WEDNESDAY, MAY 28, 1986
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BILL STRENGTHENS BUS PROFIT CONTROL SCHEMES
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A BILL AIMED AT RECTIFYING A FEW WEAKNESSES IN THE PROFIT CONTROL SCHEME FOR THE FRANCHISED BUS COMPANIES WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE PUBLIC BUS SERVICES (AMENDMENT) BILL 1986, THE SECRETARY FOR TRANSPORT, THE HON IAN MACPHERSON, SAID THAT UNDER THE EXISTING ORDINANCE OPERATION OF THE PROFIT CONTROL SCHEME IN RESPECT OF THE FRANCHISED BUS COMPANIES SHOULD BE REVIEWED BY THE GOVERNOR IN COUNCIL EVERY TWO YEARS.
+EARLIER REVIEWS OF THE SCHEME INDICATED THAT IT WAS WORKING SATISFACTORILY EXCEPT FOR A SMALL NUMBER OF ANOMALIES.
+ THE OBJECT OF THE BILL IS THEREFORE TO RECTIFY THESE IDENTIFIED WEAKNESSES OF THE SCHEME, BRINGING ITS OPERATION MORE IN LINE WITH STANDARD ACCOUNTING PRINCIPLES AND PRACTICES,+ MR MACPHERSON SAID.
HE NOTED THAT THE BILL PROPOSED TO INCLUDE REALISED AND UNREALISED CURRENCY EXCHANGE LOSS ARISING FROM TRANSACTIONS IN CONNECTION WITH THE FRANCHISE OF A BUS COMPANY AS OPERATING COSTS.
+REALISED CURRENCY EXCHANGE PROFITS ARISING FROM TRANSACTIONS IN CONNECTION WITH THE FRANCHISE AS WELL AS PROCEEDS OF SALE OF ANY STOCKS OF STORES AND SPARES ACQUIRED FOR THE PURPOSE OF OR IN CONNECTION WITH ITS FRANCHISE WILL BE INCLUDED AS OPERATING RECEIPTS.
+ DEFINITIONS OF OPERATING PROFIT AND PERMITTED RETURN ARE ALSO CLARIFIED,+ HE SAID.
THE BILL ALSO PROPOSED TO EXCLUDE TAX CHARGES RELATING TO PROFITS OF OPERATIONS OUTSIDE THE SCHEME IN CALCULATING THE OPERATING PROFITS, MR MACPHERSON ADDED.
DEBATE ON THE BILL WAS ADJOURNED.
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