Wednesday, November 14, 1973
PRICE CONTROLS MAY RESULT IN SHORTAGES
Price controls are unlikely to be of much help to counter the
high cost of living and will result in shortages and black markets, the
Hon. P.G. Williams said in Legislative Council today.
"Indeed, in my view, it is the marketing skill and initiative of
the Hong Kong businessman which will bring down prices by seeking out new
supplies and bringing them to market," he added.
He thought it was justifiable, however, that the government took
astion when there was monopoly and restricted supply, as in the utility
field and rents,
He pointed out that Hong Kong would have a period of sharply
rising wages to meet rising prices, but he was not over-much worried about
imported inflation.
"This may affect our competitive position, but imported inflation
reflects a general world inflation and our relative position may not be
greatly changed,
"There is another side to the coin. Inflation is change and I
believe that we have the ability to take advantage of change quicker than
others," he explained.
"Also, the present world inflation is a consequence of sustained
world demand for consumer goods and here lies assurance of an outlet for
our products," he added.
/Mr. Williams
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