HONG KONG LEGISLATIVE COUNCIL -28 February 1990
香港立法局 一九九0年二月二十八日
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SECRETARY FOR ECONOMIC SERVICES: Sir, as I have stated in my main reply, the Government already has existing means of control where there is evidence that a particular company has a monopoly or quasi-monopoly and that it is operating against public interest.
MR. MARTIN LEE: Sir, does the Administration not appreciate that the Hong Kong and China Gas Company Limited enjoys a number of privileges-firstly, the company has been given the first option to participate in all new development projects of the Housing Authority with the result that about 76% of all public housing use towngas; secondly, the company is allowed to enter into the market where it chooses, unlike the bus companies which are required to operate unprofitable routes; and thirdly, the company is not under any scheme of control, or indeed any control at all, by Government?
SECRETARY FOR ECONOMIC SERVICES: Sir, I am indeed aware of the towngas company's privileged position, as Mr. Martin LEE put it, in so far as new public housing estates are concerned. I should point out, however, that the Housing Authority is an autonomous body with full discretionary power to make its own policy on fuel supply for public housing estates. As I understand that policy, the Housing Authority feels that, in so far as gas provision is concerned, where towngas is available then it should be used. Where towngas is not available at present but the Hong Kong and China Gas Company gives assurance to provide it by the completion date of the development, it should also be used. Bulk LPG piped supply will only be considered by the Housing Authority where towngas is not at present available and will not become available by the date of completion of the estate, for example, estates on the outlying islands.
That policy, I understand, was laid down on the grounds of higher safety standards of towngas, continuity of supply during peak demand, and the need to use scarce land for storage tanks if LPG piped systems were installed.
As regards the second part of Mr. Martin LEE's question, I am of course aware and have acknowledged that the Hong Kong and China Gas Company is not currently controlled. In view of the fact that there is competition in the entire field of supply of gas, we do not consider at present that such regulation is necessary. I have, however, pointed out that if the company assumes a predominant position in the market and where it is found to be operating against the public interest, then Government would consider the need for such regulation.
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