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Wednesday, November 28, 1973

PRICE CHECKS ON RICE TO CONTINUE

No Evidence of Significant Profiteering

Outside the main producing countries, Hong Kong enjoys the cheapest

rice in Asia, the Director of Commerce and Industry, Mr. David Jordan,

said at today's Legislative Council meeting.

At present, he added, prices are running 15 to 20 per cent below

Singapore levels.

Mr. Jordan said that through the rice control scheme a continuing

close watch is maintained over both wholesale and retail prices.

"I am satisfied that prices generally at retail level are commensurate

with import costs, legitimate trade expenses and the quality of rice on

offer, and there is no evidence of significant profiteering," he said.

"There is, of course, scope for blending rice of different qualities,

and values may vary from one shop to another. But this is a traditional

trade practice and the consumer is able to buy selectively.

FI

Hr. Jordan gave an assurance that price checking operations will

continue and stressed that speculative trading in rice will not be tolerated.

Referring to the suggestion that a similar control scheme might

be extended to other vital supplies, he pointed out that it was a stock-piling

scheme which was restrictive on trade in normal times. "It would not be

suitable for example for fresh foods," he said.

In a wide-ranging review of the Commerce and Industry Department's

work in other fields, Mr. Jordan dwelt on developments in industrial land

policy, investment in industrial operations, commercial relations and

the activities of the Preventive Service and the Trade Investigation Branch.

/He said

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