XN000022-1985-02-06 — Page 26

WEDNESDAY, FEBRUARY 6, 1985

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SHE SAID THAT THE TAX STRUCTURE HAD TO BE SIMPLE AND REASONABLE IF HONG KONG WAS TO BE REGARDED AS AN INTERNATIONAL FINANCIAL CENTRE.

+ IT IS THEREFORE IMPORTANT THAT OUR TAX LAWS MUST BE FAIR AND EQUITABLE.

+1 HAVE RESERVATIONS ON WHETHER THE PROPOSED BILL CAN MEET THIS CRITERIA.

+IN VIEW OF THIS, I OBJECT TO THE MOTION,+ SHE SAID.

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NO MORE PLANS FOR CONTROL ***

THERE WERE NO PLANS TO BRING MORE PUBLIC UTILITIES UNDER SCHEMES OF CONTROL, THE SECRETARY FOR ECONOMIC SERVICES, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN REPLY TO A QUESTION BY THE HON ANDREW SO, MR JACOBS SAID SCHEME OF CONTROL AGREEMENTS HAD BEEN ENTERED INTO WITH SEVEN COMPANIES AND THE IR ASSOCIATES IN RELATION TO PUBLIC UTILITY SERVICES.

THE COMPANIES INVOLVED HAD BEEN EARLIER NAMED IN THE LEGISLATIVE COUNCIL AND THE EFFECTIVE PERIODS OF THE SCHEMES OF CONTROL HAD BEEN SET OUT IN THE RELEVANT AGREEMENTS, HE SAID.

HOWEVER, A NUMBER OF PUBLIC UTILITIES DEPENDING ALSO ON PRECISE DEFINITION - WERE NOT SUBJECT TO SCHEMES OF CONTROL, MR JACOBS SAID. THESE INCLUDED THE MASS TRANSIT RAILWAY, THE KOWLOON-CANTON RAILWAY, THE WATERWORKS, THE TWO FERRY COMPANIES, HONG KONG TRAMWAYS, THE PEAK TRAM AND THE NEW LANTAO BUS COMPANY.

IN RELATION TO THESE PUBLIC UTILITIES, MR JACOBS SAID, THERE WAS ADEQUATE CONTROL OVER FARES OR CHARGES EITHER THROUGH LEGISLATIVE PROVISION OR UNDER THE TERMS OF THE RELEVANT FRANCHISE.

+THE HONG KONG AND CHINA GAS COMPANY LTD DOES NOT OPERATE UNDER EITHER A SCHEME OF CONTROL OR FRANCHISE BECAUSE ITS SERVICES ARE NOT PROVIDED IN A MONOPOLY OR QUASI-MONOPOLY SITUATION, + HE SAID.

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