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WEDNESDAY, MAY 13, 1992
CONSUMER
EDUCATION
"IN THIS CONNECTION, IMPORTANT ROLE TO PLAY, SHE SAID.
EFFORTS HAVE AN
MISS YUE POINTED OUT THAT SECTORS THAT REQUIRED TO OPERATE IN A RESTRICTED COMPETITIVE ENVIRONMENT WERE THE EXCEPTION RATHER THAN THE NORM.
"IN HONG KONG, THE CONSUMER COUNCIL IS CHARGED WITH THE RESPONSIBILITY OF PROTECTING AND PROMOTING THE INTERESTS OF CONSUMERS.
"TOWARDS THIS END, THE CONSUMER COUNCIL HAS CONDUCTED AND WILL CONTINUE TO CONDUCT REGULAR PRICE SURVEYS AS WELL AS MONITORING ANY MONOPOLISTIC TENDENCY IN TRADE PRACTICES, SHE SAID.
MISS YUE SAID MARKET CONCENTRATION IN ITSELF DID NOT NECESSARILY GIVE RISE TO ADVERSE EFFECTS TO CONSUMERS.
"WHERE IT DOES AND WHERE CONSUMERS ARE UNABLE THEMSELVES, THE GOVERNMENT HAS PROVIDED VARIOUS FORMS OF FRAMEWORK THAT ARE BEST SUITED TO THE REQUIREMENTS OF THE SECTOR, SHE SAID.
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TO PROTECT
REGULATORY PARTICULAR
ECONOMY
FOR EXAMPLE, MISS YUE SAID THERE WERE SECTORS IN THE WHICH HAD TO BE OPERATED AT A SUFFICIENTLY LARGE SCALE ΤΟ ATTAIN OPTIMUM USE OF RESOURCES AND ACHIEVE ECONOMIES OF SCALE.
"THERE ARE ALSO OTHERS WHERE IT IS IN THE WIDER INTEREST OF THE COMMUNITY TO PROVIDE FOR COMPETITION IN A CONTROLLED FASHION IN TO ENSURE THAT CONSUMERS RECEIVE AN EFFICIENT AND RELIABLE SERVICE AT A REASONABLE PRICE.
"IN RESPECT OF THESE SECTORS, THE INTERESTS OF CONSUMERS ARE GIVEN DUE REGARD IN THE REGULATORY FRAMEWORKS PUT IN PLACE BY THE GOVERNMENT WHICH, AMONGST OTHER THINGS, LIMIT THE MAXIMUM PERMISSIBLE RATE OF RETURN ON CAPITAL EMPLOYED AND SPECIFY THE MINIMUM STANDARDS OF SERVICES TO BE PROVIDED, SHE ADDED.
COMPETITION
11
OF
MISS YUE FURTHER POINTED OUT THAT ANY ARTIFICIAL INJECTION
WOULD INTO THESE SECTORS THROUGH GOVERNMENT INTERVENTION NOT AUTOMATICALLY LEAD TO CHEAPER PRODUCTS OR BETTER QUALITY SERVICES OR THE MORE EFFICIENT USE OF RESOURCES.
"FURTHERMORE, SUCH ACTION MIGHT RUN THE RISK OF GOVERNMENT HAVING TO PROTECT THE NEW ENTRANTS UNTIL THEY BECOME ESTABLISHED, IF EVER.
SHE SUCH PROTECTION CAN ONLY BE PROVIDED AT TAXPAYERS EXPENSE, SAID.
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MISS YUE TOLD THE COUNCIL THAT IT WOULD BE DIFFICULT TO GENERALISE THE SORT OF CIRCUMSTANCES UNDER WHICH THE GOVERNMENT MIGHT NEED TO CONSIDER INTRODUCING LEGISLATIVE CONTROL ADDING THAT EACH CASE WAS BEST DEALT WITH ON ITS OWN MERITS.
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