XN000022-1996-10-16 — Page 11

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Reply:

Mr President,

In December 1995, the Director of Lands proposed to Hongkong and Yaumati Ferry Company Ltd (HYF) the basic terms and conditions (including the land premium) for commercial development above Piers No. 4 to 7 at Central Reclamation. Upon receipt of HYF's written response on some of the basic terms and conditions in March 1996, the Director of Lands initiated negotiations with HYF, which are continuing. As regards the issue of land premium, he received a written response from HYF in late September 1996. He is now considering the response and will further discuss the issue with HYF.

The Director of Lands has not set a deadline for the negotiations, but he hopes to conclude the negotiations successfully as soon as possible.

Although the basic terms and conditions have not been agreed, HYF has already honoured part of its pledge and implemented some of the ferry service improvement items required under the development package. These include-

(i)

(ii)

the purchase of one catamaran in 1994, enabling additional sailings between Tuen Mun and Central since February 1995;

(iii)

the addition of a double-deck pontoon at Tsing Yi Pier since 1995, facilitating boarding and alighting;

the improvements of the ticket office and queuing facilities at Tsing Yi Pier; and

(iv)

the installation of anti-pollution devices on vessels to reduce air pollution.

As negotiations are under way, it would not be helpful or appropriate to speculate on the outcome of the negotiations. However, it is the Government's objective to ensure the provision of a proper and efficient ferry service for the travelling public.

End