XN000022-1997-01-15 — Page 20

7 -

Motion debate on competition policy

Following is a speech by the Secretary for Trade and Industry, Miss Denise Yue, in response to the Hon Fred Li's motion and the Hon James Tien's amendment motion on competition policy in the Legislative Council today (Wednesday):

Mr President,

I have listened very carefully to the views expressed by Honourable Members on both the motion and the amendment motion moved by Hon Fred Li and Hon James Tien respectively. I would like to thank Honourable Members for all the valuable comments made on this important subject, which I am sure will be most helpful to the Government in preparing the Government Response to the Consumer Council's study report on competition policy. I would also like to congratulate again the Consumer Council on its completion of this important study.

Since 1993, the Government has provided funds for the Consumer Council to conduct a series of studies on competition. Six sector-specific studies on banking, supermarkets, domestic water heating and cooking fuel market, telecommunications, television broadcasting and private residential property market have been published. The Government has responded, positively and constructively, to five reports and the Government Response to the one on private residential property market is intended to be published later this month.

The last in the series is a study on the overall assessment of the competition environment in Hong Kong. The study report was published by the Consumer Council on 25 November 1996. The Chairman of the Consumer Council briefed Honourable Members of the Panel on Trade and Industry on the findings and recommendations of the study report at its meeting held yesterday [14 January 1997].

In brief, the Council's Report puts forward four main recommendations

(8)

the adoption of a comprehensive competition policy for Hong Kong;

(b) the enactment of a competition law to cover horizontal and vertical

collusive agreements and abuse of dominant position;

6

(c)

(d)

the establishment of an independent Competition Authority outside the Government to investigate and decide on possible breaches of the competition law and advise the Government on competition policy; and

the setting up of an Appeal Body to hear appeals against decisions by the Competition Authority.

Page 20Page 21