XN000022-1995-05-24 — Page 38

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Localisation

Some commentators suggested that given the importance of the Authority, it should adopt a localisation policy for employment of staff and that the Chairman and, if possible, the Chief Executive Officer should be "locals". Others specifically suggested that the Chairman should be a Hong Kong permanent resident. Clause 3(3)(a) of the Bill now provides that the Chairman shall be a Hong Kong permanent resident as defined in the Immigration Ordinance. As regards employment of staff, the Authority's plan is to fill all senior posts, including that for the Chief Executive Officer, with Hong Kong permanent residents and the Authority will recruit from sources outside Hong Kong only in the absence of suitable local candidates.

Powers and functions

On the powers and functions of the Authority, comments we have received focussed mainly on the scope of activities and powers of the Authority relating to charging of land and property, borrowing and delegation of functions. Some felt that the powers of the Authority in the White Bill were too wide. Others were concerned that in the unlikely event that the Authority fails to repay its debt or exercises its power to charge or to delegate in a wrong manner, it may inadvertently lose control of the airport.

As regards the activities of the Authority, in addition to providing, developing, operating and maintaining the airport, Clauses 5(2) and (3) and 7(2)(f) of the Bill now provide that the Authority may only engage in "airport-related" activities. By this term, we mean that the Authority should only undertake activities which are essential or conducive to the efficient operation of the airport or which are related to the development and running of an airport e.g. the development of hotels, freight forwarding facilities, offices, or other commercial and retail premises. We do not envisage that the Authority will undertake activities which are not normally undertaken by airports in other territories.

Turning now to the charging and disposal of land and buildings by the Authority, the Land Grant referred to Clause 16 of the Bill will specifically prohibit the Authority from disposing of land and buildings required for the operation of the airport or charging them in such a way which would jeopardize the operation of the airport. Clause 16(1) of the Bill further provides that the restrictions over charging and disposal of land and buildings in the Land Grant cannot be changed except with the prior approval of the Financial Secretary.