TRADE AND INDUSTRY
112
In June 1995, the council, in association with the Consumers International, organised an International Conference on Fair Trading which was attended by over 200 local and overseas participants. It provided a useful opportunity for discussions among regulators, consumers and businessmen in fair trading and consumer protection issues.
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The council's study report on gas supply, entitled Assessing Competition in the Domestic Water Heating and Cooking Fuel Market, was released in August 1995. The report concluded that, due to cultural, technical and legal factors, the three main domestic fuels in use in Hong Kong - liquefied petroleum gas (LPG), manufactured Towngas and electricity - cannot be regarded as perfect substitutes for one another and that the market share of Towngas, which has a dominant position in the fuel gas market, will continue to grow. The council recommended that competitiveness in the gas supply market be improved by introducing regulation of the Hong Kong and China Gas Company Limited, the supplier of Towngas, and a 'common carrier' system under which other gas suppliers would have access to a common gas distribution network.
In response to a competition study report of the council on the banking sector, the government accepted the recommendation to remove the interest rate cap on time deposits in phases. The first phase of liberalisation started in October 1994 followed by the second phase in January 1995. The interest rate caps on Hong Kong dollars time deposits fixed for more than seven days were deregulated. Having assessed the impact of the deregulation of time deposits, the government decided to further deregulate seven-day deposits from November 1995. The council will continue to strive for the total deregulation of interest rates on time deposits.
During the year, the council, in conjunction with the Law Society, ICAC and trade organisations, drew up a new standardised agreement entitled Engagement Agreement of Property Agent (for Purchaser), which is meant to provide greater consumer pro- tection for property purchasers by stipulating the rights and obligations of estate agents. The agreement is also in line with the government's intention to regulate estate agents. In order to provide comprehensive and objective information on the residential property market, the council published in its monthly magazine CHOICE a regular column on the property prices, supply and trend for the reference of consumers, with a view to curbing excessive speculation in the market. Furthermore, as a member of the Law Reform Commission Sub-committee on Description of Flats on Sale, the council supported the publication of the Law Reform Commission's report on the subject in April 1995. The report recommended that developers should provide adequate and accurate sales information of uncompleted flats in Hong Kong. The government is considering the recommendations.
The council continued to promote 'green consumerism' and sustainable con- sumption. A campaign to encourage people to use fewer plastic bags, for example, organised jointly by the Consumer Council, the Retail Management Association and the Environmental Protection Department, was conducted in the retail sector from May 1995. More than 1 500 retail outlets participated, and over 30 per cent of participating retailers had achieved the 10 per cent reduction target. The campaign marked the success of the first industry-driven effort in reducing the quantity of plastic bags distributed in retail outlets and supermarket chains in Hong Kong. A similar campaign was carried out in some selected wet markets and was well supported by the stall operators and the public.