XN000022-1987-01-07 — Page 30

WEDNESDAY, JANUARY 7, 1987

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TRUST FUND PROPOSED FOR SPORTS CENTRE

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THE GOVERNMENT WILL ESTABLISH A STATUTORY TRUST FUND TO MEET THE RECURRENT AND NON-RECURRENT EXPENSES OF THE JUBILEE SPORTS CENTRE, THE SECRETARY FOR DISTRICT ADMINISTRATION, THE HON DONALD LIAO, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

INTRODUCING THE JUBILEE SPORTS CENTRE (AMENDMENT) BILL 1986, MR LIAO SAID THE BASIC OBJECTIVE WAS TO PROVIDE FOR THE DISENGAGEMENT OF THE ROYAL HONG KONG JOCKEY CLUB FROM THE CENTRE.

+IT HAS BEEN PROPOSED BY THE JOCKEY CLUB THAT THE CENTRE SHOULD BE GIVEN AN ENDOWMENT OF $350 MILLION,+ HE SAID.

+THIS WOULD BE USED TO ESTABLISH A TRUST FUND AND WOULD MEET THE CLUB'S PRESENT OBLIGATION TO COVER THE RECURRENT OPERATING COSTS AND EXPENSES OF THE CENTRE, AND WOULD ALSO CATER FOR AN ELEMENT OF CAPITAL REPLACEMENT AND IMPROVEMENT FOR THE NEXT 20 YEARS.

THE BILL AMENDS THE JSC ORDINANCE BY REMOVING THE NEED FOR CONSULTATION WITH THE JOCKEY CLUB IN RESPECT OF THE APPOINTMENT OF MEMBERS TO THE JUBILEE SPORTS CENTRE BOARD BY THE GOVERNOR AND REMOVES THE MAXIMUM LIMIT ON THE NUMBER OF MEMBERS WHO CAN DE APPOINTED TO THE BOARD.+

+ IT EXPRESSLY PROVIDES FOR THE FINANCIAL SECRETARY OR HIS REPRESENTATIVE TO BE A MEMBER OF THE BOARD, IN VIEW OF THE BOARD'S INCREASED RESPONSIBILITIES ARISING FROM THE CREATION OF A TRUST FUND AND THE REQUIREMENT FOR ADDITIONAL EXPERTISE ON FINANCE AND INVESTMENT MATTERS, HE ADDED.

THE TRUST FUND ESTABLISHED BY THE BILL WOULD BE VESTED IN

A COMMITTEE OF TRUSTEES TO BE APPOINTED BY THE BOARD.

+THE COMMITTEE OF TRUSTEES WILL BE EMPOWERED TO MAKE INVESTMENTS AS PROVIDED FOR IN THE TRUSTEE ORDINANCE, BUT THE JSC TRUST FUND, WHICH IS A CHARITABLE TRUST, MAY NOT BE PLEDGED AS A SECURITY FOR ANY LOAN WHICH THE COMMITTEE OR BOARD MAY SEEK TO RAISE,+ MR LIAO SAID.

HE SAID IT WAS INTENDED THAT THE AMENDMENTS WOULD TAKE EFFECT WHEN THE TRUST FUND WAS BROUGHT INTO OPERATION BY THE FORMAL HANDOVER OF THE JOCKEY CLUB DONATION OF $350 MILLION.

DEBATE ON THE BILL WAS ADJOURNED.

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