- 17.
A provision that the lensees must properly maintain their piers should also be inserted.
It is, of course, not impossible that, in the course of time, conditions might change considerably and private enterprise fail to function satisfactorily, in which event another problem would arise, the solution of which might involve some form of "operating" by the Harbour Trust, but that is looking at a remote contingency. I should not now give the Trust power or authority to "operate". If the necessity should ever arise, the Trust would have to seek the necessary power or authority from the Government.
Before leaving the question of the policy with regard to the leasing of piers and of allowing private enterprise to do the operating, I would like to mention that it has been put to me that there is legislation in various parts of the world, such as Australia, whereby the Authorities oan prevent new enterprises being formed for putting steamers on runs when the particular run is sufficiently well-served, thereby preventing suicidal competition and waste, etc. This aspect of the matter has not been lost sight of by me.
I can easily imagine a similar case arising apert from any special steamer service. It is quite conceivable, for example, that a rival concern, nore or less financially sound, might be formed to compete with, say, the Hong Kong & Kowloon Wharf and Godown Company. The new concern would require a wharf or wharves and would have to approach the Harbour Trust for the necessary lease, but the Trust would be right in refusing to grant any lease for such a purpose unless it were proved that the existing facilities were inadequate. The same thing would apply if a pier were required for an unnecessary steamer service. Competition may be good in certain circumstances, but it is the generally accepted doctrine now, that unbridled or unnecessary competition is bad and wasteful. In stating this, of course,
I need hardly say that I hold no brief for any of the Hong Kong existing concerns, but, in the best interests of the Port, they would be entitled to protection if such a state of affairs as I have mentioned, arose.
(k) A statement of the receipts and expenditure of the Trust to
be published annually.
NOTE.
T
It is very desirable that this should be done, as until it is done, it is hardly possible to deal adequately with the question of finance.
(1) During the experimental period of three years, any surplus of
revenue over receipts to be paid over to the Government and any shortage to be recouped by the Government.
NOTE. - I imagine that there should be a surplus.
I suggest this provision for the experimental period of three years, as it would, in effect, practically leave finances as they are.
Should the accounts show a surplus, it would become a matter for consideration. In most of the Ports of the United Kingdom the Harbours were, in the early days, owned by the respective municipalities and the harbour revenues were received by the runicipal Treasury and lost in the expendi- ture on municipal services, with the result that complaints were made that the shipping using the ports paid far too much compared with the services and accommodation it received, in other words the shipping was subsidizing the town. Public Trust system altered this. How far this analogy applies at Hong Kong will be best known by the Government.
The