XN000022-1982-12-03 — Page 6

FRIDAY, DECEMBER 3, 1982

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KCR CORPORATION BILL PUBLISHED

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DETAILS OF THE PROPOSED LEGISLATION PROVIDING FOR THE CREATION OF A KOWLOON-CANTON RAILWAY CORPORATION WERE ANNOUNCED TODAY.

THE KOWLOON-CANTON RAILWAY CORPORATION BILL, WHICH IS PUBLISHED IN THE GOVERNMENT GAZETTE, WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON WEDNESDAY (DECEMBER 8). THE PROPOSED VESTING DATE OF THE CORPORATION IS JANUARY 1, 1983.

A GOVERNMENT SPOKESMAN SAID THE PREPARATION OF THE BILL HAD TAKEN ACCOUNT OF THE MASS TRANSIT RAILWAY CORPORATION ORDINANCE AND THE KOWLOON-CANTON RAILWAY ORDINANCE.

+WHILE THERE ARE MANY PROVISIONS IN THE BILL WHICH ARE IDENTICAL TO THESE ORDINANCES, THERE ARE NECESSARILY DIFFERENCES,+ THE SPOKESMAN POINTED OUT. THESE INCLUDE THE NEED TO PROVIDE FOR THE TRANSFER OF AN EXISTING RAILWAY AS OPPOSED TO CONSTRUCTING A NEW ONE, TO CATER FOR THE CARRIAGE OF GOODS AND CROSS-BORDER TRAFFIC, AND TO DEFINE MORE PRECISELY THE FINANCIAL POWERS AND DUTIES OF THE CORPORATION AS A RESULT OF EXPERIENCE GAINED FROM THE MTRC ORDINANCE.+

AS IN THE CASE OF THE MTRC, IT IS PROPOSED THAT THE GOVERNING BODY OF THE CORPORATION SHOULD BE A MANAGING BOARD COMPRISING A CHAIRMAN, THE MANAGING DIRECTOR OF THE CORPORATION AND BETWEEN FOUR AND EIGHT MEMBERS. THE MANAGING DIRECTOR WILL BE APPOINTED BY THE BOARD, SUBJECT TO THE APPROVAL OF THE GOVERNOR, AND THE CHAIRMAN AND THE OTHER MEMBERS WILL BE APPOINTED BY THE GOVERNOR. THE CHAIRMANSHIP OF THE CORPORATION WILL BE A PART-TIME APPOINTMENT AND THEREFORE THE CHAIRMAN WILL NOT BE THE CHIEF EXECUTIVE.

THE CORPORATION WILL BE EMPOWERED GENERALLY TO OPERATE AS WELL AS TO EXTEND AND IMPROVE THE EXISTING RAILWAY, ALTHOUGH ANY EXTENSION BEYOND THE EXISTING RAILWAY BOUNDARY WILL REQUIRE THE APPROVAL OF THE GOVERNOR-IN-COUNCIL. THE BILL ALSO ENABLES THE CORPORATION GENERALLY TO IMPROVE OR DEVELOP FOR NON-RAILWAY PURPOSES THE RAILWAY LAND VESTED IN IT OR ANY LAND WHICH IT MAY ACQUIRE.

FOLLOWING THE MTRC PRECEDENT, THE CORPORATION WILL HAVE THE POWER TO DETERMINE ITS OWN FARES AND CHARGES. IT WILL ALSO BE ALLOWED TO OPERATE BUSES OR OTHER MOTOR VEHICLE TRANSPORT SERVICES TO AND FROM RAILWAY PREMISES, SUBJECT TO THE PROVISIONS OF THE PUBLIC OMNIBUS SERVICES ORDINANCE.

THE DUTIES OF THE CORPORATION INCLUDE THE REQUIREMENT TO EXERCISE ITS POWERS HAVING REGARD TO THE REASONABLE NEEDS OF THE TRANSPORT SYSTEM OF HONG KONG. THIS MEANS THAT WHILE THE CORPORATION WILL BE EXPECTED TO PERFORM ITS FUNCTIONS IN ACCORDANCE WITH ORDINARY COMMERCIAL PRINCIPLES, IT WILL BE PRECLUDED FROM MAXIMISING

ITS RETURN ON THE ASSETS EMPLOYED BY, FOR EXAMPLE, SEEKING TO OBTAIN MORE REVENUE BY CHARGING HIGHER FARES AND CARRYING FEWER PASSENGERS, THE SPOKESMAN EXPLAINED.