XN000022-1995-07-26 — Page 45

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Gas company not subject to profit control

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

According to the findings in a recent report of the Consumer Council, the Hong Kong and China Gas Company is the only public utility company in the territory which is not subject to any profit control. It is also pointed out in the report that the company monopolises the market and faces no competition, resulting in the interests of the consumers being ignored. In view of this, will the Government inform this Council:

(a)

(b)

of its response to the above-mentioned findings; and

whether a regulatory mechanism will be set up to safeguard the interests of the consumers; if so, what the details are; if not, why not?

Reply:

The Consumer Council has published its report "Assessing Competition on the Domestic Water Heating and Cooking Fuel Market" on 6 July 1995. The objective of the study is to examine the market competitiveness and trade practices in the domestic water heating and cooking fuel supply industry. The Government will examine very carefully the recommendations in the report and a full response will be finalised by the end of this year. In the meantime, we welcome comments from the public and interested parties.

End/Wednesday, July 26, 1995