XN000022-1980-03-26 — Page 19

WEDNESDAY, MARCH 26, 1980

17

HK NEEDS PERMANENT TRADE EXHIBITION CENTRE

*****

A PERMANENT TRADE EXHIBITION CENTRE IS AT PRESENT +SADLY LACKING+ IN HONG KONG, THE HON FRANCIS TIEN TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

TO BACK UP HIS VIEW THAT SUCH A PROJECT IS ECONOMICALLY JUSTIFIABLE, MR TIEN POINTED OUT THAT THE REPORT BY THE ADVISORY COMMITTEE ON DIVERSIFICATION RECOMMENDED THAT GOVERNMENT SHOULD LOSE NO TIME IN SEEKING FURTHER ADVICE ON HOW SUCH A FACILITY SHOULD BE CREATED+.

HE SUGGESTED THAT A WORKING PARTY BE SET UP TO BE FOLLOWED BY THE CREATION OF A PROVISIONAL AUTHORITY TO ENSURE ITS PROGRESSION, SIMILAR TO SUCH STATUTORY CORPORATIONS AS THE MASS TRANSIT RAILWAY CORPORATION, THE HONG KONG INDUSTRIAL ESTATES CORPORATION AND THE HONG KONG EXAMINATION AUTHORITY.

HE ALSO OUTLINED THE SEQUENCE IN WHICH THE PROJECT COULD BE ACHIEVED. WHILE ACKNOWLEDGING THAT THE PROPOSED PROJECT COULD NOT BE CREATED WITHOUT THE GOVERNMENT'S ASSISTANCE IN RESPECT OF BOTH PLANNING AND RESOURCES, MR TIEN SAID I DO NOT THINK THAT GOVERNMENT SHOULD BE DIRECTLY INVOLVED IN THE CONSTRUCTION OR MANAGEMENT OF THE PROPOSED CENTRE.

+I FEEL THAT SUCH AN EXHIBITION CENTRE SHOULD BE CREATED AS A PUBLIC CORPORATION BY STATUTE, SOMEWHAT ALONG THE LINES OF THE MTRC ORDINANCE.

+IN ADDITION TO SETTING OUT THE OBJECTS AND FUNCTIONS OF THE CORPORATION, AND MAKING SURE THAT THE COMPOSITION OF ITS MANAGEMENT BODY WOULD ENABLE GOVERNMENT REPRESENTATION, WE WOULD NEED TO ENSURE THAT THE CORPORATION IS REQUIRED BY LAW TO MANAGE THE PROJECT ALONG COMMERCIAL LINES.+

AS FOR A SUITABLE SITE, MR TIEN PROPOSED THAT THE GOVERNMENT COULD GRANT LAND BY WAY OF PRIVATE TREATY AT FULL MARKET VALUE IN EXCHANGE FOR THE CORPORATION'S EQUITY, THUS ENABLING THE GOVERNMENT TO BE THE SOLE OWNER OF THE CORPORATION.

BECAUSE THE EQUITY IS EXCHANGED AGAINST THE FULL MARKET VALUE OF THE SITE, MR TIEN CONTINUED, THE QUESTION OF SUBSIDY WOULD NOT ARISE.

HAVING OBTAINED THE LAND, THE CORPORATION COULD THEN NEGOTIATE WITH REAL ESTATE, CONSTRUCTION, BANKING AND OTHER BUSINESS INTERESTS FOR THE BUILDING OF THE CENTRE, HE ADDED.

MR TIEN ENVISAGED THAT THE CORPORATION WOULD MAKE A LOSS INITIALLY BUT HE POINTED OUT THIS WOULD SUBSEQUENTLY BE RECOVERED WHEN IT PICKS UP A GREATER VOLUME OF BUSINESS.

+TO COVER THIS CONTINGENCY, IT MUST BE OPEN TO GOVERNMENT TO LEND MONIES TO THE CORPORATION AT WHATEVER TERMS THIS COUNCIL MAY DEEM FIT.

/+AS IGNG