XN000022-1993-07-21 — Page 10

WEDNESDAY, JULY 21, 1993

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LEGCO TO BE INFORMED OF WHC FRANCHISEE'S PERFORMANCE

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THE LEGISLATIVE COUNCIL WILL BE KEPT INFORMED OF PERFORMANCE OF THE WESTERN HARBOUR CROSSING FRANCHISEE AT IMPORTANT MILESTONES DURING THE FRANCHISEE'S FINANCIAL YEAR.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, MR K Y YEUNG AT THE RESUMED DEBATE ON THE WESTERN HARBOUR CROSSING BILL IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR YEUNG UNDERTOOK TO TABLE IN THE LEGISLATIVE COUNCIL IN JULY EACH YEAR THE FRANCHISEE'S THREE YEAR ROLLING PROJECTION OF OPERATIONAL COSTS AND NET REVENUE AND THEIR ANNUAL OPERATING COST BUDGET, AND TO MAKE A STATEMENT.

HE WILL TABLE IN OCTOBER THE ACTUAL NET REVENUE FIGURES OF FRANCHISEE FOR THE YEAR JUST ENDED, AND MAKE A STATEMENT ON BOTH FIGURES AND ANY APPLICATION FOR A TOLL INCREASE.

MR YEUNG SAID HE WOULD BRIEF THE TRANSPORT PANEL ON FINDINGS, ASSESSMENTS AND CONCLUSIONS BEFORE DECIDING BY OCTOBER WHETHER ANY TOLL INCREASE SHOULD BE AGREED OR WHETHER IT SHOULD REFERRED FOR ARBITRATION.

THE

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IT WOULD BE OPEN TO LEGCO MEMBERS TO DECIDE WHETHER OR NOT HIS FINDINGS, ASSESSMENTS AND CONCLUSIONS SHOULD BE DEBATED.

IT IS AGAINST THIS BACKGROUND THAT MR YEUNG DISAGREED THAT THE WHO'S TOLL ADJUSTMENT MECHANISM WOULD DEPRIEVE THE LEGISLATIVE COUNCIL OF THE RIGHT TO MONITOR THE PERFORMANCE OF THE FRANCHISEE.

MR YEUNG SAID THE PURPOSE OF HAVING THE TOLL ADJUSTMENT MECHANISM WAS THAT IT REPLACED THE PRESENT VAGUE REFERENCE IN EXISTING TUNNEL FRANCHISES ABOUT THE RIGHT TO RECEIVE A REASONABLE RETURN ON

INVESTMENT, WITH A CLEAR, UNMISTAKABLE FRAMEWORK IN WHICH

REASONABLENESS WAS QUANTIFIED.

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ON THE POSSIBLE CONSEQUENCES OF A WITHDRAWAL BY THE CONSORTIUM, MR YEUNG SAID THE IMMEDIATE CONSEQUENCE WAS THAT THE PROJECT WOULD PUT AT RISK AND WOULD CERTAINLY NOT BE READY WHEN IT WAS NEEDED.

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MR YEUNG SAID: "IF THE GOVERNMENT DECIDES THAT RE-TENDERING UNLIKELY TO ATTRACT GOOD BIDS, OR IF IT ACTUALLY FAILED ON RENDERING TO ATTRACT GOOD BIDS, THE PROJECT MIGHT WELL HAVE TO BE FINANCED FROM PUBLIC FUNDS.

"IF THIS WERE ΤΟ HAPPEN, UNDER OUR EXISTING SYSTEM FOR BUDGETARY CONTROL WE WOULD HAVE TO DEFER OR CANCEL AT LEAST $6 BILLION WORTH OF PUBLIC WORKS THAT ARE ALREADY IN THE PUBLIC WORKS PROGRAMME,

"THESE WOULD BE PROJECTS WHICH CANNOT OR CANNOT PRIVATISED, INCLUDING SCHOOLS, CLINICS, HOSPITALS, IMPROVEMENT SCHEMES, UNTOLLABLE HIGHWAYS, AND SO ON.

BUT THAT IS ONLY THE TIP OF THE ICEBERG.

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SEWERAGE

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