XN000022-1975-08-13 — Page 5

WEDNESDAY, AUGUST 13, 1975.

GAS COMPANY TO GET MONOPOLY OVER PIPED GAS SUPPLY

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THE GOVERNMENT INTENDS TO GRANT AN EXCLUSIVE FRANCHISE TO THE HONG KONG AND CHINA GAS COMPANY LTD. TO SUPPLY PIPED GAS TO PREMISES THROUGHOUT HONG KONG, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, ANNOUNCED TODAY.

+DISCUSSIONS WITH THE COMPANY ON THE TERMS AND CONDITIONS UNDER WHICH SUCH A FRANCHISE SHOULD BE GRANTED HAVE NOW, TO ALL INTENTS AND PURPOSES, LELN COMPLETED,+ HE TOLD COUNCIL ÎN REPLY TO A QUESTION FROM THE HON. HILTON CHEONG-LEEN.

MR. HADDON-CAVE EXPECTED THAT A BILL ENSHRINING THE FRANCHISE WOULD BE INTRODUCED IN THE LEGISLATIVE COUNCIL EARLY IN THE NEW SESSION, SUBJECT TO THE ADVICE OF THE GOVERNOR-IN-COUNCIL.

THE FINANCIAL SECRETARY EXPLAINED THAT IN RETURN FOR THE GRANT OF AN EXCLUSIVE FRANCHISE, THE COMPANY WOULD BE 'REQUIRED TO ACCEPT THE CONTROL OF ITS TARIFFS BY THE GOVERNMENT.

+IT WOULD ALSO BE EXPECTED TO COMPLY WITH CERTAIN SAFETY AND MAINTENANCE STANDARDS AND TO ACCEPT AN OBLIGATION TO PROVIDE AND MAINTAIN AN EFFICIENT SUPPLY OF PIPED GAS WHEREVER IT IS REQUIRED.

+WHILST THE POSITION OF ALL EXISTING LIQUEFIED PETROLEUM GAS INSTALLATIONS WOULD BE PROTECTED, THE INTENTION IS THAT, IN RETURN FOR THE GRANT OF A FRANCHISE FOR THE SUPPLY OF PIPED GAS, THE SIZE OF FUTURE L.P.G. INSTALLATIONS WOULD BE RESTRICTED TO SAFEGUARD THE COMPANY'S ENFRANCHISED POSITION,+ HE SAID.

IN ANSWER TO A SUPPLEMENTARY QUESTION FROM DR. CHUNG, THE FINANCIAL SECRETARY GAVE AN ASSURANCE THAT IN CONSIDERING" CRANTING AN EXCLUSIVE FRANCHISE TO HONG KONG AND CHINA GAS COMPANY THE GOVERNMENT WOULD SAFEGUARD THE INTERESTS OF TOWN GAS AND LIG CONSUMERS.

ASKED HOW LONG THE DISCUSSIONS WITH THE COMPANY HAD LASTED, THE FINANCIAL SECRETARY SAID: +APPROXIMATELY 30YEANS.+

WHEN THE BILL IS PUBLISHED, HE ADDED, THE PUBLIC WOULD HAVE EVERY OPPORTUNITY 10 COMMENT ON THE DESTRABILITY FOR GRANTING THE COMPANY AN EXCLUSIVE FRANCHISE.

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