1951-HKRS29-8-18_Part03 — Page 41

Fier rent.

Fares and charges,

Appendix

L

(2) For the purposes of this paragraph "frontage" means-a In Victoria: Praya from the Northern end of Ice House Street to the Western boundary of the Naval Dockyard.

In Kowloon : Kowloon Paint from the Eastern side of the public pier at Kowivon Point to the pier to the East of Kowloon Point known as "Holts Wharf",

3. (1) The Company shall pay as pier rent to the Govern- ment for the use of the piers the total sum of $15,000 per month inclusive of rates. The said rent shall be payable in advance on the first day of each calendar month.

(2) If any other pier be substituted, the amount of the rent therefor shall be such sum as may be agreed between Government and the Company regard being had to the capital cost of the said substituted pier (excluding the cost of frontage) and includ- ing interest on capital cost at the rate of 4% = Provided that if such agreed sum results in the monthly total of rent payable as aforesaid being exceeded, then the amount of such excess shall be deducted from the monthly royalty payable under paragraph 5 ¦ of this Schedule.

*. (1) The fares and charges which may be taken by the Company shall be those specified in Appendix 1, or such other fares and charges as may from time to time be fixed by the Governor in Council as fair and reasonable having regard as well to the Company as to the general public.

(2) If by reason of n material change of economic or financial conditions or of any other circumstances affecting the ferry service, the fares and charges for the time being authorized are, in the opinion of the Company, no longer reasonably remunerative, and the Governor in Council upon the request of the Company fails to authorize increased fares and charges to an amount as would, in the opinion of the Company he reasonably remunerative, the question shall be submitted to arbitration, and the Company may charge such increased fares and charges as may be decided upon arbitration to be reasonable, having regard to any change of economic and financial conditions, or other circumstances affecting

the service: Provided that the Governor in Council may at any time, if in his opinion a further change of economic or financial conditions or other circumstances shall have occurred affecting the ferry service and rendering such increased fares and charges unduly high, call upon the Company to make such reduction in the fares and charges as in the opinion of the Governor in Council is reasonable, and if the Company fails to make such reduction voluntarily, the matter shall be referred to arbitration and the fares and charges which the Company shall thereafter be entitled to charge shall be such fares and charges as shall have been decided upon arbitration to be reasonable, having regard to such further change of economic or financial conditions or other circumstances affecting the service.

(3) Whenever under the last preceding sub-paragraph the Governor in Council is of opinion that an increase in fares and charges may be authorized by him or that he would be justified in calling upon the Company to reduce die fares and charges. the Governor in Council may instead vary the rate of royalty in such manner as he may consider reasonable but so that any such variation shall not increase the amount of royalty payable under paragraph 5.

5. (1) In respect of the year ending on the 31st December, Royalty. 1950, the Company shall within fourteen days of the coming into force of this Ordinance, pay to Government the sum of $600,000 in full discharge of all sums due by way of royalty under this paragraph or under paragraph 13 for that year.

(2) As from the 1st January, 1951, the Company shall pay Government a royalty by way of percentage of the Company's gross monthly receipts upon collection of the fares and charges authorized in Appendix 1. The percentage shall he computed. in the manner specified in Appendix 11 and payment in respect of each month shall become due on the 14th day of the subsequent month; Provided that payment of the percentage due from the 1st January, 1951, to the end of the month during which this Ordinance comes into force shall not be deemed to become due until the 14th day of the month next following such lastly mentioned month: Provided further that it shall be lawful