PERFORMANCE OF OUR PUBLIC UTILITIES

WEDNESDAY, APRIL 28, 1993

19.

IN

MR POON REFERRED IN HIS MOTION TO THE NEED FOR EFFICIENT AND FEES. HIGH-QUALITY SERVICES IN EXCHANGE FOR THE PAYMENT OF REASONABLE

MEMBERS HAVE HONOURABLE BUT CERTAIN CERTAINLY THIS IS

OUR GOAL.

THE IT IS WORTH LOOKING AT IMPLIED THAT WE MAY NOT BE ACHIEVING IT.

WATER SUPPLY. REALITY HOWEVER. WE HAVE A RELIABLE, CHEAP AND CLEAN

THE FASTEST AND LEAST WE IIAVE A POSTAL SERVICE WHICH IS AMONGST

ARE WELL-MAINTAINED, OUR FERRY TERMINALS EXPENSIVE

THE WORLD.

OUR AIRPORT IS, OF CLEAN AND EFFICIENT, AS ARE OUR ROAD TUNNELS.

FORWARD WITH COURSE, REACHING CAPACITY AND WE ARE THEREFORE PUSHING

HANDLE EVER-INCREASING ITS REPLACEMENT. MEANWHILE, IT CONTINUES TO NUMBERS OF PASSENGERS AND QUANTITIES OF FREIGHT, WITHOUT DISRUPTION OR UTILITIES OF NO DELAY.

MR.

I SUGGEST THAT THE PUBLIC PRESIDENT, COUNTRY IN THE FAR EAST, AND FEW IN THE WORLD, CAN BETTER THIS RECORD. OUR PUBLIC UTILITIES ARE WORTH THE MONEY WE PAY FOR THEM.

CONCLUSION

IN

CONCLUSION,

MR PRESIDENT,

OUR SYSTEM FOR APPROVING 20.

OUR ACCOUNTING UTILITY CHARGES HAS A LONG AND RESPECTABLE PEDIGREE. ARRANGEMENTS GENERALLY CONFORM TO STANDARD ACCOUNTING PRACTICE AND ARE WE HAVE OPEN ΤΟ PUBLIC SCRUTINY. AND, AS A RESULT OF THIS SYSTEM,

SERVICES OF A HIGH BEEN ABLE TO PROVIDE THE PUBLIC WITH UTILITY QUALITY AT A LOW COST TO USERS.

21.

I ACCEPT, NEVERTHELESS, THAT THE TIME HAS COME FOR A STUDY TO DETERMINE WHETHER SOME ADJUSTMENTS SHOULD BE MADE TO THE TARGET

FOR INDIVIDUAL

RATES

UTILITIES,

AND

SPECIFIC

ALSO

THE

ADJUSTMENTS TO THESE BASIS ON WHICH THESE RETURNS ARE CALCULATED. TARGETS ARE IN ANY CASE MADE BY THE OPERATING ACCOUNTS COMMITTEES FROM REVIEW TIME TO TIME IN THE LIGHT OF CHANGING CIRCUMSTANCES, AND THIS WILL SERVE AS A USEFUL MECHANISM TO CONSIDER IN ONE PACKAGE AND UPDATE THE TARGETS FOR OUR DIFFERENT UTILITY OPERATIONS. APPROVAL OF EXECUTIVE COUNCIL, THE RESULTS OF THE SHARED WITH THIS COUNCIL IN DUE COURSE.

22.

SUBJECT TO THE REVIEW WILL BE

WILL FOCUS BUT I SHOULD EMPHASISE, MR PRESIDENT, THAT WE

AS HAVE IDENTIFIED

JUSTIFYING CAREFULLY ON

WHICH I THOSE AREAS

IDEAS то IMPROVE DETAILED REVIEW. WE WILL NATURALLY BE OPEN TO

IS FURTHER THE BASIS ON WHICH THE PERFORMANCE OF OUR PUBLIC UTILITIES ASSESSED. BUT WE WOULD BE IRRESPONSIBLE TO SEEK RADICAL CHANGE TO THE COMMUNITY SO UNDERLYING PRINCIPLES OF A SYSTEM WHICH HAS SERVED THE WELL FOR SO LONG. TO UNDERLINE THIS POINT, I WOULD REPEAT THAT ONE OF THAT WE CHARGE TIIE REASONS WE ARE ABLE TO RUN A LOW TAX SYSTEM IS USERS OF OUR SERVICES EXCEPT WHERE GOOD WELFARE OR OTHER REASONS EXIST NOT TO DO SO. NOT TO RECOVER FULL COSTS, AND IN THE CASE OF UTILITY- TYPE OPERATIONS THESE SHOULD INCLUDE AN APPROPRIATE RATE OF RETURN, IS IN EFFECT TO DECIDE TO SUBSIDISE ONE GROUP OF CONSUMERS AT THE EXPENSE AND HENCE TO OF THE TAXPAYERS. WE NEED TO FACE THAT FACT SQUARELY, REQUIRE VERY GOOD JUSTIFICATION FOR DEPARTING FROM FULL COST IN ANY PARTICULAR CASE.

RECOVERY

23.

MR PRESIDENT, TO THE EXTENT QUALIFIED BY THESE REMARKS, OFFICIAL MEMBERS WILL SUPPORT THE MOTION.

THE

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