XN000022-1982-11-24 — Page 12

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WEDNESDAY, NOVEMBER 24, 1982

* EFFICIENCY OF OPERATION;

* REALISTIC AND FLEXIBLE EXPANSION PLAN TO

COPE WITH FORECAST DEMAND;

*

SECURED FUEL SUPPLY AT REASONABLE PRICE;

* PROCUREMENT OF GENERATING PLANT, TRANSMISSION

AND DISTRIBUTION SYSTEM BEARING IN MIND THE OVERALL ECONOMY WITH DUE REGARD TO EFFICIENCY AND COST;

* MINIMUM RISK ON FOREIGN EXCHANGE; AND

* EFFECT ON OPERATION OF THE CHINA LIGHT AND

POWER CO. LTD. ON THE POSSIBLE ESTABLISHMENT

OF HYDRAULIC POWER PLANT AND NUCLEAR POWER PLANT.

+UPON CONCLUSION OF THE INVESTIGATION, THE FINDINGS AND RECOMMENDATIONS OF THIS AD HOC COMMITTEE SHOULD BE MADE PUBLIC.

+ IF AGREEABLE TO ALL SIGNING PARTIES, THE SCHEMES OF CONTROL CAN BE MODIFIED ACCORDINGLY, MR HU SAID,

PUBLICATION OF SCHEMES OF CONTROL +WISE AND TIMELY+

****

THE HON BILL BROWN, WHOSE SPEECH AT THE LEGISLATIVE COUNCIL TODAY WAS DELIVERED BY THE HON PETER C. WONG, DESCRIBED THE GOVERNMENT'S DECISION TO PUBLISH THE SCHEMES OF CONTROL AS A +WISE AND TIMELY MOVE.

IN HIS OPINION, THE SCHEMES ARE TO ENSURE THAT SERVICE TO THE PUBLIC IS ADEQUATE TO MEET DEMAND, IS EFFICIENT AND IS PROVIDED AT THE LOWEST COSTS.

THEY MUST ALSO ENSURE THAT SHAREHOLDERS RECEIVE A RETURN, WHICH IS REASONABLE IN RELATION TO THE RISK INVOLVED AND CAPITAL INVESTED.

+1 BELIEVE THEY ACHIEVE JUST THAT AND IT WOULD BE DIFFICULT TO DEVISE OTHER METHODS WHICH WOULD PRODUCE BETTER RESULTS, HE SAID.

WHILE APPRECIATING THAT CRITICISM MAY BE LEVIED AT THE SCHEMES BY CONSUMERS AND, IN SOME RESPECTS, BY THE COMPANIES THEMSELVES, MR BROWN SAID: +BUT WHICHEVER WAY ONE LOOKS AT IT ANY FAIR MINDED PERSON MUST SURELY AGREE THAT IN HONG KONG WE ENJOY STANDARDS OF SERVICE FROM OUR UTILITIES WHICH COMPARE FAVOURABLY WITH MOST OTHER TERRITORIES BOTH IN TERMS OF RELIABILITY AND COST.+

HE CITED THE TWO POWER COMPANIES AS EXAMPLES, POINTING OUT THAT THE IR CHARGES COMPARED FAVOURABLY WITH THOSE IN KOREA, SINGAPORE, JAPAN, MALAYSIA, THE PHILIPPINES, THAILAND AND TAIWAN,

/QUOTING STATISTICS,