XN000022-1993-01-12 — Page 17

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TUESDAY, JANUARY 12, 1993

EXCO DISCUSSES CONSTITUTIONAL DEVELOPMENT

A

GOVERNMENT SPOKESMAN SAID TODAY (TUESDAY) THAT AT ITS MEETING THIS MORNING, THE EXECUTIVE COUNCIL BEGAN ITS DETAILED CONSIDERATION OF THE PROPOSALS TO BE PUT TO THE LEGISLATIVE COUNCIL ON THE ARRANGEMENTS FOR THE 1994/5 ELECTIONS.

IT WILL TAKE SEVERAL MEETINGS ΤΟ COMPLETE THIS WORK, ALTHOUGH THE COUNCIL HAS APPROVED A DRAFT BILL то ESTABLISH A BOUNDARY AND ELECTION COMMISSION AND AGREED ON THE PUBLICATION OF A COMPENDIUM OF ALTERNATIVE PROPOSALS.

PROPOSAL ON BANK DEPOSIT PROTECTION

* * * *

PROPOSAL AFFORDED

THE GOVERNOR IN COUNCIL HAS AGREED IN PRINCIPLE TO A TO INTRODUCE LEGISLATION WHEREBY SMALL DEPOSITORS WILL BE PRIORITY CLAIMS IN THE EVENT OF THE LIQUIDATION OF A BANK, A GOVERNMENT SPOKESMAN SAID TODAY (TUESDAY).

THE SPOKESMAN SAID FOLLOWING CAREFUL ANALYSIS OF THE PROS AND CONS FOR A DEPOSIT PROTECTION SCHEME (DPS) AND TAKING INTO ACCOUNT THE VIEWS COLLECTED DURING THE CONSULTATION EXERCISE ON THE MATTER, A DECISION HAD BEEN TAKEN NOT TO INTRODUCE A DPS.

SAID

EXPLAINING THE BACKGROUND TO THE DECISION, THE SPOKESMAN THE CONSULTATION PAPER ON A DEPOSIT PROTECTION SCHEME HAD BEEN PUBLISHED IN FEBRUARY 1992 TO GAUGE THE STRENGTH OF SUPPORT INTRODUCTION OF SUCH A SCHEME.

FOR THE

DURING THE CONSULTATION PERIOD, PUBLIC VIEWS WERE COLLECTED FROM VARIOUS SOURCES, INCLUDING DIRECT SUBMISSIONS, A DEBATE IN THE LEGISLATIVE COUNCIL AND DISCUSSIONS IN DISTRICT BOARDS. COMMENTS IN THE MASS MEDIA WERE ALSO MONITORED.

"IN ALL, A TOTAL OF 53 DIRECT SUBMISSIONS WERE RECEIVED FROM THE GENERAL PUBLIC, LEGCO MEMBERS, ACADEMICS, AND COMMERCIAL AND PROFESSIONAL BODIES,' HE SAID.

ון

"WHILE THE CONSULTATION EXERCISE GENERATED CONSIDERABLE DEBATE IN THE MEDIA, THERE WAS ONLY A MODEST RESPONSE FROM THE GENERAL PUBLIC AS EVIDENCED BY THE SMALL NUMBER OF SUBMISSIONS RECEIVED.

HE NOTED THAT CONTRARY TO A WIDESPREAD ASSUMPTION THAT SMALL DEPOSITORS WOULD BE IN FAVOUR OF A DPS, A MAJORITY OF THE SUBMISSIONS RECEIVED FROM INDIVIDUALS OR GROUPS OF INDIVIDUALS WERE IN FACT AGAINST SUCH SCHEMES.

"THIS IS

PERHAPS BECAUSE DEPOSITORS OF THE LARGEST BANKING GROUPS SAW LITTLE ADVANTAGE IN A PROPOSAL WHICH, AS THE CONSULTATION PAPER MADE CLEAR, WOULD BE OF LITTLE DIRECT BENEFIT ΤΟ THEM, THE SPOKESMAN SAID.

/"WE BELIEVE