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WEUNCODAT, FIARUM 27,

RENEWED CALL FOR INDEPENDENCE

OF GOVERNMENT UTILITY UNDERTAKINGS

******

UNOFFICIAL LEGISLATIVE COUNCILLOR THE HON. LI FOOK-WO, HAS CALLED AGAIN ON THE GOVERNMENT TO TURN SOME OF ITS UTILITY UNDERTAKINGS INTO INDEPENDENT CORPORATIONS, WITH GOVERNMENT OFFICIALS NOMINATED TO THEIR BOARDS.

SPEAKING AT THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, MR. LI ALSO URGED THE GOVERNMENT TO BEGIN ASSESSING THE IMPLICATIONS OF ITS PRICING POLICY FOR HONG KONG'S SYSTEM OF FINANCIAL ADMINISTRATION, AND FOR THE ORGANISATION OF ITS

INTERNAL ADMINISTRATION AS A WHOLE.

THE UNDERTAKINGS MR. LI THOUGHT COULD BE RE-CONSTITUTED ARE THE WATERWORKS, THE POST OFFICE, THE AIRPORT, THE KOWLOON- CANTON RAILWAY AND THE LION ROCK TUNNEL.

HE SAID THE RESOURCES INVOLVED ARE LARGE, BUT THAT ALONE SHOULD NOT RULE OUT MY PROPOSAL SINCE THE ASSETS PLACED AT THE DISPOSAL OF THE MASS TRANSIT RAILWAY CORPORATION ALREADY AMOUNT TO 31,142 MILLION, NOT INCLUDING CONTINGENT LIABILITIES ARISING FROM GOVERNMENT GUARANTEES FOR ITS LOANS.

MR. LI SAID ANY HIVING OFF OF PUBLIC ENTERPRISES WOULD HAVE STAFF IMPLICATIONS, INCLUDING THE TRANSFER OF CIVIL SERVANTS TO THE NEW CORPORATIONS, BUT THE CIVIL SERVICE WOULD BE REDUCED TO MORE MANAGEABLE PROPORTIONS.

+THIS WOULD IN TURN LEAD TO GREATER PRODUCTIVITY, WITH THE TAXPAYER GETTING VALUE FOR HIS MONEY,+ MR. LI SAID.

HE SAID HE HAD ADVOCATED THIS IDEA WHEN SPEAKING ON THE 1976 BUDGET, BUT THE SUGGESTION WAS DISMISSED OUT OF HAND BY THE FINANCIAL SECRETARY.

MR. LI POINTED OUT, HOWEVER, THAT WHEN THE FINANCIAL SECRETARY DELIVERED HIS BUDGET THIS YEAR HE REFERRED TO THE PRICING POLICY WHICH MUST BE ADOPTED FOR GOVERNMENT OWNED AND OPERATED PUBLIC UTILITY UNDERTAKINGS. THIS POLICY IS, ACCORDING TO THE FINANCIAL SECRETARY, THAT CONSUMERS - BE THEY INDIVIDUALS OR TRADES AND INDUSTRIES - SHOULD BE CHARGED THE FULL COST OF THE RESOURCES CONSUMED BY EACH UNDERTAKING UNLESS CONSCIOUS POLICY DECISIONS DICTATE OTHERWISE ON SOCIAL OR POLITICAL GROUNDS.

+SUCH A PRICING POLICY IS IN ACCORDANCE WITH COMMERCIAL PRACTICE IN THE PRIVATE SECTOR, R. LI HOTED.

REFERRING TO THE EUDGET, HR. LI CONGRATULATED THE FINANCIAL SECRETARY FOR HIS PRESENTATION OF HONG KONG'S FIRST $10,000 MILLION BUDGET FOR THE NEXT FINANCIAL YEAR, AND ITS FIRST $1,000 MILLION SURPLUS FOR THE CURRENT YEAR. HE HAS SURPASSED ALL RECORDS,+R. LI SAID.

/ON THE SEVEN

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