XN000022-1983-05-11 — Page 5

WEDNESDAY, MAY 11, 1983

ON THAT OCCASION, THREE LEGISLATIVE COUNCIL MEMBERS EXPRESSED RESERVATIONS ABOUT THE CONSEQUENCES OF THE INTRODUCTION OF SUCH A TAX, QUESTIONED THE LEVEL OF THE INCREASE OR SUGGESTED THAT THE BURDEN MIGHT BE MORE WIDELY SPREAD, MR BLYE RECALLED.

SIMILAR REPRESENTATIONS WERE MADE BY TRAVEL AGENTS, AIRLINES AND SOME SECTORS OF THE TOURISM INDUSTRY.

DUE ACCOUNT HAD BEEN TAKEN OF ALL THESE AND OTHER POINTS AND MR BREMRIDGE HAD DEALT CAREFULLY AND COMPREHENSIVELY WITH THEM IN CONCLUDING THE DEBATE ON THE APPROPRIATION BILL, MR BLYE SAID.

AT THE END OF THE DEBATE, COUNCIL MEMBERS BROADLY ACCEPTED THAT THE NEW TAX MEASURE WAS NECESSARY, HE ADDED.

UNDER THE BILL, PASSENGERS UNDER 12 YEARS OF AGE WILL PAY $50 AND THOSE UNDER TWO YEARS OF AGE WILL BE EXEMPTED FROM THE TAX.

AMONG OTHER CLAUSES OF THE BILL, ONE CLAUSE PLACES THE DUTY OF COLLECTING THE TAX ON THE OPERATORS OF THE AIRCRAFT ON WHICH THE PASSENGER DEPARTS.

DEBATE ON THE BILL WAS ADJOURNED TILL MAY 25.

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POLICY ON FUEL PRICES EXPLAINED ****

IT IS NOT THE GOVERNMENT'S POLICY TO USE LEGISLATIVE PROVISION TO CONTROL THE PRICE OF PETROL AND FUEL OILS IN NORMAL MARKET CONDITIONS, THE SECRETARY FOR ECONOMIC SERVICES, THE HON PIERS JACOBS SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY),

MR JACOBS WAS REPLYING TO THE HON MARIA TAM, WHO HAD ASKED WHETHER THE GOVERNMENT HAD ANY POWERS OF CONTROL OVER PRICING LEVELS FOR THESE COMMODITIES.

MR JACOBS SAID UNDER SECTION 6 OF THE OIL (CONSERVATION AND CONTROL) ORDINANCE, THE GOVERNMENT HAD THE POWER TO CONTROL THE PRICE OF PETROL AND FUEL OILS WHERE CIRCUMSTANCES SO DICTATED.

THE SECTION EMPOWERED THE DIRECTOR OF OIL SUPPLIES TO GIVE DIRECTIONS REGULATING THE PRICE AT WHICH OIL MIGHT BE SUPPLIED OR SOLD.

+IT IS NOT, HOWEVER, THE GOVERNMENT'S POLICY TO MAKE USE OF THIS PARTICULAR PROVISION IN NORMAL MARKET CONDITIONS.

+THIS IS BECAUSE WE DO NOT BELIEVE IN INTERVENTION IN THE OPERATION OF A FREE MARKET UNLESS THE GOODS OR SERVICES IN QUESTION ARE PROVIDED UNDER CONDITIONS WHERE MARKET FORCES ARE NOT FREE TO OPERATE THAT IS TO SAY WHERE THERE IS A MONOPOLY OR WHERE THE RIGHT TO SUPPLY GOODS OR SERVICES IS RESTRICTED TO HOLDERS OF A FRANCHISE.

+ IN THE CASE OF OIL PRODUCTS, THERE IS NO MONOPOLY, AND THE PRODUCTS ARE NOT SOLD UNDER THE TERMS OF A FRANCHISE,+ HE SAID.

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