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increase application in 1982, the Governor in Council agreed in principle to waive the royalty element in the permit fee. Instead of seeking the approval of this Council every year to deduct a certain amount from the permit fee to offset royalty, it is proposed that a new system should be introduced to charge the Company a commercial rent for using Government land to operate the tramway for 20 years. Accordingly, clause 2 of the Bill gives the Company a right to operate the tramway for 20 years with effect from 1 January 1984, subject to the provisions of the Peak Tramway Ordinance and the payment of a premium of $2.6 million.

The opportunity is taken to update various obsolete parts of the Ordinance. The only significant amendment here is the deletion of the provision of section 11(1) relating to the power of Governor in Council to purchase the Company after expiration of 28 years from the time when the Company was empowered to construct the tramway and every 7 years thereafter. Such a provision is incompatible with the proposed 20-year right to use Government land for running the

Tramway.

The above package of measures serves to reflect the present status of the Peak Tram as a recreational facility and it streamlines the administrative arrangement for the Peak Tram to continue its operation as a commercial undertaking.

Sir, I beg to move.