XN000022-1993-06-30 — Page 36

WEDNESDAY, JUNE 30, 1993

"IN ADDITION THERE IS ANNUAL SPECIAL PUBLIC HOUSING QUOTA FOR REFERRALS FROM THE SOCIAL WELFARE DEPARTMENT ON COMPASSIONATE GROUNDS AND HOMES FOR THE AGED AS WELL AS TEMPORARY URBAN HOSTELS FOR THE ELDERLY AND SINGLETON HOSTELS ESTABLISHED BY THE GOVERNMENT FOR OTHER SINGLE TENANTS IN NEED OF SUCH ACCOMMODATION, HE SAID.

THERE IS CLEARLY ADEQUATE CAPACITY TO DEAL WITH ANY CASES OF REAL HARDSHIP BROUGHT ABOUT BY RENT DECONTROL, HE ADDED.

WESTERN HARBOUR CROSSING FRANCHISE "AN EXCELLENT DEAL"

THE

SECRETARY FOR TRANSPORT; MR K Y YEUNG, TODAY LEGISLATIVE COUNCIL THAT THE GOVERNMENT HAD STRUCK AN "EXCELLENT DEAL"

TOLD THE ON THE FRANCHISE FOR THE WESTERN HARBOUR CROSSING.

SAID.

IT WAS "GOOD FOR HONG KONG AND FAIR TO ALL PARTIES", MR

YEUNG

BILL

MOVING THE SECOND READING OF THE WESTERN HARBOUR CROSSING IN THE LEGISLATIVE COUNCIL, MR YEUNG SAID THE GOVERNMENT HAD MET THE

"ALL NECESSARY PUBLIC INTEREST OBJECTIVES" WHILE ALSO POSSIBLE TO FINANCE THE PROJECT ENTIRELY IN THE PRIVATE SECTOR,

MAKING IT

FRANCHISE

MR YEUNG SAID: "I BELIEVE WE HAVE NEGOTIATED A AGREEMENT THAT IS GOOD FOR HONG KONG AND FAIR TO ALL PARTIES. FROM THE TUNNEL USERS' VIEWPOINT, TUNNEL TOLLS WILL BE CAPPED FOR THE FIRST TIME EVER, AND SURPLUS REVENUES WILL BE PUT BACK INTO THE PROJECT то DEFER TOLL INCREASES, THUS ENSURING TOLL STABILITY.

THE BILL PROVIDES THE FRANCHISEE WITH THE DEGREE OF CERTAINTY HE, HIS BANKERS, AND HIS SHAREHOLDERS NEED FOR BACKING SUCH A INVESTMENT.

MASSIVE

THE FRANCHISEE WILL PROVIDE $6 BILLION WORTH OF ESSENTIAL TRANSPORT INFRASTRUCTURE AT NO COST TO THE PUBLIC PURSE, ALLOWING

THEREBY PUBLIC FUNDS TO BE SPENT INSTEAD ON OTHER VITAL WORKS, ** THE SECRETARY SAID.

$7.5

CERTAINTY WAS AN ESSENTIAL PREREQUISITE FOR SUCH A FORMIDABLE BILLION (INCLUDING FINANCING CHARGES) INVESTMENT.

THE PROPOSED FRANCHISEE AND HIS BANKERS HAD TO BE CERTAIN THAT THE TUNNEL WOULD PROVIDE SUFFICIENT REVENUE TO REPAY THE DEBTS AND TO PROVIDE A REASONABLE RETURN ON INVESTMENT, MR YEUNG SAID.

"THIS IS AN ESSENTIAL PREREQUISITE. WITHOUT SUCH CERTAINTY, THERE CAN BE NO FRANCHISE. IN THE NEGOTIATIONS, WE AGREED THAT THE PROPOSED FRANCHISEE BE GIVEN THE DEGREE OF CERTAINTY HE NEEDS; BUT THE SAME TIME WE HAVE SECURED ALL THE NECESSARY PUBLIC OBJECTIVES. I BELIEVE WE HAVE STRUCK AN EXCELLENT

AT

INTEREST

DEAL, SAID

MR

11

YEUNG.

/THE TERMS