COMPARISON WITH THE PRIVATE SECTOR
WEDNESDAY, APRIL 28, 1993
18.
PROBABLE TRAFFIC THAT, IN
RATES OF CERTAIN
ASK THEM INVESTORS
I
FINALLY
ΤΟ
-
IS
I
BY PRIVATE APPROVALS
ΤΟ
WHICH I TERMS,
THE
CERTAIN HONOURABLE MEMBERS HAVE TAKEN THIS
ΤΟ OPPORTUNITY
RUN BY REMIND ME AGAIN THAT THERE ARE DIFFERENCES BETWEEN UTILITIES THE
AND GOVERNMENT
THOSE IN PRIVATE OWNERSHIP. WE HAVE ALWAYS THAT RECOGNISED
THIS IS THE CASE. IN THE CASE OF GOVERNMENT OF UTILITIES, IT IS FOR THIS REASON THAT CRITERIA OTHER THAN THE RATE
LEVEL RETURN ARE ALSO TAKEN INTO ACCOUNT IN MAKING ADJUSTMENTS TO THE
CHARGES. OF
THESE CRITERIA INCLUDE THE LIKELY IMPACT ON INFLATION,
FOR PUBLIC REACTION AND CONSIDERATIONS OF POLICY
EXAMPLE, IT
TRUE MANAGEMENT CONTROL IN THE CASE OF ROAD TUNNELS.
THE ACTUAL SETTING OUR TARGET RATES, WE TAKE INTO ACCOUNT RETURN EARNED BY MAJOR PRIVATE UTILITIES IN HONG KONG. HONOURABLE MEMBERS HAVE QUESTIONED THE RELEVANCE OF THIS.
INTEREST TO CONSIDER THE LIKELIHOOD OF FUTURE IN INFRASTRUCTURE PROJECTS INVOLVING THE REGULAR OF FEES BY THIS COUNCIL, IF HONOURABLE MEMBERS SHOW ANY RELUCTANCE
THE IN A FINANCIALLY PRUDENT MANNER IN RELATION TO ACT
GOVERNMENT'S
OWN UTILITIES.
MR PRESIDENT SOME HONOURABLE MEMBERS HAVE FOCUSED ON INDIVIDUAL UTILITY CHARGES OR IN PARTICULAR DEPARTMENTAL FEES. I DON'T WISH TO PRE-EMPT THE OUTCOME OF THE REVIEW TO
RETURN WOULD
IN A MINUTE BY GOING INTO DETAIL. IN
GENERAL
HOWEVER,
CAN AGREE THAT IT IS IMPORTANT FOR US
RECOGNISE
BETWEEN DIFFERENCE
THE CIRCUMSTANCES OF INDIVIDUAL UTILITIES, FOR WATER EXAMPLE, WE HAVE TAKEN A CONSCIOUS DECISION TO SUBSIDISE BASIC
CIRCUMSTANCES USERS BY A CONTRIBUTION FROM GENERAL RATES. THE SPECIAL
SECRETARY OF THE POST OFFICE WAS EXPLAINED IN DETAIL BY MY COLLEAGUE,
IT FOR ECONOMIC SERVICES, EARLIER THIS AFTERNOON. AS FOR THE AIRPORT,
OF RETURN IN IS TRUE THAT WE HAVE ACHIEVED A RELATIVELY HIGH RATE RECENT YEARS. BUT IT IS ALMOST ENTIRELY DUE TO THE OPERATION OF OUR DUTY FREE SHOP. AND THE ASSET BASE ON WHICH THE RETURN FOR THE AIRPORT IS
CAPITAL CALCULATED DOES NOT AT PRESENT INCLUDE THE VALUE OF THE WORKS AT CHEP LAP KOK. AS FOR THE MTRC AND KCRC, BOTH OF WHICH REALLLY
THESE FALL OUTSIDE THE SCOPE OF THIS EVENING'S DEBATE.
CORPORATIONS
FALL OUTSIDE OUR
BUT GENERAL FEES AND CHARGES POLICY.
WE MUSTN'T
FORGET
THEY WERE CREATED BY THIS COUNCIL AS COMMERCIAL OPERATIONS. BOTH CORPORATIONS IN FACT INCREASE THEIR FEES IN LINE WITH NOT (REPEAT OPERATING COSTS. AND FEE INCREASES IN RECENT YEARS HAVE
EVEN NOT)
KEPT PACE WITH THE GROWTH RATE OF CONSUMER INFLATION, NEVERTHELESS, I HAVE TAKEN ON BOARD HONOURABLE MEMBERS' CONCERNS REMARKS. AND WHILE THE FEES CHARGED BY STATUTORY CORPORATIONS DO FALL WITHIN THE SCOPE OF OUR PROSPECTIVE REVIEW, THE GOVERNMENT MAINTAIN ITS EFFORTS TO MONITOR THEIR REASONABLENESS AND AFFORDABILITY TO THE GENERAL PUBLIC.
THAT
AND
NOT
WOULD
/PERFORMANCE OF