THURSDAY, JULY 22, 1982
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WATCHDOG BODY OVER UTILITIES WON'T WORK, JEAFFRESON SAYS
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THE ESTABLISHMENT OF A WATCHDOG BODY OR STANDING COMMISSION TO OVERSEE THE OPERATIONS OF UTILITY COMPANIES IN HONG KONG WOULD NOT WORK, HOWEVER SYMPATHETIC THE GOVERNMENT MIGHT BE TOWARDS THE IDEA, THE SECRETARY FOR ECONOMIC AFFAIRS, MR D.G. JEAFFRESON, SAID TODAY (THURSDAY).
SPEAKING AT THE LUNCHEON MEETING OF THE ROTARY CLUB OF HONG KONG SOUTH, ON THE GOVERNMENT'S POLICIES ON PUBLIC UTILITIES+, MR JEAFFRESON SAID THAT THE PRESENCE OF A WATCHDOG COMMITTEE WOULD TAKE RESPONSIBILITY AWAY FROM THE COMPANIES THEMSELVES.
+ALSO, WE DOUBT WHETHER THE UTILITY COMPANIES WOULD BE AS FORTHCOMING WITH CONFIDENTIAL COMMERCIAL INFORMATION AS THEY ARE NOW IF THEY THOUGHT THIS INFORMATION WAS VIRTUALLY GOING TO BE MADE PUBLIC,+ MR JEAFFRESON ADDED.
HE POINTED OUT THAT THE GOVERNMENT +HAS VERY LITTLE, IF ANY, POSITIVE CONTROL AS FAR AS PUBLIC UTILITIES RUN BY THE PRIVATE SECTOR ARE CONCERNED+.
+THE GOVERNMENT CAN MONITOR WHAT IS GOING ON. IT HAS NEGATIVE POWER IN THE SENSE THAT IT CAN DISALLOW PLANS FOR THE FUTURE AND DISALLOW INCREASES IN CHARGES. BUT IN NO ACCEPTABLE MEANING OF THE TERM CAN IT RUN OR SUPERVISE THESE COMPANIES.
+IN CONSEQUENCE, THE RESPONSIBILITY FOR WHAT THESE COMPANIES DO, THE QUALITY OF SERVICE THEY PROVIDE AND THE LEVEL OF CHARGES THEY IMPOSE, MUST LIE BASICALLY WITH THE COMPANIES CONCERNED.
+THEY ARE AND MUST CONTINUE TO BE DIRECTLY ANSWERABLE TO THE IR CONSUMERS.
+ IF THE GOVERNMENT BECOMES DIRECTLY ANSWERABLE, THEN THE GOVERNMENT WILL ASSUME RESPONSIBILITY WITHOUT POWER AND THE COMPANIES WILL BE LEFT WITH POWER WITHOUT RESPONSIBILITY.
+ THE RESULTS WILL NOT BE IN THE INTERESTS OF CONSUMERS,+ MR JEAFFRESON SAID.
IN SOME PARTS OF THE WORLD, HE SAID, IT WOULD BE ARGUED THAT, BECAUSE THE PUBLIC UTILITIES ARE ESSENTIAL SERVICES INVARIABLY SUPPLIED IN MONOPOLY OR QUASI-MONOPOLY CONDITIONS, THE GOVERNMENT SHOULD RUN THEM.
+THIS IS NOT THE VIEW OF THE HONG KONG GOVERNMENT. WE BELIEVE THAT THE SERVICES ARE LIKELY TO BE PROVIDED MOST EFFICIENTLY BY THE PRIVATE SECTOR, HE SAID.
HIS PERSONAL VIEW WAS THAT IN THE CASE OF PUBLIC UTILITIES RUN BY THE PRIVATE SECTOR, IT WAS VERY MUCH UP TO THE DIRECTORS OF THE COMPANIES TO RECOGNISE THEY WERE OPERATING IN CIRCUMSTANCES WHICH DIFFERED FROM THOSE OF THE BOARDS OF COMPANIES FACING FULL COMPETITION IN THE PRIVATE SECTOR.
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