TRADE AND INDUSTRY
for licences under the Television Ordinance, and the extension of cross-media ownership restrictions to newspaper owners.
The report on telecommunications - Achieving Competition in the Liberalised Telecommunications Market-examined competition issues arising from the liberalisation of the local Fixed Telecommunications Network Services (FTNS) market in July 1995, identified barriers to competition and made recommendations to promote effective competition and maximise benefits to consumers. The study focused on four major areas of the Hong Kong telecommunications industry: market structure, tariff structure, consumer welfare and the regulatory framework. The government responded in September, accepting most of the council's recommendations, many of which have been or are being implemented. For example, the existing FTNS licence contains provisions which take care of the majority of the council's concerns. The government also intended to introduce a bill to amend the Telecommunication Ordinance in the 1996/97 legislative year.
The study on residential property market, entitled How Competitive is the Private Residential Property Market?, sought to assess the degree of competition in this market. Recommendations were drawn up to address the imperfect competition. found in this market and to lower the barrier to entry by new entrants. Other recommendations included improving residential land and property supply, enhancing marketability of older properties and increasing consumer access to property information. The government will respond to this report within six months of its release.
In February, the government responded to the council's competition report on the domestic water heating and cooking fuel market, published in August 1995. The government agreed with the council that, if feasible, the common carrier system would inject competition, to consumers' benefit, into the domestic gas supply market. A study of the feasibility of introducing a common carrier system in Hong Kong would be commissioned. An Energy Advisory Committee would be set up to advise the government on energy policy and other related matters.
At the end of October, the council released a main study report on competition policy. The report emphasised that a comprehensive competition policy was essential to Hong Kong's economic future, and put forward a set of recommendations for the enactment of a competition law in Hong Kong. The government will respond to this report within six months of its release.
Since its establishment in November 1994, the Consumer Legal Action Fund (CLAF) has granted assistance to various groups of consumer seeking redress. During the year, the CLAF investigated 44 applications for assistance. Assistance was granted to two groups of consumers, involving modelling school and real property transactions, and action to assist these consumers is being pursued by the fund. The council is the trustee of the fund and is advised by a management committee and a board of administrators on the eligibility and merits of the cases seeking assistance. Vital consumer protection legislation has been enacted or amended in recent years, notably the Consumer Goods Safety Ordinance, the Sale of Goods (Amendment) Ordinance, the Supply of Services (Implied Terms) Ordinance and the Unconscionable Contracts Ordinance. To enhance public awareness of the legal rights afforded under the law, the council launched a publicity drive which was conducted mainly through Announcements of Public Interest broadcasts at regular
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