XN000022-1993-03-22 — Page 12

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MONDAY, MARCH 22, 1993

TARIFF LEVELS, WHICH COMPARE FAVOURABLY WITH THOSE CHARGED IN BOTH EUROPE AND OTHER PARTS OF THE REGION, HAVE ONLY INCREASED BY

22% ON AVERAGE OVER THE PAST 10 YEARS COMPARED TO A 110% RISE IN THE CONSUMER PRICE INDEX.

IN REAL TERMS, THE COST OF ELECTRICITY HAD FALLEN OVER 42% IN 10 YEARS, MEMBERS WERE TOLD.

MEMBERS WERE ALSO INFORMED THAT THE GOVERNMENT HAD CONCLUDED THAT NO CHANGE SHOULD BE MADE ΤΟ THE CURRENT RATES OF PERMITTED RETURN (THE MAXIMUM PROFIT ALLOWED TO SHAREHOLDERS) PROVIDED FOR UNDER THE SCHEME OF CONTROL AGREEMENT.

THESE RANGE FROM 13.5% TO 15% RETURN ON AVERAGE NET FIXED ASSETS, LESS THE DEDUCTIONS OF INTEREST REQUIRED UNDER THE TERMS OF THE SCHEME OF CONTROL AGREEMENT.

IN AGREEING WITH THE COMPANY THAT THERE SHOULD BE NO CHANGE то THE RATES OF PERMITTED RETURN THE GOVERNMENT TOOK ACCOUNT OF THE VITAL IMPORTANCE OF ENCOURAGING CONTINUING INVESTMENT TO MEET GROWING DEMAND.

WHILE IT IS INTENDED THAT THERE BE NO CHANGR IN THE BASIC TERMS OF THE NEW SCA, MEMBERS WERE BRIEFED ON THE CHANGES THAT WOULD BE MADE UNDER THE NEW AGREEMENT TO ENHANCE GOVERNMENT'S ABILITY ΤΟ MONITOR THE COMPANY'S OPERATION.

THESE INCLUDE REQUIREMENTS TO DEVELOPMENT PROGRAMMES AIMED AT ENERGY CONSERVATION AND MEASURES TO STRENGTHEN TECHNICAL AND FINANCIAL MONITORING.

ENTRIES TO GOVERNOR'S INDUSTRY AWARD SCHEME INVITED

THE ACTING DIRECTOR-GENERAL OF INDUSTRY, MR RICKY FUNG, TODAY (MONDAY), URGED MANUFACTURERS ΤΟ ENTER COMPETITIONS FOR THE 1993 GOVERNOR'S AWARD FOR INDUSTRY, A MAJOR AWARD SCHEME TO RECOGNISE AND ENCOURAGE EXCELLENCE IN DIFFERENT ASPECTS OF INDUSTRIAL PERFORMANCE.

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MR FUNG SAID THE SCHEME INTRODUCED IN 1989, WAS AIMED AT RECOGNISING AND ENCOURAGING OUTSTANDING CONTRIBUTIONS TOWARDS DEVELOPING THE EFFICIENCY AND COMPETITIVENESS OF MANUFACTURING INDUSTRY.

HONG

KONG'S

"IT IS THE HIGHEST RECOGNITION AVAILABLE то INDUSTRY AND WINNING IT THROUGH TOUGH COMPETITION IS A PRESTIGIOUS HONOUR OF LASTING VALUE," HE SAID.

THE AWARD SCHEME CONSISTS OF SIX CATEGORIES: CONSUMER PRODUCT DESIGN, MACHINERY AND EQUIPMENT DESIGN, PRODUCTIVITY, QUALITY, ENVIRONMENTAL PERFORMANCE AND EXPORT MARKETING,

/THE CONSUMER