+
5.
Tuesday, March 5, 1974
DC & I can ensure that wholesalers take delivery of rice
purchased from importers, and these figures are watched very closely to
prevent speculative stock piling by wholesalers.
To this end the department
is able to restrict credit offered by importers to wholesalers.
It may be seen therefore that the rice control schene is basically
a schemo to ensure supplies of rice to meet Hong Kong's consumption demand
and is not a price control mechanism. Nevertheless, the Government has
a responsibility in a controlled system of this kind to ensure that the
interests of the general public are properly looked after and that companies participating at various levels of transaction in rice sales are not able
to manipulate the control procedures for speculative purposes.
UNDERCOVER PAYMENTS
The department has been seriously concerned about reports of
price and supply speculation, For many months visits by officers of
the department have been paid to importers' premises to witness sales and
to retail outlets to examine prices. The three main retailers' associations
have been asked many times to report to the department any instances of
undercover payment demands by wholesalers or any other supply arrangements
not considered normal or reasonable.
The department has been willing, and is willing, to investigate
any such complaint and if proved has the ability to take action against
the wholesaler concerned.
But it has received no co-operation from retailers
and the retail associations have made no complaint
or anonymous
verbal, written
to the department about what they now allege is a widespread
practice of undercover additional payments for rice deliveries from wholesalers.
/DC & I