The expansion and development plan for the Hong Kong Disneyland Resort (2016/12/14)(Supplementary)

MR YIU SI-WING (in Cantonese): President, I agree with the Secretary that HKDL can directly help attract tourists and contribute to Hong Kong's economyand employment. However, HKDL is an enterprise after all. It cannot rely oncash injections to survive in the long run, and it can hardly even afford financiallosses persistently. The Secretary should know that the operating costs of HKDL include royalty and management fee payments to its headquarters in theUnited States. During this negotiation, have the authorities asked the United States to waive or reduce the payment of these two fees in the event that HKDL incurs losses? In fact, the United States waived HKDL's management fee and extended its payment of royalty in 2007 and 2009. If the authorities have made this request during the negotiation, what are the details? If not, what are the reasons?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (inCantonese): President, our colleagues have made their best efforts in obtaining the best terms for the overall interests of Hong Kong during the negotiations and have thereby come up with the current best solution. In the past, we also discussed with TWDC to make adjustments according to actual businessperformance. As I have repeatedly explained, adjustments were made in 2009 to peg the management fee to earnings before interest, tax, depreciation andamortization ("EBITDA"). I would like to point out that the $10.9 billionrequired for the expansion and development project does not include managementfee or royalty. They are two separate issues and should not be confused.

PRESIDENT (in Cantonese): Mr YIU Si-wing, which part of your supplementary question has not been answered? 

MR YIU SI-WING (in Cantonese): The Secretary has not explained to us whether the issue has been discussed.

PRESIDENT (in Cantonese): Secretary, do you have anything to add?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (inCantonese): President, I have already pointed out in my reply just now that this isthe best solution reached in the negotiations to best serve the overall interests of Hong Kong.