CO129-412 - Governor Sir May - 1914 [7-8] — Page 182

BLs -

Enclosure 4.

174

Proceedings of the Legislative Council,

dated 25th June, 1914.

--------

The Hongkong (South) Develop-

ment Scheme

THE moved: --

COLONIAL SECRETARY

That this Council approves the draft agreement laid on the table on the 4th of June, between His Excellency Sir F. H. May, K.C.M.G., Governor of Hong- kong, for and on behalf of the Government of the same (who and whose successors in office are hereinafter referred to as "the Governor "), of the one part, and Messrs. Dennys & Bowley, Solicitors (who and whose assigns are hereinafter called the Promoters), of the other part, with regard to a scheme for the development of a portion of the South of the Island of Hongkong, on condition that the promoters furnish to the Government satisfactury proof of their financial ability to carry out the scheme."

HON. MR. WEI YUK seconded.

HON. MR. LANDALE Sir, I do not wish to

the oppose

granting of this concession,

for I think

if any capitalist can be found to spend the money it entails, it will certainly be to the benefit of the Colony. But there is one clause which directly interferes with the business of two com- panies already established in the Colony: that is, clause 24, which reads, "The promoters shall have the sole right during the said term of 25 years to supply electricity and gas in the areas over which they have an option." This would debar the Hongkong Electric Company and the Hongkong and China Gas Company from operating in the portion of the Colony to which this agreement refers. I do not think that that is a fair stipulation to make. These two companies have been the pioneers of lighting in the Colony, and should not be prohibited from working in any part of its territory. I think that the Government should not grant this concession at the expense of these two companies. It is not in the interest of consumers of light and power

to do so, because it would probably mean that the existing companies eventually supply light and power, but would they would have to pay the promoters of the scheme to be allowed to do so. The inore consumers of light and power there are, the cheaper it

can be supplied, and I think it is A wrong principle to divide the Colony up into areas in a case of this kind. When the Gas Company originally made their agree ment with the Government in 1881 they were given two years in which to begin supplying gas. Now, although the main agreement provides for a term in which this work is to be done, there is no stipulation as regards the lighting of this district. There is no obligation on the part of the promoters to supply light, and the existing companies are lebarred from doing so. It is quite reasonable to allow the promoters the right to supply light and power, but I don't think it is reasonable to debar the existing companies from doing it. I beg to propose that the last paragraph of clause 93, viz: provided that such cables or wires or gas mains and pipes are not to be used for the supply of electricity or was within the & reas in which the promoters have the sole right to supply electricity and gas," and also clause 24 be deleted from the agreement.

HON, MR. SHELLIM-I beg to second the hon, member's proposition.

HIS EXCELLENCY-As regards the remarks which the hon. member has made, and his comments upon this agreement, I cannot agree with a good deal of what he says. The institution of a monopoly really on the part of the companies might be induced, and monopolies are abhorrent not only to the official but I believe to the unofficial mind. Still, there are some points which require a little further consideration, particularly with regard to the period within which the right referred to ought to be exercised, and as the point is not urgent I propose to hold over this agreement until the next meeting.