XN000022-1991-11-13 — Page 3

WEDNESDAY, NOVEMBER 13, 1991

RISK

THAT

INVESTORS ARE SENSITIVE TO ANY INCREASE IN RISK INCLUDING OF PUBLIC CONTROVERSY OR CHANGES IN AGREED TERMS OR TO PUBLIC DISCLOSURE OF COMMERCIAL SECRETS. IT IS VITAL THAT WE DO NOTHING MIGHT

RESULT COST A DETERIORATION IN THE INVESTMENT CLIMATE AND AS A SHIFT THIS MASSIVE REQUIREMENT FOR FUNDS FROM THE PRIVATE SECTOR TO THE TAXPAYER.

WILL

IN

WE

INVESTORS HAVE TO FACE THE HARD COMMERCIAL FACT THAT NOT INVEST IF THE TERMS ARE NOT REASONABLE OR IF THE INVESTMENT CLIMATE IS PERCEIVED TO BE ANTAGONISTIC. DO YOU WANT OUR TELEPHONES,

BE PROVIDED BY A OUR ELECTRICITY, OUR BUS SERVICES TO

GOVERNMENT CLEARLY NOT. THAT IS WHAT WE RISK IF WE GO TOO FAR DEPARTMENT, INJECTING POLITICAL PRESSURES INTO THESE ARRANGEMENTS. IT DID NOT MEAN THAT WE DO NOT HAVE THE INTEREST OF THE CONSUMER AT HEART. WE DO. BUT THE CONSUMER'S LONG-TERM INTERESTS REQUIRE A

BALANCED CAREFUL, ASSESSMENT OF THE LEVEL OF FARES OR CHARGES WHICH IS ADEQUATE TO COVER TO COST PLUS PROFIT AND RE-INVESTMENT. ARTIFICIALLY LOW PRICES EQUAL DETERIORATING SERVICE.

MR DEPUTY PRESIDENT I SUPPORT THE AMENDMENT MOVED BY MR CHEONG.

SPEECH OF SES ON SCHEME OF CONTROL DEBATE

*

MR DEPUTY PRESIDENT,

I HAVE LISTENED VERY CAREFULLY TO THE VIEWS WHICH HAVE BEEN EXPRESSED BY MEMBERS. I SHOULD LIKE TO RESPOND TO SOME OF THESE IN GREATER DETAIL. BUT BEFORE I DO SO, I SHOULD LIKE TO SAY AT THE OUTSET THAT THE ADMINISTRATION FULLY ACCEPTS THE NEED TO TAKE ACCOUNT OF THE VIEWS OF THIS COUNCIL AND OF THE PUBLIC AND INDEED DOES SO.

ALL SCHEMES OF CONTROL AGREEMENTS HAVE BEEN PUBLISHED IN ENGLISH AND CHINESE SINCE 1982. THE PUBLIC AND MEMBERS OF THIS COUNCIL ARE FREE TO COMMENT ON THEM AT ANY TIME. DURING THE LIFETIME OF AN AGREEMENT THERE ARE MANY OPPORTUNITIES TO OBTAIN AND CONSIDER PUBLIC FEEDBACK THROUGH OMELCO MEMBERS, DISTRICT BOARDS, THE CONSUMER COUNCIL, THE MEDIA AND OTHER REPRESENTATIVE BODIES. MY COLLEAGUE THE SECRETARY FOR TRANSPORT WILL ELABORATE MORE FULLY ON THE WAYS IN WHICH THE VIEWS OF THE PUBLIC HELP TO GUIDE THE PLANNING AND PROVISION OF TRANSPORT SERVICES.

IS

IT

IN SEEKING TO MONITOR THE OPERATIONS OF UTILITY COMPANIES, IMPORTANT THAT THE COMPANIES REMAIN DIRECTLY ACCOUNTABLE TO THEIR OWN CONSUMERS, FOR WE BELIEVE THAT THIS IS THE BEST WAY OF ENSURING THAT THEY KEEP UP TO SCRATCH. MOST UTILITY COMPANIES ALREADY HAVE WELL-ESTABLISHED AND EFFICIENT PROCEDURES FOR HANDLING COMPLAINTS. AT THE REQUEST OF THE GOVERNMENT THE TWO POWER COMPANIES, THE HONG KONG TELEPHONE COMPANY AND THE PUBLIC TRANSPORT OPERATORS HAVE AGREED то STRENGTHEN THEIR CHANNELS OF COMMUNICATION WITH CONSUMERS BY ESTABLISHING CONSUMER LIAISON COMMITTEES. THE FEEDBACK FROM THESE COMMITTEES WILL UNDOUBTEDLY PROVIDE A FURTHER VALUABLE INSIGHT INTO PUBLIC PERCEPTIONS OF THE SERVICES IN QUESTION.

/A NUMBER