WEINESDAY, APRIL 25, 1984
13
+ IF AND WHEN THE COMPANY SHOULD SWITCH TO A NEW COMPUTER WITH ADDITIONAL CAPABILITIES, I WOULD CERTAINLY ASK FOR THIS TO BE RE-EXAMINED, HE SAID.
REFERRING TO A REQUEST THAT THE CROSS-HARBOUR TUNNEL TOLL SHOULD NOT BE FURTHER INCREASED, HE SAID THAT THE COMPANY'S APPLICATION FOR A TOLL INCREASE WAS BEING EXAMINED WITH CARE BY THE ADMINISTRATION.
+TO THE EXTENT THAT THE CROSS-HARBOUR TUNNEL COMPANY'S REVENUE IS REDUCED AS A RESULT OF RESISTANCE TO THE TUNNEL TAX, A SMALL INCREASE MAY BE JUSTIFIED, AND, IF SO, THERE IS A POSSIBILITY THAT SUCH AN INCREASE CAN BE OFFSET WITHIN THE TUNNEL TAX.
+HOWEVER, IT WILL BE SOME TIME BEFORE THE EFFECT OF THE TUNNEL TAX CAN BE CLEARLY ESTABLISHED, UNTIL THEN, NO FIRM VIEW CAN BE REACHED, HE SAID.
MR YUE SAID ALSO THAT EXTENSIVE CONSULTATIONS WERE GOING ON WITH THE TAXI ASSOCIATIONS AND WITH ALL THE DISTRICT BOARDS AND HE HOPED TO REPORT ON THIS TO THE EXECUTIVE COUNCIL IN JUNE.
ECIC CONTINGENT LIABILITY RAISED
****
A MOTION TO INCREASE THE CONTINGENT LIABILITY OF THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION BY $500 MILLION TO $3 500 MILLION WAS APPROVED BY THE LEGISLATIVE COUNCIL TODAY.
MOVING THE MOTION, THE FINANCIAL SECRETARY THE HON SIR JOHN BREMRIDGE SAID THAT WITH EXPORTS GOING WELL, THE CONTINGENT LIABILITIES OF THE CORPORATION WERE INCREASING AT THE RATE OF ABOUT $50 MILLION A QUARTER,
THIS RATE MIGHT ALSO ACCELERATE, AS A RESULT OF NEW AND EXPANDED BUSINESS, INCLUDING THAT GENERATED BY THE LAUNCHING OF A COMPREHENSIVE SHIPMENTS POLICY, HE SAID.
+ IN THE CIRCUMSTANCES THE CORPORATION'S ADVISORY BOARD CONSIDERS THAT THE EXISTING STATUTORY LIMIT MAY BE REACHED DURING THE SECOND HALF OF 1984. IT HAS THUS ADVISED THAT THE MAXIMUM CONTINGENT LIABILITY SHOULD BE INCREASED BY $500 MILLION TO $3 500 MILLION, HE SAID.
FAILURE TO RAISE THE LIMIT COULD RESULT IN THE CORPORATION HAVING TO TURN AWAY FURTHER BUSINESS. ON THE BASIS OF THE USUAL GEARING OF THREE, UP TO $167 MILLION WILL HAVE TO BE SET ASIDE FROM THE FREE FISCAL RESERVES AS COVER FOR THE ADDITIONAL CONTINGENT LIABILITY, + MR BREMRIDGE SAID.
HE STRESSED, HOWEVER, THAT THIS MAXIMUM LIABILITY WAS A THEORETICAL AMOUNT, AND WAS NEVER LIKELY TO BE AT RISK AT ANY ONE TIME.
/14