XN000022-1975-02-28 — Page 3

FRIDAY, FEBRUARY 28, 1975

*

THE GOVERNOR MAY FOR SUFFICIENT REASON REMOVE A PERSON FROM THE BOARD.

* THE CORPORATION MAY NOT INVEST IN ANY TYPE OF SECURITIES

WITHOUT THE FINANCIAL SECRETARY'S APPROVAL.

*

THE CORPORATION IS REQUIRED TO PROVIDE AUDITED ACCOUNTS AND A REPORT IN ITS ACTIVITIES AND TO FURNISH INFORMATION TO THE GOVERNOR ON REQUEST.

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THE BILL PROVIDES FOR A BOARD OF THE CORPORATION TO CONSIST OF THE CHAIRMAN OF THE CORPORATION, ITS MANAGING DIRECTOR AND BETWEEN FOUR AND EIGHT MEMBERS APPOINTED BY THE GOVERNOR. IT IS ENVISAGED THAT THESE MEMBERS WILL INCLUDE BOTH PUBLIC OFFICERS

THE LATTER WILL BE AND PEOPLE DRAWN FROM THE PRIVATE SECTOR.

APPOINTED FOR A TERM NOT EXCEEDING THREE YEARS BUT MAY BE RE- APPOINTED.

THE CHAIRMAN WILL BE APPOINTED BY THE GOVERNOR, WHO WILL ALSO DETERMINE HIS TERMS AND CONDITIONS OF SERVICE.

THE MANAGING DIRECTOR WILL BE APPOINTED BY THE CORPORATION BUT IT MUST OBTAIN THE GOVERNOR'S APPROVAL FOR HIS APPOINTMENT, SUSPENSION OR DISMISSAL.

ONE OF THE IMPORTANT FEATURES IN THE FINANCIAL PROVISIONS OF THE BILL IS THAT THE CORPORATION WILL HAVE AN INITIAL AUTHORISED CAPITAL OF $2,000 MILLION.

THIS CONSISTS OF:

* THE AMOUNT OF THE GOVERNMENT EQUITY CONTRIBUTION, WHICH

IS $800 MILLION IN CASH AND

*

THE PROVISION OF A REASONABLE MARGIN TO COVER FURTHER EQUITY ISSUES IN RESPECT OF GRANTS OF LAND AND TO MEET TAX LIABILITIES.

THE BILL WILL ENABLE THE GOVERNOR IN COUNCIL, IF NECESSARY, TO AUTHORISE A GOVERNMENT GUARANTEE FOR THE CORPORATION'S DEBTS, WITH ANY SUMS REQUIRED FOR FULFILLING A GUARANTEE FALLING AS A CHARGE TO GENERAL REVENUE. +THIS WAS IMPORTANT BOTH TO THE CORPORATION AND TO POTENTIAL LENDERS, THE SPOKESMAN SAID,

THE BILL ALSO PROVIDES FOR THE CORPORATION TO REIMBURSE THE GOVERNMENT FOR CERTAIN EXPENDITURE INCURRED BY IT ON THE RAILWAY. THIS WILL INCLUDE EXPENDITURE ON SALARIES AND OTHER ADMINISTRATIVE OVERHEADS IN PLANNING THE RAILWAY, FEES PAID TO CONSULTANTS AND ADVISERS AND THE SALARIES OF STAFF BEING RECRUITED BY THE CORPORATION. IT WILL ALSO INCLUDE THE COST OF INVESTIGATIONS, ADDITIONAL PUBLIC WORKS, THE DIVERSION OF PUBLIC UTILITY INSTALLATIONS AND SOME OF THE COMPENSATION ARISING FROM CLAIMS IN RELATION TO LAND.

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THE SPOKESMAN