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FRIDAY, DECEMBER 3, 1982
THE BILL INCLUDES THE IMPORTANT PROVISIONS ENABLING THE GOVERNOR-IN-COUNCIL TO GIVE GENERAL AND SPECIFIC DIRECTIONS TO THE CORPORATION IN THE PUBLIC INTEREST. IF ANY DIRECTION REQUIRES THE CORPORATION TO ACT CONTRARY TO PRUDENT COMMERCIAL PRINCIPLES IT WILL BE ENTITLED TO REASONABLE COMPENSATION FROM THE GOVERNMENT.
THE FINANCIAL SECRETARY WILL HAVE THE DISCRETIONARY POWER TO DETERMINE A TARGET RATE OF RETURN IF HE CONSIDERS THAT THE CORPORATION IS NOT ACHIEVING SATISFACTORY RESULTS IN THE PREVAILING CIRCUMSTANCES. HE MAY ALSO GIVE DIRECTIONS AS TO THE MANNER IN WHICH THE CORPORATION'S INVESTMENTS ARE MADE. THE FINANCIAL SECRETARY, AFTER CONSULTATION WITH THE CORPORATION, MAY ORDER THE PAYMENT OF ANY EXCESS PROFIT TO THE GOVERNMENT.
THE ESTIMATE OF THE INITIAL CAPITAL, WHICH WILL BE QUANTIFIED IN PRECISE TERMS AFTER THE CORPORATION COMES INTO OPERATION, IS $4.2 BILLION. THIS INCLUDES THE VALUE OF ASSETS TRANSFERRED BY THE GOVERNMENT AND THE COST OF COMPLETING THE MODERNISATION AND ELECTRIFICATION OF THE RAILWAY.
PROVISION IS MADE IN THE BILL FOR THE CREATION OF AN INTEREST BEARING DEBT DUE TO THE GOVERNMENT OF $1 BILLION, TO BE PAID FROM THE DEVELOPMENT LOAN FUND. THE AMOUNT DERIVES FROM DETAILED STUDIES OF THE ANTICIPATED REVENUES OF THE CORPORATION OVER THE NEXT TEN YEARS WHICH WERE UNDERTAKEN TO ARRIVE AT A FINANCIAL STRUCTURE THAT WOULD ALLOW THE CORPORATION TO BECOME A COMMERCIALLY VIABLE ORGANISATION IN A REASONABLE PERIOD OF TIME. THE RATE OF INTEREST ON THE DEBT AND THE REPAYMENT ARRANGEMENTS WILL BE DETERMINED BY THE FINANCIAL SECRETARY, AFTER CONSULTATION WITH THE CORPORATION.
THE GOVERNMENT WILL GUARANTEE THE CORPORATION'S DEBT UP TO A FURTHER $500 MILLION, WHICH MAY BE INCREASED BY RESOLUTION OF THE LEGISLATIVE COUNCIL.
OTHER PROVISIONS IN THE BILL INCLUDE POWERS TO ENHANCE RAILWAY SAFETY. FOR EXAMPLE, THE CORPORATION WILL HAVE THE RIGHT OF ENTRY TO ANY LAND ADJOINING THE RAILWAY TO LOP OR REMOVE TREES CAUSING AN OBSTRUCTION OR CONCEALING A SIGNAL, A POWER WHICH IS PARTICULARLY NECESSARY WITH AN ELECTRIFIED RAILWAY, THE SPOKESMAN SAID.
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