1965-HKRS32-8-71_Part01 — Page 19

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GOVERNMENT BUSINESS.

(1) Supplementary Provision for the Quarter ended 31st March, 1965.

The Financial Secretary to move the following resolution :-

Resolved that the Supplementary Provisions for the Quarter

ended 31st March, 1965, as set out in Schedule No. 4. of 1964-65, be approved.

(2) Inland Revenue Ordinance Chapter 112.

The Financial Secretary to move the following resolution :-

Resolved, pursuant to section 85 of the Inland Revenue

Ordinance, that the Inland Revenue (Amendment) Rules 1965, made by the Board of Inland Revenue on the 9th day of July 1965 under section 85 of that Ordinance, be approved,

(3) Frozen Confections (Amendment) By-laws 1965.

Mr. K.S. Kinghorn to move the following resolution ;-

Resolved, pursuant to section 144 of the Public Health and

Urban Services Ordinance 1960, that the Frozen Confections (Amendment) By-lawa 1965, made by the Urban Council under section 56 or the said Ordinance on the 6th day of July, 1965, be approved.

(4) Ventilation (Amendment) By-laws 1965.

Mr. K.S. Kinghorn to move the following resolution :-

Resolved, pursuant to section 144 of the Public Health and

Urban Services Ordinance 1960, that the Ventilation (Amendment) By-laws 1965, made by the Urban Comell under section 88 of the said Ordinance on the 6th day of July, 1965, be approved.

(5) Croas-Harbour Tunnel.

Mr. A.M.J. Wright to move the following resolution :-

Resolved that this Council approves in principle the grant of a

franchise to construct and operate a tunnel across the harbour between Wanchai and Hing Hou in accordance with the basic conditions set down in the Sabeduls.

SCHEDULE

(1) The Victoria City Development Company (or such other

company as may with the approval of the Company and Government be substituted for it) (hereinafter referred to 29 "the Company") to be granted an exclusive franchise to construct and operate a four-lane vehicular tunnel batyeen Wanchai and lung Hom,

(2) The franchise to boar no rights for the construction of

a second turmel on the same or any other route.

(3) The franchise to run for 30 years from the date (here- inafter referred to as the "start of construction") on which permission is given by Government to commence physical construction works on the tunnel site. There is to be no right of renewal thereafter.

(4) (a) A royalty of 12% on gross operating receipts to

be payable for the period of the franchise provided that on application by the Company the annual cash payment during the first ten years of operation of the tunnel, may be reduced so that it is less than

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12%, but not less than 7 Any arrangement a for reduced royalty are to be reviewed annually. The difference between the amount duo at. 124% and the actual cash payment

at the reduced rate to be credited to Government in the accounts of the Company and the balance to earn compound interest at 7% per annum compounded quarterly. This account to be liquidated not less than 5 years before the end of the franchise,

(b) Royalty payments to be paid quarterly in arrears

within ope month of the quarter to which the operating receipts relate.

(-) "Operating receipts" to include all revenue

received by the Company in consideration of gooda and services offered but to exalude income surned on investmenta and interest received on current asseta.

(5) (a) Government is to assume liability for any

compensation which it may be decided to pay to the ferry companies arising from the 1956 Government statement.

(b) The Hong Kong and Yaurati Ferry Company Limited

and the Star Ferry Company Limited to be given the option of taking up to 5 each of the equity capital of the Company. In the event that either ferry company does not take up the option in full the difference may be offered to the other ferry company. All options are to be kept open for one month from the date of offer.

(6) The Company to pay from the start of construction an

annual rent of $75,000 to Government for way-leave over the Crown land (including sea-bed) occupied by the tunnel itself and ita approaches as determined under sub-paragraph (25) below, subject to Government retaining full development rights over the land in question to the extent that such develoment does not interfere with traffic using the tunnel and excluding the site of any building for which a lease may be granted as set out in sub-paragraph (7) below.

(7) The Company to be granted for a period conterminous with the franchise a lease of, and to pay a premiun at the rate of $250 per square foot in respect of, land for the erection of auch buildings as may be agreed between the Director of Public Works and the Company as being hecebuary for the efficient operation of the franchise (other than toll booths, which, it is assured, would be of simple one or two storey construction). Such premium to be payable, at the Company's option, by equal annual instalmente over the period of the franchise, less the last year, with interest at . Zone Crow Rent at $5,000 per acre per armu to be charged for the land on which the toll booths stand, and Government to be entitled if it so desired in connexion with the exercise of its development rights under sub-paragraph (6) to relocate the existing toll booths either separately or as part of a building erected in the exercise of its development rights.