XN000022-1988-03-09 — Page 13

11

WEDNESDAY, MARCH 9, 1988

"THE PROPOSED NEW RENTAL TARIFF,

WHICH REPRESENTS A MONTHLY CHARGE OF $200, WOULD GIVE THE COMPANY A REASONABLE RETURN ON ITS COSTS OTHER THAN WITH RESPECT TO THE USE OF THE NETWORK, WHICH WOULD BE ACCOUNTED FOR BY THE PROPOSED REVENUE-SHARING ARRANGEMENT, HE SAID.

THESE PROPOSALS WERE EXPECTED TO YIELD ADDITIONAL REVENUE OF APPROXIMATELY $10 MILLION OVER THE NEXT TWO YEARS.

HOWEVER, THE COMPANY HAD UNDERTAKEN TO USE THIS EXTRA REVENUE TO HELP FUND LESS PROFITABLE BUT SOCIALLY DESIRABLE PUBLIC SERVICES SUCH AS PUBLIC PAYPHONES IN LOW USAGE AREAS AND EMERGENCY HELPLINES.

MR NENDICK NOTED THAT REVENUE FROM PRIVATE PAYPHONE RENTAL WAS COVERED BY THE SCHEME OF CONTROL.

"WHILST SOME CURRENT PRIVATE PAYPHONE RENTERS WOULD HAVE THEIR REVENUE FROM PRIVATE PAYPHONES REDUCED AS A RESULT OF THESE PROPOSALS, MOST PRIVATE PAYPHONE RENTERS WOULD NEVERTHELESS CONTINUE TO MAKK AN ATTRACTIVE NET RETURN AND THOSE WITH PRIVATE PAYPHONES SITES WOULD HAVE AN IMPROVED RETURN, HE SAID.

"THERE ARE CURRENTLY ABOUT 900 PRIVATE THE CALL CHARGE FOR THESE PAYPHONES WILL REMAIN 91 PER CALL AS AT PRESENT.'

IN LOW USAOR

PAYPHONES IN SERVICE.

UNCHANGED, THAT IS,

TO THE SCHEDULE OF

MR NENDICK EXPLAINED THAT ALL AMENDMENTS CHARGES OF THE TELEPHONE ORDINANCE REQUIRED A RESOLUTION OF THE LEGISLATIVE COUNCIL AND HE ADDED THAT THE PROPOSED NEW CHARGING ARRANGEMENTS HAD BEEN EXAMINED BY THE ADMINISTRATION AND WERE CONSIDERED EQUITABLE.

THE MOTION WAS APPROVED.

MOTION ON TENEMENT RATEARLE VALUE APPROVED

* * * * *

THE LEGISLATIVE COUNCIL TODAY

(WEDNESDAY}

APPROVED

A MOTION VALUE OF

UNDER THE RATING ORDINANCE TO INCREASE THE MINIMUM RATEABLE TENEMENTS FROM $1,000 TO $1,200, FROM APRIL 1 THIS YEAR.

MOVING THE MOTION, THE

THE HON ORDINANCE AN AMOUNT EXEMPT FROM

ACTING FINANCIAL SECRETARY, DAVID NENDICK, SAID THAT UNDER THE RELEVANT SECTION OF THE ANY TENEMENT THE RATEABLE VALUE OF WHICH PRESCRIBED BY ASSESSMENT TO RATES.

LEGISLATIVE A

DID NOT EXCEED COUNCIL RESOLUTION WAS

/THE PURPOSE