XN000022-1988-10-20 — Page 44

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THURSDAY, OCTOBER 20, 1988°

F

"THE SUBJECT HAS A LONG AND TANGLED HISTORY, HE SAID.

"IN 1977 THE CONSUMER COUNCIL SUBMITTED TO THE

A 'REPORT ON HIRE-PURCHASE IN HONG KONG'.

ADMINISTRATION

THE

"A WORKING GROUP WAS ESTABLISHED, AND IT WAS DECIDED THAT REPORT SHOULD BE ACCEPTED IN GENERAL TERMS AND THAT LEGISLATION SHOULD, INDEED, BE INTRODUCED INTO THE LEGISLATIVE COUNCIL.

"UNFORTUNATELY, AS DRAFTING PROGRESSED,. IT BECAME APPARENT THAT THERE WERE A NUMBER OF DIFFICULT ISSUES UPON WHICH THERE WAS LITTLE CONSENSUS AND IT WAS NOT UNTIL 1985 THAT THE SECRETARY FOR ECONOMIC SERVICES WAS ABLE TO CIRCULATE A REVISED DRAFT TO INTERESTED PARTIES.

"REGRETTABLY, THE DRAFT BILL FOUND LITTLE SUPPORT AND IT WAS SUBJECTED TO MANY CRITICAL BUT OFTEN CONTRADICTORY ADVERSE COMMENTS. THERE SEEMED NO CLEAR WAY FORWARD.'

THE

MR JACOBS SAID THAT DURING THE PROGRESS OF THE DRAFT BILL, NECESSITY FOR HIRE-PURCHASE LEGISLATION IN HONG KONG WAS RE-EXAMINED, AND IT WAS NOTED THAT THE NUMBER OF COMPLAINTS TO THE CONSUMER COUNCIL IN RELATION TO HIRE-PURCHASE TRANSACTIONS WAS COMPARATIVELY SMALL.

"SO IT COULD BE ARGUED THAT THE DEMAND FOR HIRE-PURCHASE LEGISLATION APPEARS TO HAVE DECREASED, HE SAID.

"

"POSSIBLY THIS IS DUE LARGELY TO INCREASING COMMUNITY AND THE WIDER AVAILABILITY OF OTHER CREDIT, SUCH AS CREDIT CARDS AND BANK LOANS.

THE

AFFLUENCE IN FORMS OF CONSUMER

**THE NUMBER OF COMPLAINTS RECEIVED BY THE CONSUMER COUNCIL FELL FROM ONE HUNDRED AND FIVE IN 1980-81 то A MERE SIXTEEN IN 1987-88.

"WHILST I DO NOT BELIEVE THAT THIS SHOULD BE THE SOLE DETERMINANT AS TO WHETHER OR NOT HIRE-PURCHASE LEGISLATION SHOULD BE INTRODUCED IN HONG KONG, IT IS OBVIOUSLY A FACTOR.'

I

LAW

EXEMPTION

TURNING TO ANOTHER ASPECT TO THE DELAY, MR JACOBS SAID THE REFORM COMMISSION REPORTED ON THE SUBJECT OF THE CONTROL OF CLAUSES IN DECEMBER 1986.

OF THE POSSIBLE

"THE REPORT OF THE COMMISSION, WHICH PICKS UP A NUMBER IMPORTANT PROVISIONS UNDER CONSIDERATION IN THE CONTEXT OF HIRE-PURCHASE LEGISLATION, HAS BEEN ACCEPTED IN PRINCIPLE, AND IT 15 THE INTENTION THAT A BILL DEALING WITH THE CONTROL OF EXEMPTION CLAUSES SHOULD BE INTRODUCED INTO THIS COUNCIL LATER THIS SESSION, HE SAID.

LEGISLATION

OF

"WE PROPOSE TO STUDY THE POSSIBLE NEED FOR FURTHER IN THE LIGHT OF EXPERIENCE WITH THE IMPLEMENTATION OF THE CONTROL EXEMPTION CLAUSES BILL.

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