WEDNESDAY, APRIL 28, 1993
1
SPEECH BY SECRETARY FOR THE TREASURY, MR K Y YEUNG ON MOTION
ON GOVERNMENT SERVICES FEES AND CHARGES
IN THE LEGISLATIVE COUNCIL
* * * * *
MR PRESIDENT,
INTRODUCTION
FOCUS OF DEBATE
THE PRINCIPAL CONCERN IN THIS DEBATE HAS BEEN THE GOVERNMENT'S POLICY TOWARDS ITS PUBLIC UTILITY OPERATIONS. HONOURABLE MEMBERS HAVE QUERIED THE BASIS FOR THE RATES OF RETURN BARNED BY THESE UTILITIES. THEY HAVE RAISED QUESTIONS ABOUT THE APPROPRIATENESS AND EFFICIENCY OF OUR MONITORING AND ACCOUNTING ARRANGEMENTS. BUT I HAVE ALSO DETECTED TWO, MORE BASIC CRITICISMS. THE FIRST IS THAT THE PHILOSOPHY BEHIND OUR ENTIRE POLICY TOWARDS FEES AND CHARGES IS A SOMEWHAT AD HOC ARRANGEMENT. THE SECOND IS THAT THIS COUNCIL HAS NEVER BEEN PROPERLY AWARE OF THIS POLICY OR PARTY TO IT'S IMPLEMENTATION AND THAT THE PUBLIC HAS SIMILARLY BEEN KEPT IN THE
DARK.
OUTLINE OF SPEECH
2.
I WILL BEGIN THIS EVENING BY SHOWING THAT BOTH THESE CRITICISMS ARE QUITE UNFOUNDED, THAT THE GOVERNMENT HAS FOR MANY YEARS HAD A CLEAR SET OF POLICIES UNDER WHICH THE LEVEL OF GOVERNMENT FRES AND CHARGES IS DETERMINED, AND THAT HONOURABLE MEMBERS HAVE BEEN FULLY AWARE OF BOTH THE PHILOSOPHICAL BASIS FOR OUR STRATEGY AND THE DETAILS OF HOW IT IS IMPLEMENTED. I SHALL GO ON TO SUMMARISE ONCE MORE THE MAIN FEATURES OF OUR FEES AND CHARGES SYSTEM, BEFORE FOCUSING ON GOVERNMENT UTILITY CHARGES AND REFUTING SOME OF THE MISCONCEPTIONS THAT HAVE EMERGED THIS AFTERNOON IN RELATION TO THE TARGET RATES OF RETURN. AGAINST THIS BACKGROUND, I SHALL CONCLUDE BY SETTING OUT THE GOVERNMENT'S POSITION ON THE REVIEW PROPOSED IN MR. POON'S MOTION.
/FEES AND