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Honourable Members may recall that at the last motion debate on the same subject held in this Council on 29 May 1996, I outlined the Government existing 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. The Government subscribes to the 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.

Mr President, although we do not have a comprehensive competition law, we do have a competition policy. The Government, in the pursuit of its competition policy, is adopting a step-by-step, pragmatic approach in the formulation of instruments and framework that are most suitable for promoting competition in the different sectors of Hong Kong's economy. The Government is taking a sector- specific approach to promote greater competition in the relevant business sectors.

I believe Honourable Members will agree that the recommendations in the Council's Report will have far-reaching implications for the future development of Hong Kong's economy. I believe that there is no disagreement within the community on the fundamental principles of promoting competition and giving consumers adequate protection. However, as evidenced from this afternoon's debate and the previous debates held in this Council, there are divergent and even conflicting views as to what regulatory framework, or what means, Hong Kong should adopt in order to enhance competition. The different approaches advocated by Honourable Members reflect the diverging views of the community towards any reform of the existing competition policy framework in Hong Kong.

Mr President, the Government is open-minded as to whether or not a comprehensive competition law should be introduced and whether a Competition Authority should be established in Hong Kong. The Trade and Industry Branch is examining the recommendations of the Consumer Council's report together with other relevant Government branches and departments. We have also invited the public and more than 110 interested organisations to comment on the recommendations of the report by 6 January 1997. So far, about 40 responses have been received, half of which requested us to extend the deadline by one to three months. Acceding to this request would certainly cause a delay to the formulation of a Government Response which we feel should reflect as much of the community's view as possible. However, in view of the importance and complex nature of the subject matter, the Government is giving serious consideration to the request. I would like to take this opportunity to appeal to all interested parties to let the Government have their views and comments as speedily as possible.