XN000022-1976-05-26 — Page 6

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WEDNESDAY, MAY 26, 1976

IMPLEMENTATION OF TELEPHONE COMMISSION'S RECOMMENDATIONS GOOD PROGRESS MADE

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THE SITUATION OF THE HONG KONG TELEPHONE COMPANY WILL CONTINUE TO BE MONITORED AND NO RENTAL INCREASE WILL BE SANCTIONED UNTIL PROVEN NECESSARY TO MAINTAIN THE FINANCIAL STABILITY OF THE FIRM, INCLUDING ITS NECESSARY EXPANSION.

THE ACTING FINANCIAL SECRETARY, THE HON. DEREK JONES SAID TODAY IN A STATEMENT TO THE LEGISLATIVE COUNCIL ON THE IMPLEMENTATION OF THE RECOMMENDATIONS MADE BY THE COMMISSION OF INQUIRY INTO THE AFFAIRS OF THE COMPANY.

HE ALSO GAVE A DEFINITE ASSURANCE THAT THERE WOULD BE

NO INCREASE IN TELEPHONE RENTALS THIS YEAR.

HE POINTED OUT THAT THE COMMISSION OF INQUIRY HAD TENTATIVELY CONCLUDED THAT A FURTHER INCREASE IN RENTAL CHARGES OF AROUND 15 PER CENT MIGHT BE REQUIRED EARLY NEXT YEAR.

+THIS MAY TURN OUT TO BE THE CASE BUT, AS THINGS STAND AT THE MOMENT, NO FIRM ASSESSMENT CAN BE GIVEN AS TO THE TIMING OR THE SIZE OF ANY FUTURE INCREASE IN RENTALS.+

REPORTING ON THE PROGRESS OF IMPLEMENTATION. MR. JONES SAID A GREAT DEAL OF WORK HAD BEEN DONE, BOTH WITHIN THE GOVERNMENT AND THE TELEPHONE COMAPNY.

ON LEGISLATION, HE SAID THIS WOULD BE DEALT WITH IN TWO STAGES.

THE FIRST WOULD GIVE LEGISLATIVE EFFECT TO CERTAIN MORE PRESSING MATTERS ARISING FROM THE COMMISSION'S REPORT, INCLUDING THE REDUCTION OF INSTALLATION AND REMOVAL CHARGES, THE ABOLITION OF ROYALTY PAYMENTS, A PROVISION TO ENABLE THE GOVERNMENT TO APPOINT UP TO TWO DIRECTORS TO THE BOARD OF THE COMPANY, AND A FURTHER PROVISION TO LAY DOWN THAT CHARGES NOT SPECIFICALLY INCLUDED IN THE SCHEDULE TO THE TELEPHONE ORDINANCE WOULD BE SUBJECT TO AGREEMENT BETWEEN THE COMPANY AND THE POSTMASTER GENERAL.

+AN AMENDING BILL HAS ALREADY BEEN DRAFTED TO GIVE LEGISLATIVE EFFECT TO THESE PROPOSALS AND IT WILL SHORTLY BE INTRODUCED INTO THIS COUNCIL.+

/IN THIS