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Committee Stage Amendments Proposed by Mr Zachary Wong
Mr President, I would now like to comment on the two amendments which will be moved by the Hon Zachary Wong, namely:
(a)
(b)
to require LegCo approval by way of resolution for each and every toll increase; and
to change the membership of the Toll Stability Fund Management Committee.
The first amendment proposed by Mr Wong, if enacted, would fundamentally change the toll adjustment arrangements which are an integral part of the Bill. I must reiterate that the toll adjustment arrangements are part and parcel of the BOT package offered by the franchisee. Let us be very clear that this formula has not been imposed by the Administration. The consistent message we received in our initial soundings of private sector interest in the project, as well as in the tendering exercise, was that this toll adjustment arrangement is a prerequisite to attract private sector interest in the BOT project. Tenderers were free to make counter proposals on the toll regime, and the fact is that all three bids which we received contained a similar toll adjustment mechanism.
As the Hon Miriam Lau has remarked at the specific request of the Bills Committee, we enquired of the proposed franchisee whether he would still be prepared to undertake the project if the franchise was amended to require LegCo approval for toll increases. The consortium has made it very clear that should there be such a change to the toll adjustment mechanism, it would be unable to obtain bank financing and therefore it could not undertake the project. Hon. Members should therefore be under no illusions whatsoever the consortium will withdraw if the amendment is passed. This means no Route 3 CPS project. That would be totally against the public interest. The Hon Lee Wing-tat and the Hon Yeung Sum's comment that the Administration has not heeded this Council's views on calling for BOT projects is with respect one-sided. They have simply reflected their party's position which was not the majority view of LegCo at that time. As far as the project is concerned the bids received were examined by the Central Tender Board. We have obtained the best offer which is in the public interest. I am not in the position in response to Mr Lee Wing-tat's request to give any indication today as to whether further BOT projects wil! have similar toll adjustment formulas. Each project and approach must be separately considered and assessed.