XN000022-1992-03-11 — Page 7

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WEDNESDAY, MARCH 11, 1992

+

PERSON

"A

PROPOSING TO BECOME A CONTROLLER

IN HONG KONG NOW HAS TO INSTITUTION INCORPORATED CONSENT OF THE COMMISSIONER OF BANKING, HE ADDED.

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OF

AN

OBTAIN THE

AUTHORISED

PRIOR

MR MACLEOD SAID LEGISLATION HAD ALSO BEEN AMENDED TO FACILITATE

OF THE EXCHANGE

INFORMATION BETWEEN

BOTH

AND REGULATORS,

LOCAL OVERSEAS, AND THE REPORTING OF FRAUD TO THE COMMISSIONER OF BANKING BY AUDITORS.

A BANKING AMENDMENT BILL WAS BEING DRAFTED ΤΟ PROVIDE THE LEGAL FRAMEWORK FOR EXTERNAL AUDITORS TO REPORT

ADDITION, IN

AND ADEQUACY CONTROL SYSTEM.

EFFECTIVENESS OF AUTHORISED

INSTITUTIONS'

ON THE INTERNAL

MATTERS

"WHILE WE ARE NOT COMPLACENT AND WILL CONTINUE TO KEEP UNDER REVIEW, WE BELIEVE WE HAVE A SOUND AND ADEQUATELY SUPERVISED OTHER CENTRES SYSTEM WHICH COMPARES FAVOURABLY WITH THAT IN BANKING AROUND THE WORLD, HE ADDED.

"

NO GUARANTEE ON KCRC'S TARGET RATE OF RETURN

KOWLOON-CANTON

CORPORATION'S (KCRC) RAILWAY

TARGET RATE

OF NOT A

WITHOUT

RETURN OF 12 PER CENT TO 15 PER CENT ON NET FIXED ASSETS IS PERMITTED OR GUARANTEED RETURN, BUT ONE OF THE INTERNAL GUIDELINES FOR

ΤΟ THE KCRC

OPERATE ON PRUDENT COMMERCIAL PRINCIPLES GOVERNMENT SUBSIDY.

MR TRANSPORT,

MICHAEL

THIS WAS STATED BY THE SECRETARY FOR LEUNG, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

WING-TAT, MR IN A WRITTEN REPLY TO A QUESTION BY THE HON LEE

EIGHT LEUNG SAID LAST YEAR KORC'S RATE OF RETURN ON FIXED ASSETS WAS

CENT AFTER PROPERTY PER CENT BEFORE PROPERTY INCOME AND NINE PER INCOME.

"THE KCRC EXPECTS THAT EXCLUDING PROPERTY INCOME, THE RETURN ON CENT PER ITS NET FIXED ASSETS WILL ONLY BE AROUND SIX TO SEVEN PER ANNUM IN THE NEXT FIVE YEARS, HE SAID.

TI

MR LEUNG EXPLAINED THAT THE INTERNAL GUIDELINES WERE ADOPTED AS BETWEEN THE CORPORATION'S CORPORATE INTENT, FOLLOWING AGREEMENT GOVERNMENT AND THE KCRC IN LATE 1990.

THE

IT

MR LEUNG SAID THE 12 PER CENT TO 15 PER CENT RATE OF RETURN WAS

DEFINITIVE. A LONG-TERM TARGET WHICH WAS INDICATIVE RATHER THAN WAS NOT TO BE USED AS THE SOLE INDICATOR TO EVALUATE PERFORMANCE.

WILL ENSURE THAT WILL BUILD UP SUFFICIENT RESERVES OVER TIME MAJOR DEVELOPMENT PROJECTS WITHOUT RECOURSE TO THE TAXPAYER,

"SPECIFICALLY, A RATE OF RETURN

CORPORATION

THE

TO

THE FINANCE HI HE SAID.

GUIDANCE WITHIN NOT BEEN

"AS THE GUIDELINES ARE INTENDED FOR INTERNAL KCRC AND INVOLVE COMMERCIAL CONFIDENTIALLY, THEY HAVE PUBLICISED," HE SAID.

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