XN000022-1985-03-13 — Page 13

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WEDNESDAY, MARCH 13, 1985

MR JACOBS ADDED THAT THE ANNUAL REVIEW PROCESS WAS ALSO FOUND TO BE COMPREHENSIVE AND HAD FULFILLED THE REQUIREMENTS SET DOWN IN THE SCHEME OF CONTROL ARRANGEMENTS.

+TO THIS END I BELIEVE THAT THE CONSULTANTS' REPORT SHOULD GIVE CONSIDERABLE ASSURANCES TO THE PUBLIC THAT THE MONITORING PROCESS SO FAR HAS BEEN PROPER AND ADEQUATE, HE SAID.

BUT WHILE THIS WAS SO, MR JACOBS SAID, THE GOVERNMENT HAD ASKED THE CONSULTANTS FOR SUGGESTIONS AS TO HOW THE MONITORING ARRANGEMENTS COULD BE FURTHER IMPROVED IN FUTURE.

IT HAD AS A RESULT BEEN RECOMMENDED THAT EXISTING PROCEDURES SHOULD BE PLACED ON A MORE FORMAL BASIS AND THAT A TASK FORCE BE SET UP TO OVERSEE IMPLEMENTATION. A TASK FORCE WILL BE FORMED AND WILL BE CHARGED WITH DRAWING UP THE RECOMMENDED FORMAL PROCEDURES.

MR JACOBS SAID ERNST AND WHINNEY HAD COMMENDED THE GOVERNMENT'S PROGRAMME FOR MONITORING IN THE FIELD OF SYSTEM PLANNING AND LOAD FORECASTING, AND SUGGESTED THAT THE TECHNICAL CONSULTANTS COMMISSIONED FOR SYSTEM PLANNING BE RETAINED TO EXAMINE THE TECHNICAL ASPECTS OF FUTURE FINANCING PLAN SUBMISSIONS.

+WE WELCOME THESE RECOMMENDATIONS, HE SAID.

THE REPORT ALSO EXAMINED THE MONITORING OF THE OPERATIONAL ASPECTS OF THE POWER COMPANIES' ACTIVITIES. THE SECRETARY FOR ECONOMIC SERVICES SAID THE FULL IMPLEMENTATION OF THE RECOMMENDATIONS WOULD RESULT IN A MUCH GREATER LEVEL OF GOVERNMENT INVOLVEMENT IN THE AFFAIRS OF THE POWER COMPANIES THAN AT PRESENT.

IT WOULD BE IMPORTANT TO DRAW A LINE BETWEEN THE MONITORING PROCESS ITSELF AND INTERFERENCE IN THE COMPANIES' INTERNAL MANAGEMENT, HE SAID.

MR JACOBS GAVE HIS ASSURANCE THAT HE WOULD INFORM THE EXECUTIVE COUNCIL IN 12 MONTHS OF THE PROGRESS MADE AND THE CONCLUSIONS REACHED.

MR JACOBS SAID THAT IN THE COURSE OF THE REVIEW THE CONSULTANTS EXAMINED LONGER TERM CONSIDERATIONS AND THE NEGOTIATING POSITION OF THE GOVERNMENT VISA VIS THE COMPANIES. WHILE NO FIRM RECOMMENDATIONS WERE PUT FORWARD, IT WAS INTENDED TO GIVE THE VARIOUS POINTS MADE FURTHER CONSIDERATION.

MR JACOBS SAID: +WE CONSIDER THAT OUR MONITORING ARRANGEMENTS HAVE PROVIDED PROPER AND ADEQUATE SAFEGUARDS. BUT WE HAVE ALWAYS SOUGHT TO IMPROVE OUR PROCEDURES, AND THE CONSULTANTS' RECOMMENDATIONS WILL ASSIST US IN THIS PROCESS.

NEVERTHELESS, HE CAUTIONED THAT THE BENEFITS TO CONSUMERS MUST BE COMMENSURATE WITH THE COST OF MAKING THE IMPROVEMENTS.

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