XN000022-1979-03-29 — Page 4

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THURSDAY, MARCH 29, 1979

GOVERNMENT-OWNED PUBLIC UTILITIES

MISS DUNN SAID CONSUMERS MUST BE SATISFIED THAT THEY ARE GETTING VALUE FOR MONEY IF THEY ARE CHARGED THE FULL COST UNDER THE GOVERNMENT'S NO-SUBSIDY PRINCIPLE IN THE OPERATION OF ITS PUBLIC UTILITY UNDERTAKINGS.

SHE WAS DISAPPOINTED THAT THE NOTIONAL ACCOUNTS, SAID TO DEMONSTRATE THE TRUE PROFIT AND LOSS POSITION OF EACH UNDERTAK ING AND THE RETURN ON AVERAGE NET FIXED ASSETS EMPLOYED, WERE NOT INCLUDED IN THE BUDGET PAPERS.

SHE ASKED IF THE GOVERNMENT IMPOSES ON ITSELF A RATIONAL SCHEME OF CONTROL AS IT DOES ON PRIVATELY-OWNED UTILITIES. SHE ASKED THE GOVERNMENT TO DISCLOSE THE RATES OF RETURN ON NET FIXED ASSETS EMPLOYED, AND HOW IT ARRIVES AT THESE RATES.

SHE WANTED TO KNOW HOW WELL THE GOVERNMENT IS MANAGING THESE FACILITIES TO ENSURE MAXIMUM EFFICIENCY AND COURTEOUS SERVICE ON A PAR WITH ITS COUNTERPARTS IN THE PRIVATE SECTOR.

SHE ALSO ASKED HOW THE RESPONSIBLE GOVERNMENT DEPARTMENTS, LIKE THE PRIVATE-OWNED UTILITIES COMPANIES, ANTICIPATE OVERALL DEMAND, MAKE INVESTMENT DECISIONS TO CATER FOR THAT DEMAND, AND TO REMA IN TECHNICALLY UP-TO-DATE.

LAND POLICY

MISS DUNN POINTED OUT THAT OF THE 2,374 HECTARES OF LAND TO BE PRODUCED BY 1982-83, ONLY 715 HECTARES, OR 30 PER CENT WILL BE AVAILABLE FOR INDUSTRIAL AND PRIVATE NON-INDUSTRIAL USE. THE POSITION AFTER 1982-83 IS NO BETTER IN THAT ONLY 252 HECTARES, OR 34 PER CENT OF THE TOTAL TO BE PRODUCED, ARE DESIGNATED FOR SUCH USE.

THE GOVERNMENT ADMITS THAT IT HAS INEVITABLY INFLUENCED LAND PRICES, BUT APPEARS TO OFFER LITTLE TO ALLEVIATE CURRENT SPIRALLING LAND PRICES AND SPECULATIVE ACTIVITIES IN PROPERTY, SHE SAID.

SHE AGREED THAT THE FINAL SOLUTION LIES IN MORE LAND BE ING PROVIDED, BUT THIS WILL NOT HAVE EFFECT ON PRICES OR HELP TO SATISFY DEMAND IF MOST OF THE LAND PRODUCED IS TAKEN UP BY THE GOVERNMENT.+

SHE THOUGHT THE GOVERNMENT'S LAND DISPOSAL POLICY, AS WELL AS ITS NON-INTERVENTIONIST POLICY OF SELLING TO THE HIGHEST BIDDER, MUST BE REVIEWED, UNLESS IT IS IN A POSITION TO PRODUCE SUFFICIENT LAND TO SATISFY PRIVATE DEMAND AS OPPOSED TO ITS OWN REQUIREMENTS.

SHE FURTHER SUGGESTED THAT THE GOVERNMENT SHOULD CONSIDER SETTING UP A SINGLE LAND DEPARTMENT.

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