XN000022-1990-03-09 — Page 3

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FRIDAY, MARCH 9, 1990

MR MACLEOD ALSO REFUTED THE NOTION THAT THE NEED FOR TIGHTER CONTROLS WAS MAINLY DUE TO THE PORT AND AIRPORT DEVELOPMENT STRATEGY,

HE POINTED OUT THAT ABOUT 40 PER CENT TO 60 PER CENT OF THE TOTAL COST OF $127 BILLION WOULD BE MET BY THE PRIVATE SECTOR, AND THAT EXPENDITURE WOULD BE SPREAD OVER A PERIOD OF TIME.

"BUT THE MOST IMPORTANT POINT ABOUT INFRASTRUCTURE IS THAT WE ARE TALKING BASICALLY OF CAPITAL EXPENDITURE, HE SAID.

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CONCERN то US

"BY ITS NATURE, CAPITAL EXPENDITURE IS OF LESS THAN RECURRENT EXPENDITURE IT HAS A LIMITED LIFE, CAN BE PHASED, AND TO AN EXTENT IS AN INVESTMENT IT PRODUCES IN

THE LONGER RUN NOT ONLY ECONOMIC BENEFITS BUT ALSO IN SOME CASES REVENUE

MOST NOTABLY ARISING FROM THE DEVELOPMENT MADE POSSIBLE BY THE RELEASE OF KAI TAK.

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" FURTHERMORE,

TOTAL ANNUAL CAPITAL EXPENDITURE IS CONSIDERABLY SMALLER THAN ANNUAL RECURRENT EXPENDITURE

CRUDELY SPEAKING, ABOUT $21 BILLION AS COMPARED WITH ABOUT $65 BILLION IN 1990-91, HE SAID.

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PROVISIONAL AIRPORT AUTHORITY FRAMEWORK PROPOSED

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A BILL WHICH PROVIDES FOR THE ESTABLISHMENT OF THE PROVISIONAL AIRPORT AUTHORITY (PAA) WAS GAZETTED TODAY (FRIDAY).

A GOVERNMENT SPOKESMAN SAID THAT IN ADDITION TO PROVIDING FOR THE FORMAL ESTABLISHMENT OF THE PAA THE BILL ALSO SETS OUT THE POWERS AND RESPONSIBILITIES OF THE PAA.

ESSENTIALLY, THE PAA'S PRINCIPAL FUNCTION WILL BE TO SPEARHEAD THE PREPARATORY WORK FOR THE ESTABLISHMENT OF THE NEW AIRPORT. TO DO THIS THE PAA WILL BE ABLE ΤΟ ENTER INTO CONTRACTS, ENGAGE STAFF, ACQUIRE ASSETS AND ACCEPT LIABILITIES.

"SINCE THE PAA WILL HAVE A LIMITED LIFE AND WILL BE REPLACED BY AN AIRPORT AUTHORITY (AA) IN DUE COURSE, THE PROPOSED LEGISLATION LEAVES MATTERS THAT WILL OBVIOUSLY BE OF NO CONCERN TO THE PAA, SUCH AS THE DAY TO DAY MANAGEMENT OF THE AIRPORT, FOR CONSIDERATION AND RESOLUTION WHEN PREPARING THE MORE COMPLEX LEGISLATION THAT WILL BE REQUIRED TO SET UP THE AA, THE SPOKESMAN SAID.

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HE POINTED OUT THAT DRAFT LEGISLATION FOR THE PAA GENERALLY FOLLOWED THE PRECEDENT USED TO ESTABLISH THE MASS TRANSIT RAILWAY CORPORATION (MTRC) WHERE A PROVISIONAL AUTHORITY WAS INITIALLY SET UP PRIOR TO THE ESTABLISHMENT OF THE PRESENT CORPORATION.

"LIKE THE MTRC, WE ENVISAGE THAT THE AA WILL, UPON ITS ESTABLISHMENT, TAKE OVER THE STAFF, ASSETS, LIABILITIES AND ON-GOING RESPONSIBILITIES OF THE PAA, HE SAID.

/ON THE