CONFIDENTIAL

125

M(87) 11

(a) under section 37 of the

Waterworks

Ordinance

(Chapter 102), that subject

to the amendment decided at

(c) above, the Waterworks

(Amendment) Regulations 1987

at Annex D to the memorandum

should be made; and

(e) that before future increases

are sought, the concepts

behind the charges should be

examined with a view to

clarifying whether increases

in charges should be based

on inflation or on the need

to secure an adequate return

on ANFA.

(The Director of Water Supplies, Mr T.H. TOMLINSON,

the Deputy Secretary for Lands and Works, Mr A.P. ASPREY, the

Assistant Financial Secretary, Mr

Mr A.J. DEEPROSE, and Crown

Counsel, Mrs. Y.C. FUNG, attended before the Council for the

discussion of this item.)

CONFIDENTIAL

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