XN000022-1997-01-07 — Page 9

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8

Half of the members of the Costs Committee are solicitors. They could, therefore, block any proposal that they did notapprove.

There are no economists or accountants on the committee, or consumer representatives.

Scale fees allow those buying or selling lower-priced properties to be subsidised by buyers and sellers of higher-priced properties. The abolition of scale fees would mean an increase in fees for the former.

The fact that the scale fees for lower-priced properties are less than those for higher-priced properties does not necessarily mean that fees for the former would increase if scale fees were abolished. After abolition, there will be price competition and fees will be determined by market forces.

Only under a system of scale fees can consumers know in advance how much they will be charged.

A consumer can always ask in advance for an indication of the fee for any legal service, regardless of whether scale fees are charged. Lawyers should provide more information about their services, in order to help consumers make an informed choice.

Consumers need special protection in respect of conveyancing since a home purchase is likely to be the most expensive transaction in their lives; any mistake in the transaction may have disastrous consequences; and such a mistake may not be discovered until many years later.

Consumers do indeed need to obtain a proper legal service when buying property, but scale fees are irrelevant to that need. A consumer who obtains the services of a qualified solicitor is entitled to a quality service, regardless of whether scale fees are charged.

The proposed abolition of scale fees is a ploy to destabilise Hong Kong's legal system close to the transfer of sovereignty.