CO129-608-7 Future policy- Report on Port Administration by Sir David Owen 24-2-1941 - 24-2-1941 — Page 13

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(g) No charges or rents to be levied by the Trust without the consent of the

Governor thereto having been first obtained.

NOTE. It is customary in Port Trusts for the legislature to fix a maximum scale of charges beyond which the Trusts cannot go without further Parliamentary sanction. This proviso is made with the object of protecting the public, that is, the ship- owners and merchants, against unduly heavy charges, although naturally it is to the interest of the Trusts to keep their charges as low as possible. I have inserted this provision with an eye not only on the maximum charges but on the minimum as well. It might be conceivable, for instance, that the proposed Trust would suggest too low rentals for the renewal of the pier leases, in which case the Governor could refuse his sanction and call upon the Trust to reconsider the matter. At the same time, as far as I can gather, the holders of the pier leases which expire in 1949, do expect to be charged higher rents for renewals, but not unreasonably higher. What would be a fair rental is the crux of the matter, but it should not be difficult to arrive at it.

(h) The necessary staff for the working of the Trust to be supplied by the Government, from their official establishment, for the experimental period of three years.

NOTE. I visualize at the end of the three years a permanent Trust with its own staff. This staff should not be a large one, in fact, it should be kept as small as possible, and would consist of a small secretariat, an engineer with the necessary assistants and a Harbour Master without any extraneous duties.

It should not involve, on the whole, any staff increase to the present Government establishments, for, as the Trust would merely be taking over duties now performed by the Government, all that it should mean would be a transfer of staff, which should not be a real difficulty if the staff were guaranteed no worse terms and conditions than they now enjoy. The superannuation might present a difficulty, but seeing that the staff entered the Government service in the first instance, it would only be fair for the Government to assume the responsibility for the superannuations.

(i) The Trust to regulate its own procedure, with the proviso that a quorum at any meeting should be four, but no Trustee to be allowed to vote on any question directly affecting his own or his firm's business.

(1)

NOTE. This is common form.

The policy to be adopted by the Trust to be that of seeing that adequate and proper facilities are available in the Harbour for ships and their cargoes, but to allow approved private enterprise to provide these facilities, as far as possible, and also let private enterprise do its own " operating"

NOTE.-I would strongly recommend this line of policy, having regard to the conditions in Hong Kong. It would mean that the leases of the existing piers would be renewed and new ones granted as occasion arose, although, as I mention later on, it might be wise for the Trust to construct some new piers to replace those that are dilapidated, and let them at appropriate rentals. In all cases, however, the lessees or tenants them- selves should be left to operate the Piers without inter- ference, so long as they coped with the requirements of the trade of the Port. In this way there should not be any fear of increased charges on the shipping trade.

On the matter of renewing the leases of the Piers on their expiration in 1949, I might venture to suggest that the term

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