Contents of Section

Chapter:

230 PDFTitle:PUBLIC BUS SERVICES ORDINANCEGazette Number:29 of 1998; 62 of 1999
Section:23Heading:EmergencyVersion Date:01/07/1997

Remarks:

Adaptation amendments retroactively made - see 29 of 1998 s. 105; 62 of 1999 s. 3

(1) If the Chief Executive in Council considers that an emergency exists he may direct that the franchise of a grantee be suspended, either altogether or in respect of any specified route he may specify, until the Chief Executive in Council declares that the emergency no longer exists. (Amended 62 of 1999 s. 3)
(2) Where under subsection (1) a franchise is suspended altogether or in respect of any specified route, the Government may by written notice served on the company and published in the Gazette require the company to deliver to the Government possession of the following property, that is to say-

        (a) any premises provided and maintained in accordance with section 19;
        (b) any property (other than premises mentioned in paragraph (a)) used or kept by the company for the purposes of or in connection with its franchise,
and may at the time of or as soon as practicable after service of the notice take possession of such property.
(3) Any property taken possession of under subsection (2)-
        (a) may be retained by the Government until such time as the Chief Executive in Council declares that the emergency no longer exists, and may be so retained notwithstanding that the franchise period of the grantee has expired during the period of the emergency; and (Amended 62 of 1999 s. 3)
        (b) may during its retention be used by the Government or its nominee in the operation of such bus service as the Commissioner thinks fit.
(4) Subject to subsection (9), where possession is taken under subsection (2) of any property, the person having for the time being the right to possession over the property during its retention by the Government under subsection (3) shall be entitled to compensation as provided in subsections (5) to (7).
(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease-
        (a) which is terminable by either party upon the giving of 1 month's notice;
        (b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in respect of possession of the property under this section; and
        (c) under which the rental is payable monthly in arrears.
(6) For the purposes of subsection (5)-
        (a) in the case of property being a number of motor vehicles, reference to the open market rental shall be taken to be reference to the open market rental that a lessor might be expected to realize in respect of that number of vehicles leased as a single lot;
        (b) in the case of property being land or buildings on land, reference to a lease of the property shall be construed as reference to a lease on terms prohibiting the use of the property other than in accordance with the terms of any Government lease under which the land is held. (Amended 29 of 1998 s. 105)
(7) Notwithstanding subsection (5)-
        (a) the compensation payable in respect of property being spare parts and other consumables shall be an amount equal to the difference in book value of the stock of such consumables taken over the period of the Government's possession of the property under subsection (3);
        (b) the compensation payable in respect of property being the fixed assets of the franchisee (including plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal to the depreciation in the value of the property over the period of the Government's possession of the property under subsection (3) as calculated at the rate of depreciation applicable in respect of that property for the purposes of section 30,
and any such compensation shall be payable at the end of that period of possession.
(8) A grantee shall, in addition to any entitlement to compensation under subsection (4), be entitled to compensation for any loss or damage sustained during the franchise period in consequence of any suspension of its franchise under subsection (1), but nothing in this subsection shall be construed so as to entitle a grantee to receive compensation under both this subsection and subsection (4) in respect of the same loss or damage.
(9) The liability of the Government under this section to pay compensation to any person under subsection (4) shall cease to accrue upon the making of a declaration by the Chief Executive in Council under subsection (1). (Amended 62 of 1999 s. 3)
(10) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.
(Replaced 82 of 1995 s. 4)