TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 333

G.S. 166

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and CMB may not operate save upon a specified route (s.11).

15.

This power is to alter, not as in section 24

to revoke, a specified route.

Statutory Powers

16.

Government is entitled by legislation to amend any Ordinance, even retrospectively, or to repeal or revoke previous Ordinances, with or without compensation, or similarly to alter existing rights under franchise or contract. But public opinion and the power of disallowance obviously in practice imposes limitations on such action.

Legal Alternatives Open to Government

17.

Assuming Government is not willing to accept. without more CMB assurances that it will fulfil its franchise obligations in the future, then the legal options are:

(a)

(b)

(c)

(a)

(a)

(£)

to enforce the assurances by negotiating a legally binding agreement containing financial or other sanctions;

to obtain by negotiation agreed amendments to the Ordinance and franchise (pursuant to section 5(4) which enacts that the franchise may only be amended "with the consent of the grantee") so as to provide effective sanctions;

to impose such amendments by legislation, which could be suitably drafted to provide for, or to prevent, the payment of compensation.

to negotiate or legislate for a greater degree of direct control over the management of CMB.

to grant another franchise to a further operator over either new or non-exclusive routes, or to revoke, after due process under section 24, the right to operate certain specified routes (no compensation is payable) and grant them to the new operator;

similarly, to commence due process to revoke the entire franchise under section 24, and concurrently to legislate to permit the use of CMB's property beyond the present one year limitation and/or to empower the Government or its nominee compulsorily to purchase such assets as they require upon a fair valuation;

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