XN000022-1982-11-24 — Page 16

WEDNESDAY, NOVEMBER 24, 1982

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FURTHER CALL FOR TRIPARTITE COMMISSION+

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THE HON ALLEN LEE, ON BEHALF OF MEMBERS OF THE FEDERATION OF HONG KONG INDUSTRIES, AGAIN URGED THE GOVERNMENT TO SET UP A TRIPARTITE COMMISSION TO REVIEW THE SCHEMES OF CONTROL SO AS TO ENSURE THAT THE SHAREHOLDERS' INTERESTS ARE ACCOUNTED FOR AND THE CONSUMERS' INTEREST ARE PROTECTED.

THE COMMISSION, HE SAID, SHOULD CONSIST OF GOVERNMENT OFFICIALS, REPRESENTATIVES FROM THE POWER COMPANIES AS WELL AS THE GENERAL PUBLIC.

AS STATED IN THE SCHEMES OF CONTROL THAT EACH OF THE COMPANIES AND THE GOVERNMENT WILL HAVE THE RIGHT TO REQUEST MODIFICATION BEFORE THE END OF SEPTEMBER NEXT YEAR, MR LEE FELT THAT THE COMMISSION CAN ONLY SERVE ITS PURPOSE IF IT IS SET UP URGENTLY.

+! AM FULLY AWARE OF THE IMPORTANCE OF HONG KONG'S CREDIBILITY WITH REGARD TO THE INTERNATIONAL FINANCIAL COMMITMENTS, HE SAID.

+ON THE OTHER HAND, IF IT CAN BE GUARANTEED THAT THE PAYMENT SCHEDULE OF THE LONG TERM LOANS OF THE POWER COMPANIES WILL BE MET AND THAT THE PURPOSES MENTIONED ABOVE CAN BE ACHIEVED, I SEE NO REASON FOR THE GOVERNMENT'S REFUSAL TO SET UP A COMMISSION.+

EARLIER IN HIS SPEECH, MR LEE QUESTIONED WHETHER THE CONSUMERS' INTEREST WOULD BE PROTECTED UNDER THE CURRENT SCHEMES OF CONTROL.

HE ALSO WONDERED WHAT WOULD HAPPEN TO TARIFF IF THE PROJECTION OF INCREASE CONSUMPTION IS OVERLY OPTIMISTIC.

BASED ON SOME INFORMATION ON CAPITAL EXPANSION PLAN OF CHINA LIGHT, HE GUESSED THAT PROF IT ON YEAR TO YEAR BASIS WOULD BE INCREASED BY A LARGE PERCENTAGE AND TARIFF INCREASES EVERY YEAR WAS INEVITABLE.

QUOTING STATISTICS, HE SAID THE NET RETURN FOR CHINA LIGHT INCREASED FROM $238 MILLION IN 1978 TO $919 MILLION IN 1982.

ON YEAR TO YEAR, INCREASE OF NET RETURN PERCENTAGE FROM 1978 TO 1982 WAS 34, 50, 45, AND 31 PER CENT RESPECTIVELY, AND THE AVERAGE NET FIXED ASSETS DURING THE SAME PERIOD INCREASED FROM $1 863 MILLION TO $9 290 MILLION.

+CHINA LIGHT HAS PROUDLY ANNOUNCED THAT THE CHINA LIGHT GROUP'S POWER STATIONS AND TRANSMISSION NETWORK REPRESENT THE SINGLE LARGEST PRIVATE INVESTMENT EVER MADE IN HONG KONG, AND FROM 1978-1992, IT IS $45 BILLION.

+BUT IT DID NOT MENTION THAT YOU ARE GOING TO PAY FOR IT'.*

MR LEE AGREED THAT BECAUSE OF THE LARGE AMOUNT OF MONEY INVOLVED IN THE CAPITAL INTENSIVE INDUSTRY, A REASONABLE RETURN SHOULD BE EXPECTED.

/HE RECALLED