XN000022-1993-02-17 — Page 30

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WEDNESDAY, FEBRUARY 17, 1993

FAIR

I WOULD LIKE то MAKE IT CLEAR ON THIS OCCASION THAT THE GOVERNMENT SUBSCRIBES FULLY ΤΟ THE PHILOSOPHY OF FREE AND MARKETS, WHICH IS THE BEST FORMULA FOR ENHANCING COMPETITION EFFICIENCY ON THE ONE HAND AND KEEPING COSTS AND PRICES DOWN ON OTHER.

AND THE

I AM GRATEFUL TO MEMBERS FOR THEIR SUGGESTIONS ON WAYS TO ENHANCE COMPETITION IN OUR ECONOMY AND FOR THEIR OBSERVATIONS ON THE POSSIBLE OR PERCEIVED RESTRICTIVE TRADE PRACTICES IN CERTAIN SPECIFIC SECTORS. I WOULD LIKE TO ASSURE MEMBERS THAT, IN OUR FURTHER DELIBERATIONS ON THIS ISSUE, WE WILL GIVE THE MOST CAREFUL CONSIDERATION TO THE VIEWS EXPRESSED IN THIS COUNCIL THIS AFTERNOON. I WOULD ALSO LIKE TO UNDERLINE THE GOVERNMENT'S COMMITMENT TO THE USE OF APPROPRIATE AND PRAGMATIC MEASURES TO RECTIFY ANY UNFAIR TRADE PRACTICES, SAFEGUARD FAIR COMPETITION AND PROTECT THE INTEREST OF CONSUMERS.

I DO NOT THINK IT IS NECESSARY TODAY FOR ME TO RESPOND INDIVIDUALLY TO OBSERVATIONS MADE BY MEMBERS ON ALLEGED MONOPOLISTIC OR OLIGOPOLISTIC TENDENCIES OR INADEQUATE COMPETITION IN A NUMBER OF BUSINESS SECTORS. MOST OF THESE SECTORS HAVE BEEN THE SUBJECTS OF COMMENTS BY MY COLLEAGUES ON PREVIOUS OCCASIONS. AND, SOME ARE THE SUBJECTS OF STUDIES CURRENTLY BEING UNDERTAKEN BY THE CONSUMER COUNCIL. ONE OF THEM, THE MONITORING OF OUR TWO RAILWAYS, WELL INDEED BE THE SUBJECT OF A DEBATE FOLLOWING THIS ONE. BUT I MUST STRESS THAT MY NOT RESPONDING TO POINTS MADE BY MEMBERS ON THESE SECTORS DOES NOT NECESSARILY MEAN THAT THE GOVERNMENT AGREES WITH ANY OF THOSE POINTS. AS A GENERAL POINT, WHAT I WOULD LIKE TO SAY IS THAT IT IS THE GOVERNMENT'S BELIEF THAT, WHENEVER POSSIBLE, COMPETITION SHOULD BE ENCOURAGED AND THAT IT IS THROUGH COMPETITION THAT FAIR PRICES AND SERVICES CAN BE OBTAINED. THERE ARE HOWEVER CIRCUMSTANCES WHERE THE LEVEL OF INVESTMENT REQUIRED, OR THE NEED FOR PRUDENTIAL SUPERVISION, OR THE LONG-TERM INTEREST OF CONSUMERS, OR OTHER FACTORS, INDICATE THAT FREE COMPETITION MAY NOT BE OBTAINABLE, OR MAY NOT BE THE BEST SOLUTION. IN SUCH CASES, THROUGH VARIOUS ARRANGEMENTS, WE HAVE ACHIEVED A REASONABLE BALANCE BETWEEN A JUSTIFIED MONOPOLISTIC OR OLIGOPOLISTIC SITUATION ON THE ONE HAND AND THE BENEFITS OF QUALITY SERVICES AND FAIR PRICES ON THE OTHER.

IN RESPECT OF THOSE SECTORS IN THE ECONOMY WHICH ARE SUBJECT TO GOVERNMENT CONTROLS, A KEY IMPERATIVE IN THE FORMULATION OF SUCH CONTROLS IS THE PROMOTION OF COMPETITION AND PROTECTION OF CONSUMERS. THESE CONTROLS ARE REVIEWED AND REVISED FROM TIME TO TIME TO IDENTIFY AREAS FOR POSSIBLE IMPROVEMENT AND TO MEET THE NEEDS OF CHANGING CIRCUMSTANCES. THE EFFORTS WE HAVE MADE IN THE LAST YEAR, FOR

INCLUDE THE INJECTION OF MORE COMPETITION INTO THE AREAS

OF TELECOMMUNICATIONS, PUBLIC TRANSPORT AND TELEVISION. WE ARE BY MEANS COMPLACENT ABOUT THESE EFFORTS. THERE MUST ALWAYS BE ROOM FURTHER IMPROVEMENT.

EXAMPLE,

NO

FOR

/AS I

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