21
WEDNESDAY, OCTOBER 15, 1986
MR CHAM EARLIER DESCRIBED ECONOMIC ASPECTS, AND SAID IT WAS IMPORTANT TO RECOGNISE THAT THE ECONOMIC CALCULATION TO JUSTIFY A NEW PLANT, SUCH AS DAYA BAY, MUST REST ON PROJECTIONS AND FORECASTS OF FUTURE REVENUES AND COSTS.
IN THIS RESPECT, THE FUTURE PRICES OF FOSSIL FUEL AND RATES OF INFLATION WERE IMPORTANT CONSIDERATIONS. CAREFUL DEFINITION OF THE PROBLEM AND THE ALTERNATIVES UNDER ANALYSIS WAS REQUIRED.
HE SAID HE FELT THAT HONG KONG COULD RELY ON THE EXPERTISE OF THE FINANCIAL ADVISERS TO MAKE A BALANCED AND EXHAUSTIVE ANALYSIS.
+ THE ECONOMIC REASONING WITH ANY INVESTMENT OUTLAY ALSO HINGES ON CONDITIONS WHICH MAY CHANGE BECAUSE OF THE ACTION TAKEN,+ HE ADDED.
J
+HERE THE OUTCOME OF FUTURE DATA AND ESTIMATES INTERACT WITH EACH OTHER AS COSTINGS, REVENUES AND FUNDING REQUIREMENTS CHANGE.+
INCLUDE N-POWER TARIFF IN CONTROL SCHEME
*****
APART FROM MAKING PUBLIC THE INFORMATION ON THE TARIFF FOR THE PURCHASE OF NUCLEAR-GENERATED ELECTRICITY, GOVERNMENT SHOULD TAKE A PRAGMATIC STEP BY INCLUDING THE TARIFF IN THE SCHEMES OF CONTROL OF THE TWO LOCAL POWER COMPANIES, THE HON JACKIE CHAN SAID TODAY (WEDNESDAY).
THE MOVE WOULD PROVIDE REASONABLE CONTROL AND ENSURE THAT THE INTEREST OF HONG KONG WAS NOT JEORPARDISED, HE SAID.
+AN OPEN AND RESPONSIBLE GOVERNMENT SHOULD ADOPT A FRANK AND SINCERE ATTITUDE WHICH IS THE KEY TO THE COMMUNITY'S SUCCESS, PROSPERITY AND PEACEFULNESS, HE ADDED.
HE POINTED OUT THAT THE PUBLIC HAD BEEN DEPRIVED OF THE RIGHT TO CHOOSE TO BUY EITHER COAL-FIRED OR NUCLEAR-GENERATED ELECTRICITY, BUT THEY SHOULD HAVE THE RIGHT AS CONSUMERS TO KNOW HOW THE RATE OF TARIFF WOULD BE ARRIVED AT.
MR CHAN SAID HE DID NOT UNDERSTAND WHY CHINA INSISTED ON THE SIX-YEAR GUARANTEE THAT THE TARIFF OF NUCLEAR-GENERATED ELECTRICITY WOULD NOT BE HIGHER THAN COAL OR OIL-FIRED ELECTRICITY.
+ LOGICALLY, THE COST SHOULD BE HIGHEST DURING THE PLANT'S INITIAL OPERATION. YET ASSURANCE OF THE TARIFF IN THIS PERIOD HAS BEEN GIVEN.
/+SEVERAL YEARS