CO129-616-6 Hotels Ordinance- 1949 21-2-1949 - 21-2-1949 — Page 95

THE HOTELS ORDINANCE, 1949.

ENCLOSURE 2

93

Explanatory observations in accordance with Article XXVIII

of the Royal Instructions.

ins 1.36

(18)

2.

This Ordinance was passed on the 23rd February, 1949.

wat attehad.

The reasons for enacting the Ordinance are briefly stated in

the Objects and Reasons to the Bill. A copy of such Bill is attached on

which are indicated the amendments to the Bill which were effected, as

hereinafter described, at the Committee stage.

3. An historical background exists to the enactment of the

legislation under report. The control of hotel rates is not novel in

Hong Kong. As far back as September, 1946, the Price Control (Hotel

Services) Regulations, 1946, were made as Defence Regulations under

powers conferred by section 2(1) of the Supplies and Services

(Transitional Powers) Act, 1945, as applied to the Colony. Regulation 4

of those Regulations empowered a Competent Authority by Order to fix

maximum charges for all or any hotel services, including the provision

of lodging. In fact, no Order was made under those Regulations for the

reason that the Quartering Authority as Competent Authority found it

possible to apply control of rates by way of a "gentleman's agreement".

This agreement or understanding was entered into by the Competent

Authority with hotel managements at a time when derequisition of hotel

accommodation was taking place. By this means he ensured that hotel

rates would not, for Hong Kong residents, be greater, or not much greater,

than the rates payable while hotels were under requisition. In July,

1948, the Price Control (Hotels) (Control of Charges) Regulations, 1948,

were made in replacement of the Regulations of 1946. The 1948 Regulations

constituted an amplification of the Regulations of 1946 but in

essentials the Regulations of 1948 were the same as those of 1946 in

that the Competent Authority was empowered by Order to fix maximum charges.

At that date, however, the Competent Authority proceeded to make an Order

and he did so because he found that the "gentleman's agreement" was