Taxpayers will be protected if the Walt Disney Company fails to follow the timetable for repaying its $5.6 billion government loan, lawmakers were told yesterday.
A provision was clearly laid out in the Hong Kong Disneyland contract between the US entertainment company and the Government, Secretary for Treasury Denise Yue Chung-yee told a special House Committee.
'Under certain circumstances, we will need to turn the outstanding interest [on the government loan] into shares,' Ms Yue said.
But Commissioner for Tourism Mike Rowse was more cautious, saying he would prefer to supply a written answer.
'I feel that Ms Yue and I are tiptoeing along a tightrope in terms of commercial sensitivity,' he said.
'We have taken great care in the loan contract document to protect the government position.
'In addition, during the early years of the contract when we have commercial lenders present, there will be . . . an extra policeman on duty to help us keep order.' James To Kun-sun of the Democratic Party urged the administration to supply a list detailing the number of areas contained in the deal which could not be divulged.
