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utilities during the Legislative Council meeting on 24 November 1982 was largely the result of public concern on the matter. The "Ah So Motion", though far less striking and far-reaching than the "Lobo Motion", had been then the talk of the Town. The report prepared by the Consultancy to review the Government's Monitor Arrangements of the Power Companies, put forward by the Secretary for Economic Services on 13 March 1985, is a product of that debate.

The Government has always insisted that public utilities and services, except water supplies and postal

services, should be provided by the private sector as far as practicable. This basic principle, which allows users and consumers to enjoy reliable services and the utilities companies to obtain "reasonable returns", is sound. The fact that the Post Office, though being a government department, has a surplus of $36.9 million this financial year will certainly make many neighbouring countries feel envious. If a public utility is run by the Government, the department concerned must be accountable to the Legislative Council. Statutory corporations such as the Mass Transit Railway Corporation and the Kowloon-Canton Railway Corporation, which are wholly owned by the Government, are monitored by their Boards of Directors which are appointed by the Government. As for other non-government statutory corporations, their operations have to comply with the provisions of specific ordinances. Government refrains as far as possible from interfering with the internal administration of privately owned utility companies which have been given a franchise or semi-franchise. It only protects the interests of consumers by means of the so-called schemes of control. At present, there are all together seven companies which have entered into scheme of control agreements with the

Government. They are the China Light and Power Company Limited, the China Motor Bus Company Limited, the Hong Kong Air Cargo Terminals Limited, the Hong Kong Air Terminal Services Limited, the Hong Kong Telephone Company Limited. Utility companies which are not bound by any scheme of control