1

2

1

3.

In due Course

a consultancy agreement was

concluded with a firm of professional accountants, Messrs

Ernst & Whinney. The consultancy commenced in August

1983. The consultants'

terms of reference were to advise

whether, given the Government's basic policy towards

public utilities and the provisions of the Schemes of

Control, the Government's monitoring arrangements

safeguarded both consumers and shareholders, and whether

any improvements in those arrangements could be justified.

4.

On 27 October 1983 in the Debate on the Motion of

Thanks, Mr Stephen Cheong referred to the consultancy and

expressed the hope that the Government would treat it as

something much more important than a purely public

relations exercise, and I replied in this Council on

9 November 1983 that we were treating the consultancy very

seriously. I said that whilst we believed that the system

of monitoring was effective it would be foolhardy to work

on the basis that there was no room whatsoever for

improvement.

5.

and on the

The consultants have now completed their report,

the advice of Executive Council you, Sir, ordered

that the report be published. Publication will take place

tomorrow when the report will be available for sale to the

public.

16. In view

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