ENG-1994 — Page 153

TRADE AND INDUSTRY

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effect when banks report their 1994 accounts. Preparatory work is also underway for further improvements to be introduced in respect of the 1995 accounts of banks.

Following a study on the driving instruction industry, the council called upon the government to devise a long-term policy for the development of the industry in a manner that would be consistent with the government's White Paper on transport policy, Moving Into the 21st Century. The council recommended specific measures to improve competition. After carefully studying the recommendations, the government concluded that the present arrangements for the provision of driving instruction were fair and already provided ample scope for competition. This view was fully endorsed by the Transport Advisory Committee. The report on the supermarket industry was released in November. The objectives of the study were to examine the current competitive environment of the supermarket industry and to evaluate the impact of the market structure of the industry on suppliers and consumers. A number of recommendations to promote competition and enhance consumer interests were put forth by the council. The government will publish a detailed response within six months of the release of the report. It has invited the public to give views and is consulting relevant parties on the recommendations.

The study on gas supply aims to review the competition between towngas and liquified petroleum gas (LPG) with regard to consumer interests, and to examine whether LPG can be considered an ideal substitute for towngas.

During the

year, the council examined 10 045 complaints and received 181 180 enquiries through its 16 consumer advice centres. These centres played an important role in mediating in disputes between consumers and traders. The settlement rate stood at an average of 85

per cent of justifiable cases. In certain cases, unscrupulous traders were publicly censured by the council for engaging in dubious business practices.

In cases where traders refused to resolve disputes through mediation, the council advised the aggrieved complainants to seek legal redress in the Small Claims Tribunal or other courts, where appropriate. In September, the Governor in Council approved the appoint- ment of the Consumer Council as the trustee of a charitable trust named the Consumer Legal Action Fund. The fund seeks to provide assistance to groups of consumers as well as to individual consumers in taking legal action against unscrupulous traders. The provision of assistance to groups of consumers to take legal action on a collective basis will avoid litigation involving multiple actions, and promote more efficient and cost-effective legal proceedings. It will improve consumers' access to justice and help protect their rights. In November, the Finance Committee of the Legislative Council approved an allocation of $10 million as seed money to establish the fund. The fund expects to receive its first application in 1995.

The council believes that self-regulation of any trade or industry should be backed up effectively by an appropriate legislative framework. It welcomed the amendment to the Insurance Companies Ordinance, in July, to provide statutory support for the self-regulation of insurance intermediaries. On the same basis, the council also supported and worked closely with the parties concerned to implement the proposal of introducing a mandatory licensing system and performance standards to regulate estate agents.

The council welcomed the enactment of four pieces of consumer protection legislation in October the Consumer Goods Safety Ordinance, the Sale of Goods (Amendment) Ordinance 1994, the Supply of Services (Implied Terms) Ordinance and the Unconscion-