Hong Kong Ordinances

MASS TRANSIT RAILWAY ORDINANCE - SECT 15

Suspension of franchise

PART IV

SUSPENSION, REVOCATION AND EXPIRY OF FRANCHISE, ETC.

(1) If, on a reference by the Secretary, the Chief Executive in Council
considers that-

   (a)  an emergency exists or is likely to come into existence; or

   (b)  there is or is likely to be for any reason a substantial breakdown in
        the operation of the railway, other than a breakdown that appears to
        be capable of being remedied within a reasonable period, and if he
        considers that it is in the public interest to do so, the Chief
        Executive in Council may order that the franchise be suspended either
        wholly or in part.

(2) Before making any reference to the Chief Executive in Council under
subsection (1)(b) the Secretary shall, as far as is practicable in the
circumstances, consult the Corporation in relation to the proposed reference;
and the Secretary shall bring to the attention of the Chief Executive in
Council any representations made by the Corporation during the consultation.

(3) An order for suspension under subsection (1) remains in effect until the
Chief Executive in Council orders the suspension terminated.

(4) Notice in writing of any order made under subsection (1) or (3) shall be
given to the Corporation.

(5) Where the franchise is suspended under subsection (1) (whether wholly or
in part), the Government, its nominee or a third party designated by the
Government-

   (a)  may take possession of any property which at the time of such
        suspension is property used or kept by the Corporation for the
        purposes of or in connection with the suspended part of the franchise;

   (b)  during the course of the suspension, may retain any property taken
        possession of under paragraph (a) and may use that property in the
        operation of the railway as it thinks fit.

(6) The Government is liable to pay compensation-

   (a)  for the use of, loss of or damage to any property taken possession of
        under subsection (5); and

   (b)  except where a franchise is revoked under section 18, for loss or
        damage of any kind (including consequential loss) sustained by the
        Corporation and in any way arising from or attributable to the
        suspension of the franchise under subsection (1).

(7) The right conferred under subsection (5) to take possession of property
and to use that property in the operation of the railway includes the right to
keep or maintain the property in whatever condition, or to alter the property
in whatever manner, is considered appropriate for that purpose and, without
affecting any entitlement to compensation under subsection (6), nothing in
this Ordinance or any other law imposes on the Government any obligation in
relation to the condition in which property taken under subsection (5) is to
be kept or returned.