The government says it may compensate the Hong Kong Airport Authority if it is forced to uphold public interest in the event of a conflict over airport charges, according to a consultation document prepared for the Legislative Council meeting on the authority's privatisation.
'Ultimately, the government can give directions to the [Airport Authority] in the public interest,' the document said.
'But considering the need to also safeguard shareholders' interest, we have also proposed that the government may need to pay compensation to the new company under circumstances such as when it is directed to act contrary to prudent commercial principles, thereby suffering financial loss through no fault of its own.'
The document was prepared for the meeting to be held on Monday in answer to questions legislators raised at a panel meeting on November 22.
The government said it was mindful of the need to put in place appropriate mechanisms to ensure a balance between shareholder interest and that of the wider public.
Airport charges have always been the major concern of the authority's privatisation as airlines are worried Chek Lap Kok will raise fees to give its shares a better valuation on the stock market.
