C.S. 166
CONFIDENTIAL ##
機密
XCC(75)6
3
6
The powers of the Corporation are set out in clauses 6 to 8. Clause 6(1) empowers the Corporation generally to do whatever is necessary to achieve its purposes, while clause 6(2) mentions certain specific powers. In addition, clause 6(3) widens the Corporation's powers in clause 6(2)(b) by enabling it to develop property for purposes other than those associated with the Railway. Thus the Corporation would be able, if it so wished, to develop to the full any land granted to it (e.g. by building a commercial/residential block on top of a station site). Accordingly, the consideration to be given by the Cor- poration in exchange for land granted to it will take account of the type of development permitted by the terms of the lease.
7
Clause 7(1) provides for the appointment by the Governor of the Chairman and for the Governor also to determine his terms and conditions of service. By comparison, clause 7(2) vests in the Governor a power of control over the appointment, suspension or dismissal of the Managing Director. This power is considered necessary to ensure that the Governor could, if necessary, intervene in the relationship between the two most senior officers of the Corporation. The remaining sub-clauses 7 are fairly standard enabling provisions, as are the provisions of clause 8.
The Government's relationship with the Corporation
8
The need to ensure that the Government can exert and maintain a greater degree of control over the Mass Transit Railway Corporation than over other public utilities has been discussed in some detail in previous submissions, but it is perhaps appropriate to summarise these reasons again. Basically, they are that:
(a)
(b)
because a significant element of equity capital needs
to be injected in the earlier years of the System entirely from public funds, the Government will initially be the only shareholder. Even if, at a later stage, the private sector were to be invited to participate in the Corporation's equity, the Govern- ment would still remain the majority shareholder; and
the Mass Transit Railway will be at the core of the Government's overall transport policy in the 1980's.
9
Control as shareholder. As Honourable Members are aware steps have already been taken to set aside $800 million in the Mass Transit Fund which the Corporation would draw down in exchange for its equity. Thus clauses 10(3) and 10(4) provide for the allocation of
CONFIDENTIAL
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