XN000022-1986-03-19 — Page 55

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WEDNESDAY, MARCH 19, 1986

HE SAID THE FINANCIAL MONITORING UNIT (FMU) OF THE ECONOMIC SERVICES BRANCH, STAFFED BY A NUMBER OF PROFESSIONAL ACCOUNTANTS AND SUPPORTING STAFF, HAD THE RESPONSIBILITY OF MONITORING THE -'FINANCIAL AFFAIRS OF PUBLIC UTILITY COMPANIES.

TOTAL STAFF COSTS DURING THE FIVE-YEAR PERIOD 1981-82 TO 1985-86 AMOUNTED TO $8.32 MILLION.

IN ADDITION TO THE FMU, HE SAID, STAFF OF THE ECONOMIC SERVICES BRANCH, THE TRANSPORT BRANCH, THE POST OFFICE (FOR THE TELEPHONE COMPANY) ELECTRICAL AND MECHANICAL SERVICES DEPARTMENT (FOR THE ELECTRICITY COMPANIES) AND TRANSPORT DEPARTMENT (FOR THE TRANSPORT COMPANIES) WERE ALSO RESPONSIBLE FOR MONITORING THE OPERATIONS OF UTILITY COMPANIES.

+HOWEVER, IT IS NOT POSSIBLE TO IDENTIFY THE MONITORING COSTS ALONE AS THESE STAFF ARE ALSO ENGAGED IN OTHER ACTIVITIES,+ KE SAID.

SIR JOHN SAID NOT ALL PUBLIC UTILITY COMPANIES WERE SUBJECT TO FORMAL SCHEMES OF CONTROL BUT THE DEGREE OF EXAMINATION OR ANALYSIS NECESSARY, FOR EXAMPLE TO ASSESS AN APPLICATION FOR A REVIEW OF CHARGES, WAS VERY MUCH THE SAME.

MINIMUM GOVT ROLE IN UTILITY FIRM MANAGEMENT

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THE GOVERNMENT BELIEVES THAT ITS INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS AND MANAGEMENT OF PUBLIC UTILITY COMPANIES SHOULD DE KEPT TO A MINIMUM, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.

REPLYING TO A QUESTION BY THE HON TAM YIU-CHUNG, SIR JOHN SAID IT WAS THE JOB OF THE COMPANIES' MANAGEMENT TO MANAGÉ.

HOWEVER, HE POINTED OUT THAT STEPS WERE CONTINUALLY TAKEN TO ENHANCE AND STRENGTHEN THE MONITORING ROLE OF THE GOVERNMENT WHEN NECESSARY.

+FOR EXAMPLE, IN ACCORDANCE WITH THE RECOMMENDATIONS MADE BY THE CONSULTANTS ERNST AND WHINNEY WE ARE REVIEWING THE MONITOR IN- ARRANGEMENTS IN RESPECT OF THE ELECTRICITY COMPANIES, HE SAID.

SIR JOHN ALSO POINTED OUT THE ACTIVE INVOLVEMENT OF THE TRANSPORT DEPARTMENT IN THE ACTIVITIES OF THE TRANSPORT COMPANIES.

/IN RESPECT