21
WEDNESDAY, MAY 12, 1993
AN
"THE
AUTHORITY IS SPECIFICALLY DEBARRED FROM INTERFERING
INSURER'S PRICING POLICY, ON THE PRINCIPLE THAT DECISIONS ARE BEST DETERMINED BY MARKET FORCES, HE SAID.
中中
WITH
COMMERCIAL
OF
THE TOTAL 15,322 TRAFFIC ACCIDENTS RECORDED IN 1992, THERE
WERE ONLY 13 CASES INVOLVING HANDICAPPED DRIVERS.
DIVIDEND PAYMENT HAS NO IMPACT ON KCRC FARE
* * *
TODAY
THE SECRETARY FOR THE TREASURY, MR DONALD TSANG, (WEDNESDAY) SAID THE DISTRIBUTION OF DIVIDENDS TO THE GOVERNMENT OVER THE LAST THREE YEARS HAD HAD NO IMPACT ON KOWLOON-CANTON RAILWAY CORPORATION'S (KCRC) DEVELOPMENT PROGRAMME AND FARE LEVELS.
DURING THE LAST THREE YEARS, AFTER THE PAYMENT OF DIVIDENDS TO THE GOVERNMENT OF $415 MILLION, AND TRANSFERS OF $813 MILLION TO ITS DEVELOPMENT RESERVE (WHICH NOW STANDS AT $1,233 MILLION) THE CORPORATION'S RETAINED PROFITS HAVE INCREASED BY $371 MILLION.
OF
AND FARES HAVE NOT NEEDED TO BE INCREASED OVER THE LEVEL INFLATION, MR TSANG TOLD LEGISLATIVE COUNCILLORS IN A WRITTEN REPLY TO A QUESTION BY THE HON LAU CHIN-SHEK.
BASIS.
THE PAYMENT OF ANY DIVIDENDS IS CONSIDERED ON A YEAR BY YEAR
"THE INTERESTS OF THE PUBLIC AT LARGE AND THOSE OF TRAVELLING PUBLIC WHO MAKE REGULAR USE OF THE KCR IN PARTICULAR REIGN PARAMOUNT.
"DUE ACCOUNT IS TAKEN OF BOTH FARE LEVELS AND FUTURE INVESTMENT REQUIREMENTS AND THUS THE LEVELS AND QUALITY OF SERVICE TO THE CORPORATION'S EXISTING AND POTENTIAL CUSTOMERS, MR TSANG SAID.
THE $415 MILLION IN DIVIDENDS PAID IN THE LAST THREE YEARS REPRESENTS THE ONLY RETURN TO THE PUBLIC ON THEIR SUBSTANTIAL INVESTMENT IN THE CORPORATION SINCE 1983.
NO DIVIDEND WAS SOUGHT IN THE YEARS 1983/1989.
THE
COST OF NET ASSETS VESTED IN THE KCRC BY THE REPRESENTS THE INITIAL CAPITAL OF THE CORPORATION
T
GOVERNMENT $2,117 MILLION.
IN RECOGNITION OF THIS INVESTMENT, THE KCRC ORDINANCE PROVIDES THAT THE FINANCIAL SECRETARY MAY,
AFTER CONSULTATION WITH THE CORPORATION, GIVE THE CORPORATION DIRECTIONS REQUIRING IT TO PAY WHOLE OR PART OF THE EXCESS TO THE GOVERNMENT.
THE
/THE DIVIDENDS