WEDNESDAY, FEBRUARY 5, 1975
A
REFERRING TO A SUGGESTION THAT ANY INCREASED CONTRIBUTION SHOULD BE DEFERRED UNTIL THE COMMISSION OF INQUIRY HAS REPORTED, THE FINANCIAL SECRETARY SAID THAT THIS WAS JUST NOT POSSIBLE.
+EVEN WITH THE INCREASES IN RENTALS AND IN OTHER CHARGES NOW PROPOSED ON AN INTERIM BASIS, TOGETHER WITH THE FOREGOING OF DIVIDENDS AND THE WAIVER OF ROYALTY, THE COMPANY IS EXPECTED TO FACE A CASH SHORTFALL IN 1975 OF ALMOST $90 MILLION, WHICH WILL HAVE TO BE MET BY THE COMPANY'S BANKERS AND THE COMPANY'S DEBT LIABILITIES ARE ALREADY VERY SUBSTANTIAL INDEED.
+SIMPLY TO REQUIRE SHAREHOLDERS TO FOREGO DIVIDEND PAYMENTS AND FOR THIS COUNCIL TO WAIVE ROYALTY PAYMENTS FOR TWO YEARS, WOULD ONLY REDUCE THE CASH SHORTFALL IN 1975 TO $190 MILLION WHICH, GIVEN THE DEBT BURDEN ALREADY ASSUMED BY THE COMPANY, WOULD BE BEYOND THE LIMITS OF BANKING PRUDENCE TO FINANCE, PARTICULARLY HAVING REGARD TO THE COMPANY'S OVERALL DEBT LIABILITIES.+
MR. HADDON-CAVE ADDED THAT AN INCREASE IN CHARGES NOW WAS UNAVOIDABLE.
HE EMPHASISED THAT THERE WERE A NUMBER OF INTERESTED PARTIES INVOLVED WHO HAD TO MAKE SOME CONTRIBUTION TO THE INTERIM MEASURES UNTIL A DEFINITIVE, LONGER TERM SOLUTION HAD BEEN DEVISED BY THE COMMISSION OF INQUIRY.
THESE WERE THE COMPANY, THE SHAREHOLDERS, THE COMPANY'S BANKERS, THE ADVISORY COMMITTEE, THE GOVERNMENT AND THE COMPANY'S EXISTING AND NEW SUBSCRIBERS.
+AND I SHOULD PERHAPS ADD TO THIS LIST, THE PUBLIC AS A WHOLE, AS DISTINCT FROM THE SUBSCRIBERS. I SAY THIS BECAUSE I REALLY DO THINK THE PUBLIC MUST TRY TO UNDERSTAND THAT, IN AN ADMITTEDLY UNPALATABLE SITUATION, THE GOVERNMENT IS DOING ITS BEST TO ENSURE THE CONTINUANCE OF AN ESSENTIAL PUBLIC SERVICE FOR THE COMMUNITY AND, IN DOING SO, TO BE FAIR TO ALL CONCERNED,+ MR. HADDON-CAVE CONCLUDED.
LATER THE COUNCIL PASSED A BILL WHICH PROVIDES FOR THE ..APPOINTMENT OF A GOVERNMENT DIRECTOR TO THE BOARD OF THE TELEPHONE
COMPANY AND THE WAIVING OF ROYALTY PAYMENTS BY THE COMPANY FOR 1974 AND 1975.
THE FINANCIAL SECRETARY STRESSED THAT THE PRIMARY RESPONSIBILITY OF THE GOVERNMENT DIRECTOR WOULD PLAY A POT IN *FOSTERING THE EFFICIENT EMPLOYMENT OF RESOURCES AND TO MONITOR THE IMPLEMENTATION OF THOSE RECOMMENDATIONS OF THE COMMISSION OF INQUIRY WHICH MAY BE ACCEPTED BY THE GOVERNMENT.+
/HE ADDED THAT .....