e)
(f)
(g)
the same argument would apply to other levels of staff where competition with the private sector will otherwise pose problems;
the need to adhere to Government's financial and management procedures would be obviated, and the funding of any future development would no longer need to be via the Public Works Programme, thus facilitating timing and economies;
an independent body would probably reduce the risk of conflict between the public and the Government on railway matters including the fixing of fares.
Initial Implementation Problem
8
The above advantages outweigh the initial implementation problems that would be inevitable with hiving off. Indeed, once the problems of implementation have been overcome, there appear to be no major disadvantages to the hiving off. The initial problems fall into two major categories:-
(a)
(b)
Structural
The foremost consideration will be the corporate structure that is best suited to a $4 billion railway and to the Hong Kong situation. It is important that the control and financial structures adopted are carefully considered as depending upon them are a number of important related considerations such as returns on capital, land development and fare policy; and
Operational
Serval operational problems would arise:-
(i) practical problems of organisation in the transitional
period;
(ii) a range of problems concerning staff, their management,
morale and conditions of service;
(iii) allocation and vesting of railway land and assets; and
(iv) timing.
None of the above would seem to create insuperable difficulties which would stand in the way of change although transitional arrangements would have to be very carefully worked out.
CONFIDENTIAL ##
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