THURSDAY, OCTOBER 17, 1991
SHE ALSO POINTED OUT TO MEMBERS THAT IN CONSIDERING THE NEED FOR A FRANCHISE THE FACTORS TO BE CONSIDERED WOULD INCLUDE :
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THE DESIRABILITY OF ENCOURAGING GREATER COMPETITION IN ORDER TO MEET CONSUMERS' ASPIRATIONS;
THE OPERATING PERFORMANCE DURING THE CURRENT FRANCHISE;
THE OPERATING ENVIRONMENT FACING THE FRANCHISEES, SUCH AS THE POTENTIAL FOR GROWTH AND THE PROSPECTS FOR COMPETITION; AND
THE NEED TO ATTRACT MORE INVESTMENT TO MEET GROWTH IN DEMAND AND IMPROVE SERVICES.
MEANWHILE, MRS CHAN SAID THE SPECIFIC CRITERIA ADOPTED IN NEGOTIATION OF AN SCA MIGHT INCLUDE :
WHETHER IT WAS IN THE PUBLIC INTEREST FOR THE SERVICE IN QUESTION ΤΟ BE MONITORED THROUGH SUCH AN ARRANGEMENT (GENERALLY SPEAKING THIS WOULD BE APPROPRIATE ONLY IF THE COMPANY WAS ENJOYING EXCLUSIVE RIGHTS OR A DE FACTO MONOPOLY IN THE PROVISION OF A PARTICULAR SERVICE); WHERE A COMPETITIVE MARKET EXISTED THE GOVERNMENT GENERALLY PREFERRED TO LET MARKET FORCES DICTATE PRICING AND PROFIT LEVELS:
WHAT SPECIFIC FEATURES SHOULD BE INCLUDED IN THE AGREEMENT TO ENSURE THAT IT WAS TAILORED TO SUIT THE PARTICULAR CIRCUMSTANCES OF THE COMPANY AND THE SERVICE THAT IT WAS PROVIDING;
WHAT SAFEGUARDS IN TERMS OF FINANCIAL AND TECHNICAL MONITORING PROCEDURES SHOULD BE INCORPORATED TO ENSURE THAT THE INTERESTS OF CONSUMERS WERE PROTECTED; AND
WHAT RETURN TO SHAREHOLDERS WOULD BE REASONABLE AND NECESSARY TO ENCOURAGE CONTINUING INVESTMENT.
"IN THE LIGHT OF THESE CRITERIA THE GOVERNMENT WILL ENTER INTO NEGOTIATIONS WITH THE COMPANY CONCERNED WITH A VIEW TO REACHING AGREEMENT IN DETAIL ON THE TERMS OF THE SCA," THE SECRETARY SAID.
"SUCH NEGOTIATIONS ARE NORMALLY CONDUCTED IN CONFIDENCE AS MATTERS OF COMMERCIAL SENSITIVITY MUST BE DISCUSSED, SHE SAID.
"
ALL AGREEMENTS, MRS CHAN SAID, WERE SUBJECT TO THE APPROVAL OF EXECUTIVE COUNCIL FOLLOWING WHICH THEY WERE PUBLISHED IN ENGLISH AND IN CHINESE.
THE
PUBLIC
SHE ALSO SAID THERE WAS NO GENERAL RULE ON THE QUESTION OF
CONSULTATION DURING THE PROCESS OF NEGOTIATION OF SCA'S.
MERITS,
卧申
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IN PRACTICE EACH CASE
SHE SAID.
IS AND WILL BE CONSIDERED ON Its
/AS REGARDS
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