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WEDNESDAY, JULY 17, 1974.
NEW LEGISLATION WILL ENSURE BUS COMPANIES COMPLY
WITH TERMS OF NEW FRANCHISES
ADEQUATE SANCTIONS TO REQUIRE THE TWO BUS COMPANIES TO COMPLY FULLY WITH THE TERMS OF THEIR NEW FRANCHISES WILL BE PROVIDED IN LEGISLATION NOW BEING DRAFTED.
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, GAVE THIS ASSURANCE TODAY WHEN REPLYING TO SEVERAL QUESTIONS RAISED IN THE LEGISLATIVE COUNCIL BY THE HON. LO TAK-SHING.
BOTH KOWLOON MOTOR BUS COMPANY AND THE CHINA MOTOR BUS COMPANY HAVE BEEN INFORMED THAT THEIR PRESENT FRANCHISES, WHICH EXPIRE ON FEBRUARY 14 NEXT YEAR, WILL NOT BE RENEWED ON THE PRESENT TERMS, AND NEGOTIATIONS ARE NOW PROCEEDING ON THE NEW TERMS AND CONDITIONS.
THESE WILL INCLUDE PROVISIONS FOR THE APPOINTMENT OF TWO SENIOR GOVERNMENT OFFICIALS TO THE BOARDS OF DIRECTORS OF BOTH COMPANIES. THE INTENTION OF THIS, MR. HADDON-CAVE EXPLAINED, IS TO SEEK TO INFLUENCE, FOR THE BENEFIT OF THE PUBLIC, THE MANNER IN WHICH THE COMPANIES RUN THEIR AFFAIRS.
THE FINANCIAL SECRETARY EXPLAINED THAT THE GOVERNMENT DID NOT CONSIDER IT APPROPRIATE TO APPOINT DIRECTORS TO THE BOARDS OF THE BUS COMPANIES WITHOUT ACQUIRING SOME PARTICIPATION IN THEIR EQUITY. +SUCH PARTICIPATION SHOULD ENABLE A REAL IMPROVEMENT IN CO-OPERATION BETWEEN THE GOVERNMENT AND THE COMPANIES TO BE ACHIEVED AND PROVIDE AN OPPORTUNITY FOR WAYS TO BE SOUGHT IN WHICH THE GOVERNMENT CAN ASSIST THE COMPANIES
IN THEIR OPERATIONS FOR THE BENEFIT OF THE PUBLIC.+
HE FELT THAT THIS WOULD BE MORE LIKELY TO BE ACHIEVED BY THE GOVERNMENT TAKING AN EQUITY POSITION AND THEREBY UNDERLINING ITS INVOLVEMENT IN THE AFFAIRS OF EACH COMPANY.
AN ACQUISITION OF UP TO 10 PER CENT IN THE EQUITY OF EACH COMPANY, HE ADDED, WOULD SUFFICE FOR THIS PURPOSE.
MR. HADDON-CAVE WAS CONFIDENT THAT THE NEGOTIATIONS WITH THE BUS COMPANIES REGARDING THE TERMS AND CONDITIONS OF THEIR NEW FRANCHISES WOULD BE CONCLUDED SUCCESSFULLY, AND HE SAW NO REASON TO THE CONTRARY.
+ INDEED IT WOULD BE FOOLISH FOR THE TWO COMPANIES NOT TO NEGOTIATE SERIOUSLY TO THIS END AND THE GOVERNMENT HAS NO REASON TO BELIEVE THEY ARE NOT DOING SO, HE SAID. "
HOWEVER, HE ASSURED COUNCIL THAT IN THE UNLIKELY EVENT OF THE NEGOTIATIONS FALLING THROUGH THE GOVERNMENT HAS ADEQUATE ALTERNATIVE PLANS AVAILABLE FOR ENSURING THE CONTINUED OPERATION OF BUS SERVICES IN HONG KONG AFTER THE EXPIRY OF THE PRESENT FRANCHISES.+
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