INDUSTRY AND TRADE
testing, and information and publications. It maintains close co-operation with the government through the Trade and Industry Branch and is represented on many committees dealing with a wide range of consumer issues and concerns.
The year saw Hong Kong at the forefront of the international consumer movement as the council co-organised and hosted the 13th World Congress of the International Organisation of Consumer Unions (IOCU). The week-long congress, on the theme Consumer Power in the Nineties, drew some 500 consumer leaders from 60 nations. The Consumer Council of Hong Kong was re-elected as a council member of the world body and appointed as the co-chair of its Product Testing Committee.
The council's efforts in protecting the interests of genuine home buyers was strengthened considerably with the introduction of new control measures in the sale of uncompleted residential units. A major breakthrough was seen in the adoption by property developers of an orderly and equitable balloting system replacing the previous queueing method which often drew unruly crowds - and speculators or their 'agents' - to the sales offices. Equally significant are measures to restrict the common practice of developers reserving a number of units for sale to private purchasers. Such pre-emptive selling coupled with the queueing method are largely to blame for fuelling speculation and inflation in the property market. Another consumer protection measure now requires developers to provide full and accurate information in their sales brochures.
In the wake of the bank runs apparently triggered off by the collapse of the Bank of Credit and Commerce International, the council initiated a study and concluded that a bank deposit insurance scheme should be introduced to safeguard the interests of small depositors in the event of bank failure. Continuing its vigilance on oil prices in the aftermath of the Gulf War, the council monitored any price adjustments by oil companies. With the introduction of unleaded petrol in April, this monitoring role was expanded to ensure that the price differentials contributed solely to the recovery of installation costs in the conversion rather than additional profits to oil companies and to advise motorists on the smooth conversion of their vehicles to the use of unleaded petrol.
Other areas of interest were the pricing mechanism of motor insurance premiums and the practices of banks and finance companies in determining the insurable value for fire cover of mortgaged homes or property. Such council studies led to recommendations for improvement in the interests of consumers. The council also submitted detailed recommendations for strengthening the monitoring of the existing self-regulatory system of the outbound travel industry and on the need to safeguard against possible monopoly by carpark operators.
The council's concern over the future development of public utilities and public transport services became all the more acute with the impending renewal of many of their service agreements. The council sought to expand its scope to cover these essential public services and to enhance consumer representation and consultation in monitoring them.
Other highlights of the year included the launching of the council's new bi-annual education publicity campaign on the theme Consumers' Right to Redress. A new series of 30-second publicity films was produced for television channels to educate consumers about their legal rights under the Control of Exemption Clauses Ordinance and a new teaching kit on the subject of Labelling and Packaging was introduced. The council's monthly magazine CHOICE was revamped, further broadening its appeal to consumers. A second CHOICE supplement on the topic of 'Medical Therapy' was published.
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