THE HOTELS ORDINANCE, 1949.
ENCLOSURE 2
93
Explanatory observations in accordance with Article XXVIII
of the Royal Instructions.
ins 1.36
(18)
2.
This Ordinance was passed on the 23rd February, 1949.
wat attehad.
The reasons for enacting the Ordinance are briefly stated in
the Objects and Reasons to the Bill. A copy of such Bill is attached on
which are indicated the amendments to the Bill which were effected, as
hereinafter described, at the Committee stage.
3. An historical background exists to the enactment of the
legislation under report. The control of hotel rates is not novel in
Hong Kong. As far back as September, 1946, the Price Control (Hotel
Services) Regulations, 1946, were made as Defence Regulations under
powers conferred by section 2(1) of the Supplies and Services
(Transitional Powers) Act, 1945, as applied to the Colony. Regulation 4
of those Regulations empowered a Competent Authority by Order to fix
maximum charges for all or any hotel services, including the provision
of lodging. In fact, no Order was made under those Regulations for the
reason that the Quartering Authority as Competent Authority found it
possible to apply control of rates by way of a "gentleman's agreement".
This agreement or understanding was entered into by the Competent
Authority with hotel managements at a time when derequisition of hotel
accommodation was taking place. By this means he ensured that hotel
rates would not, for Hong Kong residents, be greater, or not much greater,
than the rates payable while hotels were under requisition. In July,
1948, the Price Control (Hotels) (Control of Charges) Regulations, 1948,
were made in replacement of the Regulations of 1946. The 1948 Regulations
constituted an amplification of the Regulations of 1946 but in
essentials the Regulations of 1948 were the same as those of 1946 in
that the Competent Authority was empowered by Order to fix maximum charges.
At that date, however, the Competent Authority proceeded to make an Order
and he did so because he found that the "gentleman's agreement" was