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"Price competition was allowed before 1980. No evidence has been submitted of any disastrous consequences before then. And if price competition before 1980 amounted to a time bomb, why hasn't it exploded by now?" he asked.

Calling scale fees an unfair system, Mr Allcock said it is self-evident that they are anti-competitive.

"They deny consumers the benefit of price competition. Moreover, under the system, fees are based on the price of property, not the value of the work done. This is irrational and unfair to consumers. The unfairness is increased by the fact that when property prices rise, as they are now, there is a rise in conveyancing fees, even though the work done remains the same."

Furthermore, the Administration's view on the best approach to abolish scale fees is that one has to decide whether or not they are in the public interest. "If they are not, it is no use tinkering with them. You either have them or you don't have them. Tinkering will not alter the fact that the scales are still in place," he said.

End

Defence Secretary visits Hong Kong

The Rt Hon Michael Portillo MP, Secretary of State for Defence, is to visit Hong Kong tomorrow (Wednesday).

This is part of a regular series of visits which the Secretary of State makes to British Forces stationed around the world and it will be the first time Mr Portillo visits the Hong Kong Garrison.

Mr Portillo will first visit Headquarters British Forces, where he will inspect a ceremonial Quarter Guard drawn from 1st Battalion The Black Watch.

He will then be brought up to date on the situation in the territory and progress of the Garrison's withdrawal plans. He will also be briefed on arrangements for the transition to the Chinese sovereignty and, in particular, on the pivotal role British Forces will play in the handover ceremonies on June 30.

The Secretary of State will tour Royal Navy, Army and Royal Air Force units, which form the Garrison, and meet personnel of all three services.

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