XN000022-1985-03-27 — Page 25

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WEDNESDAY, MARCH 27, 1985

THIS WOULD HELP TO REMOVE EXISTING ANOMALIES AND TO RELIEVE CONSUMERS OF THEIR WORRIES, HE SAID.

ON THE EXISTING POLICIES TOWARDS PUBLIC UTILITIES, MR SO NOTED THAT THERE WERE SEVEN COMPANIES WHICH HAD ENTERED INTO SCHEME OF CONTROL AGREEMENTS WITH THE GOVERNMENT WHILE OTHERS WERE UNDER THE CONTROL OF LAW OR FRANCHISE CLAUSES.

+HOWEVER IT SEEMS THAT THERE ARE NO CRITERIA GOVERNING THE GOVERNMENT'S DECISION ON WHICH COMPANIES SHOULD BE BROUGHT UNDER A SCHEME OF CONTROL OR BE GRANTED A FRANCHISE, HE SAID.

HE CITED AS AN EXAMPLE THAT NEITHER THE CABLE AND WIRELESS (HONG KONG) LIMITED NOR THE HONG KONG AND CHINA GAS COMPANY LIMITED WAS UNDER A SCHEME OF CONTROL THOUGH THEY WERE PRIMARILY OPERATING ON A MONOPOLY AND SEMI-MONOPOLY BASIS.

+AS THE HONG KONG TELEPHONE COMPANY LIMITED HAS BEEN REQUIRED TO OPERATE ON A FRANCHISED BASIS, WHY HAS IT NOT BEEN SO WITH THE CABLE AND WIRELESS (HONG KONG) LIMITED?+ HE ASKED.

*THESE ANOMALIES AND THE DEALINGS BETWEEN UTILITY COMPANIES AND THE IR ASSOCIATED AND SUBSIDIARY COMPANIES ARE ALL VERY PUZZLING, HE SAID.

MR SO SAID THAT GOVERNMENT HAD A SET OF GUIDELINES GOVERNING THE CHARGES OF THE PUBLIC UTILITY COMPANIES, THE PRINCIPAL ONE BEING THAT CHARGES MUST BE ABLE TO COVER OPERATING COSTS.

+HOWEVER, THERE ARE NO STANDARD RULES FOR DETERMINING WHICH AUTHORITY SHOULD DETERMINE OR APPROVE CHARGES, HE SAID.

HE NOTED THAT SOME COMPANIES HAD TO SEEK THE APPROVAL OF THE EXECUTIVE COUNCIL OR A GOVERNMENT DEPARTMENT ON MATTERS CONCERNING THEIR CHARGES WHILE ON THE OTHER HAND, THE BOARDS OF DIRECTORS OF SOME COMPANIES WERE EMPOWERED TO REVISE CHARGES FOR THEIR SERVICES.

+SUCH BEING THE SITUATION, THERE IS NO WONDER THAT SOME INTERESTED BODIES AND PRESSURE GROUPS FIND THEMSSELVES ALWAYS 'CLAMOURING AT THE WRONG DOORS OR PETITIONING THE WRONG DEPARTMENTS, HE SAID.

AS FOR THE MOST CONTENTIOUS ISSUE OF +PERMITTED RETURN+, MR SO SAID THERE WERE SEVEN DIFFERENT LEVELS OF PERMITTED RETURN FOR THE EXISTING SEVEN SCHEMES OF CONTROL.

HE SAID THAT THE GOVERNMENT UNIT RESPONSIBLE FOR THE MONITORING

OF PUBLIC UTILITIES HAD A WORKFORCE OF ONLY FIVE.

+GIVEN THE DIFFERENCES IN THE SCHEMES OF CONTROL AND IN THE MONITORING PROCEDURES, STRICT ENFORCEMENT WOULD NOT BE POSSIBLE EVEN IF THEY WERE SUPERMEN, HE SAID.

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