XN000022-1983-01-21 — Page 8

FRIDAY,

1933

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TRANSFER OF ASSETS TO KCR CORPORATION

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THE GOVERNOR HAS DECLARED FEBRUARY 1 AS THE APPOINTED DAY FOR THE TRANSFER OF ASSETS AND THE VESTING OF RAILWAY LAND IN THE KOWLOON CANTON RAILWAY CORPORATION.

THIS FOLLOWS APPROVAL BY THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL OF THE TRANSFER OF RAILWAY ASSETS WORTH $4.2 BILLION TO THE CORPORATION.

THE KCR CORPORATION HAS BEEN IN EXISTENCE SINCE DECEMBER 24, 1982 WHEN THE KCR CORPORATION ORDINANCE 1982 CAME INTO OPERATION. UNTIL FEBRUARY 1 THE FUNCTIONS OF THE CORPORATION HAVE BEEN RESTRICTED TO MATTERS PREPARATORY TO THE FULL ASSUMPTION OF THE UNDERTAKING OF THE RAILWAY. FROM FEBRUARY 1 THE CORPORATION WILL BE FULLY RESPONSIBLE FOR THE OPERATION OF THE KOWLOON-CANTON RAILWAY (BRITISH SECTION).

THE $4.2 BILLION WORTH OF RAILWAY ASSETS TO BE TRANSFERRED CONSIST OF LAND, BUILDINGS AND OPERATIONAL ASSETS VALUED AT $1.9 BILLION, ELECTRIFICATION AND MODERNISATION WORKS (SOME STILL IN PROGRESS) AMOUNTING TO $2.2 BILLION; AND A $77 MILLION LOAN FROM THE DEVELOPMENT LOAN FUND FOR USE AS WORKING CAPITAL.

OF THE TOTAL ASSETS OF $4.2 BILLION, $3.2 BILLION IS IN EFFECT GOVERNMENT'S EQUITY AND THE REMAINDER ($1 BILLION) IS A DEBT DUE TO THE GOVERNMENT. THIS DEBT SHALL BE REPAYABLE ON SUCH TERMS AND CONDITIONS AS THE FINANCIAL SECRETARY MAY, AFTER CONSULTATION WITH THE CORPORATION, DECIDE.

THE FINANCE COMMITTEE HAS ALSO APPROVED SETTLEMENT TERMS FOR STAFF OF THE KOWLOON-CANTON RAILWAY AS COMPENSATION FOR THEIR RETIREMENT AND ABOLITION OF POSTS BECAUSE OF THE HIVING OFF OF THE KCR.

THE TERMS WERE RECOMMENDED BY AN EX-GRATIA PAYMENT ASSESSMENT PANEL CHAIRED BY AN UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL. THE PANEL WAS SET UP NEARLY ONE YEAR AGO TO CONSIDER THE LEVEL OF EX-GRATIA PAYMENTS WHICH SHOULD BE MADE TO THE STAFF IN ORDER THAT THEY WOULD NOT BE WORSE OFF AS A RESULT OF THE CHANGE IN STATUS OF THE KCR.

A TOTAL OF 1 514 CIVIL SERVANTS DIRECTLY CONCERNED WITH THE OPERATION OF THE RAILWAY WILL BE AFFECTED BY THE TRANSFER OF SERVICE FROM A GOVERNMENT DEPARTMENT TO A PUBLIC CORPORATION.

A GOVERNMENT SPOKESMAN SAID THAT FOLLOWING AGREEMENT WITH REPRESENTATIVES OF THE STAFF, INDIVIDUAL LETTERS FROM THE SECRETARY FOR THE CIVIL SERVICE WILL BE SENT TO EACH OF THESE OFFICERS GIVING THEM THREE MONTHS NOTICE OF THE ABOLITION OF OFFICE TO BEGIN ON FEBRUARY 1, THE LETTERS WILL ALSO INDICATE THE AMOUNT OF EX-GRATIA DISTURBANCE PAYMENT DUE TO THEM ON CONDITION THAT THEY ACCEPT OFFERS OF EMPLOYMENT FROM THE NEW CORPORATION, WITH EFFECT FROM MAY 1.

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