1
WEDNESDAY, NOVEMBER 13, 1991
SPEECH OF FS ON SCHEME OF CONTROL DEBATE
MR DEPUTY PRESIDENT,
I AM IN SYMPATHY WITH THE AIMS BEHIND BOTH OF THESE MOTIONS. I BELIEVE IT IS COMMON GROUND THAT WHEREVER POSSIBLE COMPETITION SHOULD I PREVAIL AND THAT THROUGH COMPETITION FAIR PRICES WOULD BE OBTAINED. THINK IT IS ALSO COMMON GROUND THAT FOR SOME SERVICES OR FACILITIES, HONG KONG HAS FOUND FRANCHISES A MOST SUCCESSFUL SOLUTION.
FRANCHISES ARE APPROPRIATE WHERE THE LEVEL OF INVESTMENT REQUIRED OR OTHER FACTORS INDICATED THAT FREE COMPETITION MAY NOT OBTAINABLE OR MAY NOT BE THE BEST SOLUTION.
BE
IN MANY OTHER PLACES OUTSIDE HONG KONG, GOVERNMENT ITSELF PROVIDES SUCH SERVICES. IN HONG KONG BY CONTRAST WE HAVE MANAGED THROUGH FRANCHISES TO OBTAIN A REASONABLE COMPROMISE BETWEEN, ON THE
ONE
THE A MONOPOLY OR A SEMI-MONOPOLY SITUATION AND ON
OTHER HAND, SOME OF THE BENEFITS OF COMPETITION AND THE COMMERCIAL APPROACH.
HAND,
IT IS ENTIRELY REASONABLE TO ASK AS BOTH MOTIONS EFFECTIVELY DO
BE STEPS
TAKEN TO ENSURE THAT WHERE
EXIST FRANCHISES
AND COMPETITION IS LESS THAN FREE, PRICES ARE REASONABLE. THAT'S THAT UNDUE ADVANTAGES NOT TAKEN OF ANY QUASI-MONOPOLY AND TO ENSURE THAT THE SERVICE IS SATISFACTORY.
BUT THAT SAY,
ΤΟ
SITUATION
AS IT HAS BEEN POINTED OUT, A CONSIDERABLE ARRANGEMENTS
SCHEMES EXIST, FRANCHISES DO NOT NECESSARILY INVOLVE CONTROL. NOR DID SCHEMES OF CONTROL NECESSARILY THE COMPANY FRANCHISES AND SO ON.
DIVERSITY
OF
OF
BE
THE
BROUGHT THE
SHOULD QUESTION THEN IS HOW MUCH FURTHER INTERVENTION
WHERE TO BEAR BY EITHER LEGCO OR THE PUBLIC OR BOTH. THIS IS
BETWEEN DISTINCTION
THE TAKING ACCOUNT OF PUBLIC OPINION, AMENDMENT AND CONSULTATION, THE ORIGINAL MOTION ON FRANCHISES AND SCHEMES OF CONTROL REALLY COMES IN.
I AGREE WITH MR SZETO WAH THAT THERE IS A SIGNIFICANT DIFFERENCE BETWEEN THE TWO. GIVEN THE COMPLEXITY OF THESE FRANCHISE
AND ARRANGEMENTS
THE GIVEN THE COMMERCIAL SECRECY OF MANY OF
FACTS INVOLVED, A FORMAL REQUIREMENT TO DETAIL CONSULTATION DOES NOT SEEM TO ME A PRACTICAL OR SENSIBLE PROPOSITION. BUT TAKEN INTO ACCOUNT VIEWS
REASONABLE OF THIS COUNCIL AND THE PUBLIC, IT IS ENTIRELY INDEED DESIRABLE.
H
I WOULD NOT REPEAT THE MANY COGENT ARGUMENTS PUT MEMBERS EARLIER IN THIS DEBATE AS TO WHY THE "TAKING INTO FORMULA IS MORE PRACTICAL. AS IN CONCLUSION I WOULD LIKE TO WHAT IS AT STAKE HERE.
THE
AND
BY SOME ACCOUNT" HIGHLIGHT
PRIVATE INVESTMENT IN THE PUBLIC UTILITIES AND TRANSPORT COMPANIES IS MASSIVE.
HER THE SECRETARY FOR ECONOMIC SERVICES IN SPEECH MENTIONED THAT ACTUAL AND PLANNED INVESTMENT BY CHINA LIGHT AND POWER COMPANY ALONE IS IN THE REGION OF $55 BILLION OR CONSIDERABLY MORE THAN THE NEW CHEK LAP KOK AIRPORT.
/INVESTORS ARE
+