XN000022-1995-07-19 — Page 43

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Business Plan

Members would like the business plans of the Airport Authority to be tabled in this Council. We have some difficulty with this suggestion. As the Authority moves into the operational phase, its business plan will contain more sensitive information. The public disclosure of sensitive information may handicap the Authority's dealings or negotiations with its commercial counterparts. Nevertheless, in recognition of Members' interest in the on-going workings of the Authority, I shall ask the Provisional Airport Authority and, in future the Airport Authority, to brief this Council on major expansion plans, commercial ventures and business outlooks.

Airport charges

The Honourable Howard Young has commented on the strongly held concerns on behalf of airlines about the future charging policy of the Authority and related consultation arrangements.

Mr President, as Mr Young knows I am alive to the background to the concerns expressed. The Administration will of course ensure that the airport charges of the Authority will not be in breach of international obligations applicable to Hong Kong. We will ensure the Airport Authority consult airlines before setting airport charges in accordance with our international obligations.

As regards airlines' concerns regarding the future level of charges at the new airport, I would like to point out that whilst the Government will be seeking a reasonable return on its investment, Clause 5(1)(a) of the Bill provides. inter alias, that the Authority shall operate the new airport with the objective of maintaining Hong Kong's status as a centre of international and regional aviation. I have no doubt therefore that, in setting future airport charges, the Authority will have due regard to maintaining the competitiveness of our new airport. As regards single till. multiple till, I would suggest that this best be left to discussions between the Administration. the Authority and the airlines because many different views are held by different parties and there is yet no agreed position.