WEDNESDAY, NOVEMBER 24, 1982
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+WHY DO THE CRITICS NOT REMARK ON THE FACT HONG KONG ELECTRIC'S INCREASES OVER TWO YEARS REFLECT LESS THAN HALF THE RATE OF INFLATION, OR THAT CHINA LIGHT AND POWER WILL OFFER BULK CONSUMERS NEXT YEAR POWER MORE CHEAPLY THAN TWO YEARS BEFORE? THE FIRST COAL FIRED GENERATOR AT CASTLE PEAK +A+ REPRESENTS A SAVING OF HK$1 MILLION PER DAY OVER OIL USAGE. THE CAPITAL COSTS OF THE CHANGE ARE HUGE. HOW WAS IT PLANNED MANY YEARS AGO? HOW WAS IT FINANCED?+ HE ASKED.
MR BREMRIDGE SAID HE DID NOT BELIEVE THAT SHAREHOLDERS IN ANY OF THE UTILITIES WERE BEING OVER-REWARDED.
IN 1981 THE AVERAGE RETURN ON A SELECTION OF SHAREHOLDERS' FUNDS IN MAJOR DISPARATE COMPANIES RANGED FROM 22 PER CENT TO 40 PER CENT. THIS WAS A HIGH RETURN IN A GOOD YEAR. THEY WILL DO LESS WELL IN BAD YEARS. THEY WILL, HOWEVER, AVERAGE OUT, WHILE THE UTILITIES REMAIN STEADY ON A MIDDLE COURSE. BUT DO MEMBERS THINK, FOR EXAMPLE, THAT THE SHAREHOLDERS IN TELCO ENTITLED TO 16 PER CENT ARE UNNECESSARILY PRIVILEGED? OR CMB WITH 15 PER CENT?
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+THE ARGUMENT THAT OTHER COMPANIES CUT BACK IN TIMES OF DIFFICULTY IS MATCHED BY THE NEED OF THE UTILITIES CONSISTENTLY TO BE PLANNING AND PROVIDING FOR WHAT IS ESSENTIAL TO THE NEEDS OF THE COMMUNITY IN FIVE OR EVEN 10 YEARS' TIME. NO ONE CARES OVERMUCH - EXCEPT ITS LABOUR IF AN ORDINARY COMPANY GOES BANKRUPT BECAUSE IT HAS GUESSED WRONG. BUT WE WOULD NOT FIND IT AMUSING IF THIS HAPPENED TO ONE OF THE POWER OR BUS COMPANIES. IN BRIEF, SOME CAN MAKE SERIOUS MISTAKES, BUT THE UTILITIES CANNOT. IN ANY CASE HEC AND CLP ARE VERY LARGE COMPANIES BY WORLD STANDARDS. AGREED PROFITS ARE BOUND TO REFLECT THEIR SIZE.
MR BREMRIDGE SAID THE UTILITIES HAD SERVED THE PUBLIC WELL AND IT WAS THEIR RESPONSIBILITY, NOT THE GOVERNMENT'S, TO CONTINUE TO DO SO. IT IS QUITE WRONG FOR GOVERNMENT TO INTERFERE WITH MANAGEMENT, SOME OF WHOSE SENSE OF PROPER PUBLIC RELATIONS HAS ADMITTEDLY IN THE PAST BEEN FREQUENTLY AND SIGNIFICANTLY LACKING. IT MUST BE CLEAR, HOWEVER, WHERE MANAGEMENT RESPONSIBILITY LIES. AND IT CAN NEVER LIE WITH A COMMITTEE. I TOTALLY REJECT ANY CONCEPT OF A MONITORING AND INTERFERING COMMITTEE.+
+THE PRESENT ECONOMIC CLIMATE IS DIFFICULT. WE SHALL AS BEFORE FIND OUR WAY OUT AND UP BY HARD WORK, NOT BY SELECTING WHIPPING BOYS OR SEEKING TO BURN WITCHES. BEFORE SCHEMES OF CONTROL COME TO THEIR CONTRACTUAL END WE SHALL NATURALLY SEEK IMPROVEMENT IN THE LIGHT OF EXPERIENCE.+
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