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SCMP Reporter

THE Director of Audit will only be allowed access to the accounts of the Airport Corporation in the event of serious Government concern.

  It was revealed in the White Bill published yesterday that the Government will deny the Director of Audit such power under normal circumstances, despite legislators' opposition.

  The Secretary for Economic Services, Gordon Siu Kwing-chue, yesterday said Governor Chris Patten could authorise an audit in the public interest.

  But United Democrat legislator Albert Chan Wai-yip said he could not accept such an arrangement.

  He and other legislators said last month that they would seek to amend the bill if it did not allow the Director of Audit such powers.

  The corporation - which will run the new airport at Chek Lap Kok - should be under the scrutiny of the Director of Audit because he could actively and independently conduct value-for-money studies, said Mr Chan.

  The Government said there was already an audit committee - under the board of the Provisional Airport Authority (PAA) - to conduct value-for-money studies.

  Mr Chan argued that this was not as effective as scrutiny by the Director of Audit and the subsequent tabling of his report to the Legislative Council.

  According to the White Bill, the corporation will table to the Legislative Council at the end of the financial year a report on the affairs of the corporation; a copy of its statement of accounts; and a copy of the auditor's report.

  As with the PAA, there will be an internal audit unit and Government-appointed external auditors to look into corporation's financial accounts.

  Besides regulations provided by the bill itself, there will be a financial support agreement setting out the limits of the Government's financial support for the corporation.

  That will be made to ensure ''the Government will be able to monitor the project's progress and the financial position of the corporation''.

  The agreement will require the corporation to submit annual financial plans to the Government in advance.

  It prohibits the corporation entering into an agreement with a lender which might restrict its ability to pay dividends to the Government or to amend the agreed scope of works comprising the airport project.

 Other checks revealed in the White Bill allow the Government to carry out extensive regulation of the corporation.

  The Governor may direct any of the corporation's functions if he considers it in the public interest, while the Director of Civil Aviation can direct the corporation in line with international civil aviation, security and safety measures.

   The corporation may invest only in areas specified by the Financial Secretary and new general or specific reserve funds cannot be established without his approval.

  The bill also spells out areas which fall outside the ambit of the corporation.

  It has no power to operate an air traffic control or meteorological service - that remains the Government's responsibility.

  Any air service agreements with other countries can only be made by the Government itself.

  Information relating to the design, construction, supervision and financing of the airport must be supplied to the Government.

  Furthermore, there will be a airport land grant to monitor the corporation's non-airport commercial/industrial activities on Chek Lap Kok.

  It will restrict the types of uses and the maximum gross floor areas allowed for any non-airport development.

  It will also limit the corporation's right to charge its assets as security or dispose of land to ensure that no third party can obtain control of any asset essential to the operation of the airport.



No routine access to airport's accounts