XN000022-1974-06-19 — Page 11

WEDNESDAY, JUNE 19, 19/4

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$10 MILLION DEPOSIT REQUIREMENT

FOR AIRPORT DUTY-FREE SHOP EXPLAINED

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THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, EXPLAINED TODAY THAT THE $10 MILLION DEPOSIT REQUIRED FROM TENDERERS FOR THE DUTY-FREE SHOP CONCESSION AT THE AIRPORT WAS TO COVER THE GOVERNMENT AGAINST REVENUE LOSS SHOULD THE SUCCESSFUL TENDERER WITHDRAW HIS SERVICES DURING THE CURRENCY OF THE CONTRACT.

+THE REASON FOR FIXING UPON THIS SUM WAS THAT IT REPRESENTS TWO TO THREE MONTHS REVENUE FROM THIS CONCESSION AT THE PRESENT RATE OF YIELD, MR. HADDON-CAVE TOLD COUNCIL WHEN REPLYING TO A QUESTION FROM THE HON. 100 PAK-CHUEN.

HE EXPLAINED THAT IF THE SUCCESSFUL CONCESSIONAIRE WERE TO WITHDRAW HIS SERVICES DURING THE PERIOD OF THE CONTRACT, IT WOULD TAKE ABOUT THREE MONTHS TO INVITE TENDERS, TO PLACE A CONTRACT WITH ANOTHER CONCESSIONAIRE, AND FOR HIM TO ORGANISE HIS BUSINESS NOT AN INCONSIDERABLE TASK GIVEN THE CAPITAL REQUIRED, THE SIZE OF STOCKS THAT HAVE TO BE HELD, THE NUMBER OF STAFF EMPLOYED, AND THE NEED TO DEVELOP PROCEDURES WHICH ENSURE PROMPT EXECUTION OF ORDERS.

+THE DEPOSIT IS DESIGNED TO COVER THE GOVERNMENT AGAINST LOSS OF REVENUE DURING THIS PERIOD,+ HE EXPLAINED.

THE FINANCIAL SECRETARY ADDED THAT BY DISCOURAGING THE CONCESSIONAIRE FROM WITHDRAWING, THE DEPOSIT ALSO HAD THE CON EFFECT OF ENSURING THAT HONG KONG DOES NOT FIND ITSELF IN A POSITION OF HAVING AN AIRPORT WITH NO FACILITIES FOR DUTY-FREE SALES.

IF. IN THE EVENT, THE SIZE OF THE PRESCRIBED DEPOSIT HAD THE EFFECT OF RESTRICTING THE RESPONSE TO THE TENDER INVITATION, THE CENTRAL BOARD WOULD TAKE THIS INTO ACCOUNT WHEN DECIDING WHETHER OR NOT TO RECOMMEND ACCEPTANCE OF THE BEST TENDER OFFERED OR TO RE-ISSUE THE TENDER INVITATION, MR. HADDON-CAVE SAID.

THE TENDERS WERE DUE IN ON JUNE 14 AND WILL BE CONSIDERED BY THE CENTRAL TENDER BOARD ON JUNE 26.

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POLICE STATEMENTS ALREADY TAKEN IN CHINESE

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THE GREAT MAJORITY OF STATEMENTS HADE AT POLICE STATIONS ARE ALREADY TAKEN DOWN IN CHINESE, THE SECRETARY FOR SECURITY, THE HON. LEWIS DAVIES TOLD THE LEGISLATIVE COUNCIL TODAY.

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IN REPLY TO THE HON. HILTON CHEONG-LEEN WHO ALSO ASKED WHEN IT WOULD BE POSSIBLE FOR COPIES OF THESE STATEMENTS TO BE SUPPLIED TO THOSE WHO MADE THEM AND WHO DID NOT UNDERSTAND ENGLISH, MR. DAVIES SAID: +ANYONE WHO REQUIRES A COPY OF A STATEMENT IS ENTITLED TO HAVE ONE ON REQUEST.

+AS MANY THOUSAND STATEMENTS ARE TAKEN EACH YEAR IN RESPECT OF CRIMINAL MATTERS ALONE, COPIES ARE NOT SUPPLIED AUTOMATICALLY,+ HE ADDED.

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