XN000022-1982-11-24 — Page 7

WEDNESDAY, NOVEMBER 24, 1982

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STANDING COMMISSION ON POWER COMPANIES RULED OUT

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THE SECRETARY FOR ECONOMIC SERVICES, THE HON PIERS JACOBS TODAY (WEDNESDAY) REJECTED PROPOSALS FOR THE ESTABLISHMENT OF A STANDING COMMISSION OR A COMMISSION OF INQUIRY IN RELATION TO THE POWER COMPANIES.

HE HAS, HOWEVER, GIVEN AN UNDERTAKING TO LOOK AT THE IDEA OF THE APPOINTMENT OF INDEPENDENT PROFESSIONALS TO EXAMINE EXISTING MONITORING ARRANGEMENTS TO SEE WHETHER THEY ACCOMPLISH THE PURPOSES FOR WHICH THEY ARE DESIGNED, ALTHOUGH, HE ADDED, IT MAY BE THAT ON CLOSER EXAMINATION THE IDEA WILL BE FOUND TO BE IMPRACTICABLE.

SPEAKING IN THE LEGISLATIVE COUNCIL, MR JACOBS SAID THE THREE PROPOSALS WERE DISCUSSED DURING A MEETING HE HELD WITH REPRESENTATIVES OF THE FEDERATION OF HONG KONG INDUSTRIES AND THE CHINESE MANUFACTURERS ASSOCIATION LAST MONDAY.

ON THE PROPOSAL FOR A STANDING COMMISSION, HE SAID THAT AS THE TERM WAS UNDERSTOOD, IT WOULD MEAN A PERMANENT COMMISSION WHICH WOULD PLAY AN ACTIVE ROLE IN RELATION TO THE MONITORING OF THE POWER COMPANIES.

MR JACOBS SAID HE HAD MADE IT CLEAR AT THE MEETING THAT HE DID NOT SUPPORT THIS PROPOSAL.

+AS MR PETER WONG HAS ALREADY POINTED OUT, SUCH A STANDING COMMISSION WOULD DUPLICATE THE WORK THAT IS ALREADY BEING DONE BY THE ADMINISTRATION, HE SAID.

A STANDING COMMISSION WOULD HAVE TO BE BACKED BY A SECRETARIAT AND PROFESSIONAL AND TECHNICAL SERVICES AND THIS WOULD BE VERY COSTLY, HE ADDED.

+MOREOVER, WHATEVER TERMS OF REFERENCE MAY BE DEVISED FOR A STANDING COMMISSION TODAY, IT IS INEVITABLE THAT THAT COMMISSION, OVER THE COURSE OF TIME, WOULD NOT BE ABLE TO AVOID BECOMING

INVOLVED IN SUPERVISING THE MANAGEMENT OF THE COMPANIES.+

+THIS INVOLVEMENT WOULD DILUTE AND CONFUSE THE RESPONSIBILITY OF THE MANAGEMENT AND ALMOST CERTAINLY LEAD TO LESS RELIABLE SERVICES AT AN INCREASED COST.+

ON THE SECOND PROPOSAL MR JACOBS SAID IN GENERAL TERMS A COMMISSION OF ENQUIRY MIGHT BE APPROPRIATE WHERE THERE WAS CLEARLY SOMETHING WRONG, AND A PUBLIC ENQUIRY AT WHICH EVIDENCE COULD BE GIVEN WAS THE ONLY METHOD OF ESTABLISHING THE FACTS.

+BUT AS IT WAS AGREED AT THE MEETING THAT THE POWER COMPANIES PROVIDE A RELIABLE SERVICE AND THIS HAS BEEN REPEATED BY SEVERAL MEMBERS TODAY THERE IS IN MY VIEW NO CASE WHATSOEVER FOR THE ESTABLISHMENT OF A COMMISSION OF ENQUIRY IN RELATION TO THE PERFORMANCE OF THE POWER COMPANIES.+

HE SAID WHAT WAS BASICALLY AT ISSUE AT THE MEETING WAS THE LEVEL OF TARIFFS AND OTHER ASPECTS OF THE FINANCING PLANS AND THE TERMS OF THE SCHEMES OF CONTROL.

/+1 MUST

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