XN000022-1996-05-29 — Page 18

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Motion debate on fair trade legislation

Following is the speech by the Secretary for Trade and Industry, Miss Denise Yue, in the motion debate on legislation on fair trade in the Legislative Council today (Wednesday):

Mr President,

I welcome this opportunity to outline the Government policy on the promotion of competition in Hong Kong.

The Government is fully committed to the promotion of free trade and competition which is the best guarantee of economic efficiency, low prices and consumer protection. As we all know, Hong Kong is a totally open economy which The exposes its traders and producers to acute international competition. Government's policy of promoting free trade and competition has not only met the needs of traders and producers but also served Hong Kong well. Hong Kong is recognised as one of the most competitive economies in the world. Last year, we came third in the World Competitiveness Report published by the International Institute for Management Development and the World Economic Forum in Switzerland.

The reason I have to particularly cite the result of the Report is because some of the Honourable Members had mentioned about that many other economies, including those in Asia, had already put legislation on fair trading in place. The Government is open-minded as to whether or not legislation on fair trading should be introduced in Hong Kong. But, even without the enactment of such legislation, Hong Kong had already earned the reputation as the third most competitive economy in the world.

Honourable Members are very familiar with our basic economic philosophy of minimum Government intervention in market forces, which we believe is the best formula for enhancing competition and efficiency on the one hand, and keeping costs and prices down on the other. However, where necessary, the Government does take appropriate and pragmatic measures to rectify any unfair business practices, safeguard competition and protect consumer interests. For examples, in order to discourage unfair, deceptive or misleading business practices, the Government has put in place a package of legislation including the Trade Descriptions Ordinance, the Control of Exemption Clauses Ordinance, the Unconscionable Contracts Ordinance, the Supply of Services (Implied Terms) Ordinance and the Sales of Goods (Amendment) Ordinance. A Consumer Legal Action Fund under the Consumer Council has been established since November 1994 to assist consumers individually or collectively to take legal action against unscrupulous traders. A new Trade Practices Division has been set up in the Consumer Council to examine business practices which may prevent, restrict or distort competition, with a view to tendering advice to the Government on measures to promote healthy competition.

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