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Wednesday, March 27, 1974
Where there would seem to be scope for what would generally
be described as 'profiteering,' he went on, would be where consumers
lack full market information.
He gave several examples
panic buying, with consumers putting
themselves at the mercy of retailers; unreasonable rounding up of prices
by wholesalers and/or retailers following upon increases in landed costs
or excise duties; consumers limiting their daily shopping to a few
retail outlets only; and the general tendency among consumers to assume
that they would regularly have to pay more with the result that merchants
take advantage by confirming this expectation and ensuring its continuance.
Referring to suggestions for regulation of essential and
non-perishable commodities such as cooking oil and flour, the Financial
Secretary said that in the absence of controls on supplies in areas other
than rice, "the question of government action does not arise in quite
the same way."
He reiterated that there were no shortages of foodstuffs in
Hong Kong, in the sense that consumers were unable to obtain them at
the going price.
:
Inflation
Mr. Haddon-Cave insisted that most inflation affecting Hong Kong
stemmed from outside sources, but he conceded that there was a degree of
internally generated inflation which, he added, was now largely under
control
/He denied