XN000022-1986-07-30 — Page 44

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WEDNESDAY, JULY 30, 1986

+AS MY PREDECESSOR STATED IN THIS COUNCIL WHEN HE INTRODUCED THE BILL ON DECEMBER 4 LAST, THE PACKAGE OF MEASURES CONTAINED IN THE BILL SERVES TO REFLECT THE STATUS OF THE PEAK TRAM AS A RECREATIONAL FACILITY AND TO STREAMLINE THE ADMINISTRATIVE ARRANGEMENTS FOR IT TO CONTINUE TO OPERATE AS A COMMERCIAL UNDERTAKING.

+RESUMPTION OF THE SECOND READING DEBATE WAS DEFERRED PENDING THE CONCLUSION OF DISCUSSIONS WITH THE PEAK TRAMWAY COMPANY ON THE PROVISION OF A FIRM COMMITMENT BY THE LATTER TO MODERNISE THE TRAMWAY IN RETURN FOR THE RIGHT TO OPERATE IT FOR 20 YEARS.

+THESE DISCUSSIONS HAVE NOW BEEN CONCLUDED SATISFACTORILY WITH THE PROPOSED GRANT OF A 20-YEAR RIGHT TO BE MADE IN TWO STAGES,+ MR GREWAL SAID.

HE SAID THE AMENDMENT MOVED TO CLAUSE 2 OF THE BILL GAVE EFFECT TO THIS APPROACH.

UNDER THE REVISED APPROACH. THE PEAK TRAM COMPANY WOULD BE GRANTED THE RIGHT TO OPERATE THE TRAMWAY FOR A PERIOD OF 10 YEARS WITH EFFECT FROM JANUARY 1, 1984 UPON THE PAYMENT TO GOVERNMENT OF A NON-REFUNDABLE PREMIUM OF $2.79 MILLION WITHIN 14 DAYS OF THE COMMENCEMENT OF THE ORDINANCE, MR GREWAL SAID.

THE PREMIUM COMPRISES A SUM OF $2.6 MILLION EARLIER AGREED UPON FOR A 20-YEAR RIGHT TO OPERATE THE TRAMWAY AND A FURTHER SUM OF $190 000 BEING INTEREST WHICH HAD ACCRUED SINCE THE INTRODUCTION OF THE BILL INTO THE COUNCIL IN DECEMBER 1985, HE ADDED.

THE SECRETARY FOR TRANSPORT WOULD BE EMPOWERED TO GRANT

A FURTHER PERIOD OF 10 YEARS UPON THE COMPANY SATISFYING HIM WITHIN TWO YEARS OF THE DATE OF COMMENCEMENT OF THE AMENDING ORDINANCE OF ITS COMMITMENT TO CARRY OUT APPROVED WORKS FOR THE MODERNISATION AND IMPROVEMENT OF THE TRAMWAY AND ANCILLARY EQUIPMENT.

NO FURTHER PREMIUM WOULD BE PAYABLE IN RESPECT OF THIS SECOND 10-YEAR PERIOD, HE ADDED.

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