5
WEDNESDAY, NOVEMBER 13, 1991
WITH THE POWER I SHOULD NOW LIKE TO DEAL MORE SPECIFICALLY
A ROUND OF HAS JUST COMPLETED COMPANIES. THE ADMINISTRATION NEGOTIATIONS WITH THE CHINA LIGHT AND POWER COMPANY ON THE TERMS UNDER NEGOTIATIONS WERE WHICH ITS SOC AGREEMENT SHOULD BE RENEWED. THESE PROTRACTED AND TOUGH: BOTH SIDES HAD THEIR CONCERNS AND PERSPECTIVES
REFUTED I AND A
TO BE STRUCK.
CATEGORICALLY THE BALANCE HAD ALLEGATION BY ONE MEMBER THAT THE ADMINISTRATION SOUGHT TO PROTECT THE INTEREST OF A BRITISH COMPANY AT THE EXPENSE OF CONSUMER INTERESTS. LONG AND HARD NEITHER I NOR MY STAFF WHO WERE INVOLVED IN THE NEGOTIATION DESERVE THIS EXPRESSION ON OUR INTEGRITY. FURTHERMORE,
ΤΟ DESCRIBE MR ALLEN LEE HAS POINTED OUT, IT IS FACTUALLY INCORRECT
CLP'S POWERS CHINA LIGHT AND POWER AS A COLONIAL BRITISH COMPANY,
AMERCIAN GENERATING PLANT IN FACT IS SIXTY PERCENT OWNED BY EXXON, AN
PUBLICLY LISTED COMPANY WHILST CHINA LIGHT AND POWER IS OF COURSE A LOCAL COMPANY.
AS
THE
WOULD STRESS THAT THE SCHEME OF CONTROL AGREEMENTS WITH
BASIS. POWER COMPANIES ARE ENTERED INTO BY THEM ON A PURELY VOLUNTARY
RIGHT TO INVOLVE WITHOUT THEM THE GOVERNMENT WOULD HAVE NO DIRECT
то APPROVE THEIR ITSELF IN THE BUSINESS PLANS OF THE COMPANIES OR TARIFF LEVEL.
AND MY
COLLEAGUES
IN THE ECONOMIC SERVICES AND
LAST MONDAY MORNING I SERVICES BRANCH BRIEFED MEMBERS OF THE OMELCO ECONOMIC PUBLIC UTILITIES PANEL IN DETAIL ON HOW THE EXISTING SCHEME OF CONTROL AGREEMENT WAS ADMINISTERED AND ON THE BACKGROUND TO AND OUTCOME OF THE CURRENT NEGOTIATIONS. I EXPLAINED SPECIFICALLY WHY WE FELT THAT THE SCHEME OF CONTROL AGREEMENT HAS WORKED WELL. THESE ARE:
· DURING THE
-
SCAS, PREVIOUS
THE OF THE CURRENT AND COURSE
AND WILL COMPANIES HAVE INVESTED OVER $38 BILLION IN ASSET SPEND A FURTHER $17 BILLION IN THE NEXT TWO YEARS.
TARIFF LEVELS, WHICH COMPARE FAVOURABLY WITH THOSE CHARGED IN 12 PER BOTH EUROPE AND THE REGION, HAVE ONLY INCREASED BY
PER CENT ON AVERAGE OVER THE PAST 10 YEARS COMPARED TO A 91 CENT INCREASE IN THE CONSUMER PRICE INDEX.
IN REAL TERMS, THE COST OF ELECTRICITY HAS FALLEN OVER 40 PER CENT IN 10 YEARS.
HONG KONG'S ELECTRICITY SUPPLY IS ONE OF THE MOST RELIABLE IN AND THERMAL THE REGION WITH VERY HIGH LEVELS OF TECHNICAL EFFICIENCY.
I
ENSURING ALSO EMPHASIZED TO MEMBERS THE VITAL IMPORTANCE OF
THAT DEMAND CONTINUED INVESTMENT IN THE POWER SUPPLY INDUSTRY GIVEN
NOT CONTINUES TO INCREASE AND THAT THE CURRENT INVESTMENT CLIMATE IS
RATING WAS CREDIT INTERNATIONAL HK'S FAVOURABLE. ALTOGETHER
MALAYSIA,
BUT DOWNGRADED FROM A2 IN 1989 AND IS NOW A3, THE SAME AS BELOW THAT OF MANY OF OUR COMPETITORS SUCH AS THAILAND, SINGAPORE KOREA.
AND
MR. DEPUTY PRESIDENT, LET ME STRESS THAT THE ADMINISTRATION HAD CONDUCTED THESE NEGOTIATIONS CONSCIENTIOUSLY AND WITH THE INTERESTS OF WE WERE CERTAINLY CONSUMERS VERY MUCH IN THE FOREFRONT OF OUR MIND. AWARE OF THE PUBLIC CONCERNS RELATING TO THIS PARTICULAR SCA, WHICH HAVE BEEN REPEATED DURING THIS DEBATE. I WOULD LIKE WITH THESE VERY BRIEFLY.
MANY OF ΤΟ DEAL
/FIRST, THERE