XN000022-1983-10-12 — Page 18

16

WEDNESDAY, OCTOBER 12, 1983

+ IT IS THEREFORE APPROPRIATE FOR THE GOVERNMENT TO HAVE CONTROL MECHANISMS WHICH ARE NORMAL BETWEEN PARENT AND SUBSIDIARY AND WHICH ARE NOT SET OUT SPECIFICALLY IN THE EXISTING LAW,+ SIR JOHN SAID.

HE EXPLAINED FURTHER THAT THE AMENDMENTS ENSURE THAT THE FINANCIAL SECRETARY IS CONSULTED AND HIS APPROVAL OBTAINED BEFORE THE MTRC APPLIES ITS PROFITS IN ANY WAY, AND ALSO MAKE CLEAR THAT THE ESTABLISHMENT AND USE OF ANY GENERAL OR SPECIFIC

RESERVE FUND REQUIRES THE PRIOR APPROVAL OF THE FINANCIAL SECRETARY, WHO WILL HAVE POWER TO DIRECT THAT THE WHOLE OR PART OF

THE MTRC'S PROFITS BE CARRIED TO RESERVE A SECTION WAS ALSO INCLUDED TO :

(1) EMPOWER THE MTRC TO DECLARE AND PAY DIVIDENDS, AND

(2) PROVIDE THAT MTRC MAY BE DIRECTED TO PAY AS DIVIDEND

INTO THE GENERAL REVENUE THE WHOLE OR PART OF ANY PROFITS IN ANY FINANCIAL YEAR.

THE AMENDMENTS HAD BEEN AGREED WITH THE MTRC AFTER EXTENSIVE CONSULTATION AND DISCUSSION, SIR JOHN SAID.

DEBATE ON THE MOTION WAS ADJOURNED UNTIL NOVEMBER 9 OR 10.

MTR LOAN GUARANTEED

***

THE LEGISLATIVE COUNCIL TODAY APPROVED A GOVERNMENT GUARANTEE TO THE MASS TRANSIT RAILWAY CORPORATION TO COVER THE PAYMENT OF A $100 MILLION LOAN.

THE SUM BORROWED UNDER THIS GUARANTEE WILL BE USED TO FINANCE THE ISLAND LINE CONTRACTS FOR THE SUPPLY, INSTALLATION AND COMMISSIONING OF DUAL MODE LOCOMOTIVES, ADDITIONAL ROLLING STOCK, AN ENVIRONMENTAL CONTROL SYSTEM, CHILLERS, STATION AND TUNNEL ANCILLIARIES AND DEPOT SERVICES.

THIS BRINGS THE GOVERNMENT'S TOTAL GUARANTEE COMMITMENT IN RESPECT OF THE OUTSTANDING LOANS AVAILABLE TO THE MTR CORPORATION TO $10 738 MILLION.

FOUR BILLS INTRODUCED

* X *

THE EMPLOYMENT (AMENDMENT) BILL 1983 WAS PASSED IN THE LEGISLATIVE COUNCIL TODAY.

THE FOLLOWING FOUR BILLS WERE INTRODUCED AND READ A SECOND TIME THE MASS TRANSIT RAILWAY CORPORATION (AMENDMENT) BILL 1983, THE PENSIONS (INCREASE) (AMENDMENT) BILL 1983, THE BUILDINGS (AMENDMENT) (NO. 2) BILL 1983, AND THE MASS TRANSIT RAILWAY (LAND RESUMPTION AND RELATED PROVISIONS) (AMENDMENT) BILL 1983.

DEBATE ON THESE BILLS WAS ADJOURNED TILL NOVEMBER 9 OR 10.