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Official Record of Proceedings HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 2865 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 21 April 1993 The Council met at half-past Two o'clock PRESENT THE PRESIDENT THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., LL.D., Q.C., J.P. THE CHIEF SECRETARY THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. THE FINANCIAL SECRETARY THE HONOURABLE YEUNG KAI-YIN, C.B.E., J.P. THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P. 2866 HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG REV THE HONOURABLE FUNG CHI-WOOD THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE GILBERT LEUNG KAM-HO THE HONOURABLE ERIC LI KA-CHEUNG, J.P. HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 2867 THE HONOURABLE FRED LI WAH-MING THE HONOURABLE MAN SAI-CHEONG THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE ROGER LUK KOON-HOO THE HONOURABLE ANNA WU HUNG-YUK ABSENT THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI IN ATTENDANCE MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P. SECRETARY FOR TRANSPORT THE HONOURABLE JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY 2868 HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE MR ANTHONY GORDON EASON, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MR MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR FINANCIAL SERVICES MRS ELIZABETH MARGARET BOSHER, J.P. SECRETARY FOR ECONOMIC SERVICES MR LEUNG CHIN-MAN, J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS THE CLERK TO THE LEGISLATIVE COUNCIL MR CLETUS LAU KWOK-HONG THE DEPUTY CLERK TO THE LEGISLATIVE COUNCIL MR PATRICK CHAN NIM-TAK HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 2869 Papers The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Public Health and Municipal Services (Public Pleasure Grounds) (Amendment of Fourth Schedule) (No. 2) Order 1993 .............................................................. 98/93 Rules of the Supreme Court (Amendment) Rules 1993............................... 99/93 Food Business (Regional Council) Bylaws (Exemption From Bylaw 31 (1)) Notice 1993...................................... 100/93 Food Business (Urban Council) Bylaws (Exemption From Bylaw 32(1)) Notice 1993 .......................................................... 101/93 Television (Amendment) Ordinance 1993 (22 of 1993) (Commencement) Notice 1993................................................... 102/93 Building (Administration) (Amendment) Regulation 1993 ................................................................................... 103/93 Building (Oil Storage Installations) (Amendment) (No. 2) Regulation 1993....................................................................... 104/93 Antiquities and Monuments (Declaration of Monument) Notice 1993....................................................................... 105/93 Employees Retraining Ordinance (Amendment of Schedule 2) (No. 2) Notice 1993.......................................................... 106/93 Travel Agents (Amendment of Schedule) Notice 1993 ............................... 107/93 Commissioner for Administrative Complaints Ordinance (Amendment of Schedule 1) Order 1993 (L.N. 97 of 1993) Corrigendum................................................... 108/93 Public Health and Municipal Services (Public Markets) (Designation and Amendment of Tenth Schedule) (No. 2) Order 1993 .............................................................. 109/93 2870 HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 Declaration of Markets in the Regional Council Area (Amendment) Declaration 1993 ........................................................... 110/93 Sessional Papers 1992-93 No. 69 — Mass Transit Railway Corporation Annual Report 1992 No. 70 — Kowloon-Canton Railway Corporation Annual Report 1992 No. 71 — Hospital Authority Annual Report 1991-1992 No. 72 — Report on the Samaritan Fund and Statements of Accounts of the Samaritan Fund 1991-1992 with Certificate of the Director of Audit Affirmation Mr YEUNG Kai-yin made the Legislative Council Affirmation. Addresses Mass Transit Railway Corporation Annual Report 1992 FINANCIAL SECRETARY: Mr President, in accordance with section 16(4) of the Mass Transit Railway Corporation (MTRC) Ordinance, I table the Annual Report and Accounts of the Mass Transit Railway Corporation for the year ending 31 December 1992. In 1992, the MTRC carried about 751 million passengers, 3.4% higher than 1991. Total revenue amounted to $3.99 billion, 12% higher than 1991. Total operating costs increased by 15% to $1.69 billion, mainly due to rising wages and railway maintenance costs. Interest and finance charges amounted to $1.31 billion, 10% less than 1991. For the second consecutive year, the MTRC registered a net profit even without any contribution from property developments. The total net profit for the year was $403 million, compared with $67 million in 1991. This firmly places the Corporation on its way to eliminate accumulated losses, now reduced to $3.06 billion. At the end of 1992, the Corporation's loans and finance liabilities stood at $18.4 billion. The year-end debt to equity ratio was 2.3 to 1. The MTRC is widely respected in the international financial community. The high credit HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 2871 ratings enjoyed by the Corporation demonstrate confidence in the financial strength of the Corporation and its future plans. The Corporation's results in 1992 are consistent with its long-term financial targets. Without an extension of the existing system, the Corporation expects to be able to retire all debts on existing loans by around the turn of the century. Over the next five years, the MTRC has budgeted to spend $5 billion on major capital projects to upgrade the existing system through the provision of new facilities and application of modern technology. The Corporation is planning to improve the morning peak train service on the Tsuen Wan Line from the existing 30 train trips per hour to 31 some time this year, 32 in 1994 and 34 in 1996. Looking ahead, I am encouraged by the Corporation's commitment to enhancing the safety, efficiency and reliability of its services. The Corporation has made long-term plans to improve its service and to increase cost- effectiveness and customer satisfaction. I also welcome the Corporation's regular publication of its performance targets and achievements. Once agreement is reached with the Chinese side regarding the financing of the Airport Railway, and Finance Committee approval is obtained, the Corporation will be able to proceed with a project that affords much needed relief to the existing system and support for the new airport. All this will bring long-term benefits to Hong Kong. Finally, I would like to thank the Chairman, the Board, and all staff of the MTRC for continuing to maintain high standards and achieve efficiency during the past year. Kowloon-Canton Railway Corporation Annual Report 1992 FINANCIAL SECRETARY: Mr President, in accordance with section 14(5) of the Kowloon-Canton Railway Corporation ordinance, I table the annual report and accounts of the Kowloon-Canton Railway Corporation (KCRC) for the year ending 31 December 1992. The Corporation continued to maintain a strong financial position in 1992. Operating revenue stood at $2.15 billion, an increase of 16.3% over 1991. Including income from property development, the net profit for the year was $526 million, 17% higher than 1991. A dividend of $150 million was paid to the Government after considering the Corporation's long-term cash flow requirements and investment needs. The dividend has had no effect on this year's fare revision. The fact that the Corporation has been able to pay a dividend to the Government reflects the confidence we have in the Corporation's financial strength. I would like to remind Members here that for a railway to be not just financially self-sufficient, but able to provide a modest return to its investor is rare in the world today, and is a tribute to the 2872 HONG KONG LEGISLATIVE COUNCIL — 21 April 1993 management of the Corporation.
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