### Ferry Services Ordinance 《渡輪服務條例》

23. Chief Executive in Council may impose financial penalty
(1) The Chief Executive in Council may by notice in writing impose on a grantee a financial penalty specified in the notice for any failure by the grantee to comply with its franchise or this Ordinance or any direction or requirement under its franchise or this Ordinance or any provision of any plan in force under section 22 where the Chief Executive in Council is satisfied that the grantee has had reasonable opportunity of complying with its franchise, this Ordinance, the direction or the requirement, as the case may be, and an opportunity of showing cause why the penalty should not be imposed. 
(2) A financial penalty imposed under this section shall not exceed—
(a) in respect of any one or more failures—
(i) $10,000 in the case of a first imposition of such penalty; 
(ii) $20,000 in the case of a second imposition of such penalty;
(iii) $50,000 in the case of a third or subsequent imposition of such penalty; and 
(b) in respect of any failure which is of a continuing nature $10,000 for each day on which the failure continues. 
(3) A financial penalty imposed under this section shall be recoverable by the Government as a civil debt. 

(4) Where the Chief Executive in Council is considering the imposition of a penalty on a grantee under this section and a penalty has previously been imposed on the grantee under this section, the Chief Executive in Council shall not consider any failures of the grantee which were considered for the imposition of the penalty on the previous occasion unless the grantee has failed to pay that previous penalty or to rectify any default that gave rise to such failure.
(Amended 62 of 1999 s. 3)

### Ferry Services Ordinance 《渡輪服務條例》

24. Emergency or breakdown in franchised service
(1) If the Chief Executive in Council considers—
(a) that an emergency exists or is likely to come into existence; or 
(b) after consultation between the grantee and the Commissioner, that there is or is likely to be a substantial breakdown for any reason in the operation of a franchised service, 
he may suspend the franchise either altogether or in respect of any such franchised service operated thereunder as he may specify, and such suspension shall have effect until the Chief Executive in Council terminates the suspension or declares that the circumstances that gave rise to the suspension no longer exist. (Amended 62 of 1999 s. 3)
(2) Where under subsection (1) a franchise is suspended altogether or in respect of any franchised service, the Government may take possession of any property of the grantee used or kept by it for the purposes of or in connexion with its franchise and the Government or its nominee may use such property in the operation of such ferry service as the Commissioner thinks fit. 
(3) A grantee shall be entitled to compensation for the use or loss of or damage to any of its property of which possession has been taken under subsection (2) and, except where a franchise is revoked under section 25, for any loss or damage sustained in consequence of any suspension of its franchise or of any franchised service under subsection (1).

### Ferry Services Ordinance 《渡輪服務條例》

25. Revocation of authority to operate a franchised service or of franchise
(1) If it appears to the Chief Executive in Council that without good cause a grantee has failed, or is likely to fail, to maintain a proper and efficient ferry service, either generally or in respect of any franchised service the Chief Executive in Council may direct the Commissioner to serve on the grantee a notice in writing requiring the grantee to show cause in writing, within 28 days after the service of the notice—
(a) why its authority to operate any franchised service set out in the notice should not be revoked; or 
(b) why its franchise should not be revoked altogether. 
(2) Any notice served under subsection (1) shall specify the ground for revoking the franchise or any authority thereunder and may relate to and include any franchised service whether the grantee has failed to maintain a proper and efficient ferry service in relation to that service or not. 
(3) If, after the service of a notice under subsection (1)(a)—
(a) the grantee does not show cause why its authority to operate the franchised services set out therein should not be revoked; or 
(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the opinion that the grantee has not shown cause why such authority should not be revoked, 
the Chief Executive in Council may, with effect from such date as he may specify, revoke the right of the grantee to operate all or any of the franchised services set out in the notice. 
(4) If, after the service of a notice under subsection (1)(b)—
(a) the grantee does not show cause why the franchise should not be revoked altogether; or 
(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the opinion that the grantee has not shown cause why the franchise should not be revoked altogether, 
the Chief Executive in Council may, with effect from such date as he may specify, revoke the franchise. 
(5) Notice of any revocation under this section shall be served on the grantee and, as soon as practicable thereafter, published in the Gazette. 
(6) A grantee shall not be entitled to compensation in respect of the revocation of a right or franchise under this section.
(Amended 62 of 1999 s. 3)

### Ferry Services Ordinance 《渡輪服務條例》

26. Temporary taking by Government of property where franchise has been revoked
(1) Where a franchise is revoked under section 25 the Government may take possession of any property used or kept by a grantee for the purposes of or in connexion with the operation of any ferry service under the franchise so revoked and such property may be used by the Government, or its nominee, in the operation of such ferry service as the Commissioner thinks fit. 
(2) Any property of which possession is taken under subsection (1) may be retained by the Government for such initial period, not exceeding 2 years, as the Chief Executive in Council may direct and such period may be extended by resolution of the Legislative Council for further successive periods not exceeding 6 months each. (Amended 62 of 1999 s. 3)
(3) At any time during or upon the expiration of the period, including any extension thereof, referred to in subsection (2), any property of which possession is taken under subsection (1) may be returned to the grantee of the revoked franchise or otherwise disposed of in such manner and upon such terms as the Chief Executive in Council thinks fit and where any property is disposed of otherwise than by return the owner shall be entitled to compensation to the extent that the property is not replaced or otherwise compensated for. (Amended 62 of 1999 s. 3)
(4) Where possession is taken under subsection (1) of any property, the owner shall be entitled to compensation for the use or loss of or damage to such property. 
(5) In calculating the amount of compensation payable under subsection (4), the amount of any compensation payable under section 24(3) shall be deducted from such amount. 
(6) In this section property used or kept by a grantee for the purposes of or in connexion with the operation of any ferry service (為經營任何渡輪服務的目的或與經營任何渡輪服務相關而由專營公司使用或備存的財產) includes property so used or kept which is also used or kept for any other purposes.

27. Arbitration
(1) If the Government and an owner are unable to agree as to the amount of compensation payable under this Part, either party may refer the matter to arbitration under the Arbitration Ordinance (Cap. 609). (Amended 17 of 2010 s. 112)
(2) In determining the amount of compensation payable an arbitrator shall have regard to any matter he considers relevant, subject to this Ordinance and to the value of any asset taken over in the operation of a ferry service.