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Louis Won

THE Government will not be obliged to use money in a toll stability fund for the Route 3 highway to defer toll increases.

  Yesterday's Legislative Council bills' committee meeting was scrutinising the proposed franchise for the dual three-lane highway connecting Au Tau to Ting Kau Bridge.

   Deputy Secretary for Transport Arthur Ng Sek-hon said the government-appointed management committee of the toll stability fund would have discretionary power over the use of the monies.

  According to the proposed conditions of the $7.25 billion franchise, money for the fund will come from the difference between the actual net revenue and the maximum estimated net revenue in any year.

   The Government can use the money to defer toll increases requested by the consortium which will build the highway.

  The proposed franchise entitles the consortium - led by Sun Hung Kai - to have three toll increases over the 30-year franchise period.

    Democratic Party legislator Zachary Wong Wai-yin asked why the proposed franchise failed to make it mandatory for the fund to be used to defer any toll increase.

  Mr Ng said the management committee would have to decide whether to use the fund to defer a particular toll increase on the basis of the prevailing circumstances.

  'Factors such as the amount of money in the fund and the amount of payment required to defer the toll increases need to be taken into account,' he said.

  The committee could not always use money from the fund to defer a rise in the cost of using the tollway because this would be tantamount to guaranteeing the level of revenue of the franchisee, who then would not have to bear the risk of decreased traffic if tolls rose.

  Secretary for Transport Haider Barma said the Government's intention was to use the fund as much as possible to defer toll increases.

  He admitted Legco did not have a say on whether the fund should be used to defer a particular toll increase.

  However, Mr Barma said if the management committee decided that the fund should not be used to defer a particular toll increase, the Government would provide explanations for such a decision to the Legislative Council.

  But Mr Wong said legislators could do nothing if they did not accept the Government's explanations.

  Yesterday's meeting also concluded the scrutiny of the proposed franchise, and the bill will be scheduled for second and third readings on May 24.



Money in fund may not stop toll increase