Building a Better Business Environment

Updated: 2010-02-12 07:43

By Joseph Li(HK Edition)

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 Building a Better Business Environment

Gregory So is settling quite well with his job and warming his seat in his 20 months with the government in spite of some early setbacks.

Under Secretary for Commerce and Economic Development Gregory So tells Joseph Li about his present job, as well as his sentimental journey as to why and how he joined the government 20 months ago.

Gregory So joined the government as Under Secretary for Commerce and Economic Development in May 2008, being the first batch of under secretaries and political assistants under the expanded second-tier of the political accountability system.

Given his legal background as a lawyer, he is assigned the commerce and economic development portfolios, with special focus on several pieces of important legislative proposals related to the business environment in Hong Kong.

In an exclusive interview with China Daily, So introduced his ongoing work and described the progress made at length. He also looked back at some of the negative incidents surrounding himself and his politically-appointed colleagues over the past year or two.

At present, So is handling the consultation and legislative work of three very important topics. They include the amendments to the Control of Obscene and Indecent Articles Ordinance and the Trade Descriptions Ordinance, as well as the legislative steps for a competition law in Hong Kong.

Protection of consumer rights is an important issue that concerns the daily living of the citizens and also tourists, he said. In 2008, the Trade Description Ordinance was amended to require retailers to clearly display the unit prices of goods to let customers know whether the price of the goods, say jewelry and dried seafood, is per catty, tael, pound or ounce.

As the existing ordinance targets only goods, the government intends to provide greater protection to the consumers and combat irregular trade practices by incorporating services into the law.

In particular, he said the law will target several types of irregular trade practices often reported to the Consumer Council.

These include undue pressure or influence that prevents the customers from making wise and correct decisions, he cited as examples. Very often some shops "offer" very low prices for certain goods in the ad, but when the customers come in, the shops would claim that such goods are sold out and lure the customers to buy more expensive models.

Another type of irregular trade practice involves pre-payments for services. When the customers who have paid in advance want to make appointment for the services, they are always told that the services are full, but in fact the establishments are only cheating them, as they have neither the capability nor the intention to provide the services after receiving advance payments.

"We need to strike a very careful balance between consumer protection and doing business in Hong Kong, as some legislators have proposed a 'cooling period' for all types of goods and services.

"In due course, we will publish a consultation paper to solicit views of the public. In the consultation paper, we will clearly define key terms such as 'undue pressure' or 'undue influence'. It is necessary to consult the public, because we do not want to affect the business environment and the economic freedom of Hong Kong, knowing that only a minority of shops are dishonest, while across-the-board legislation will affect the honest traders," he explained.

Last year, the Consumer Council received a total of 34,114 complaints, reflecting an increase of 19 percent over 2008. Excluding complaints related to Lehman Brothers structured financial products, the number of sale practice complaints rose by 33 percent to 4,195 cases. In terms of sale practice complaints, 22,537 complaints were recorded, accounting for the biggest share or 66 percent of the total number of complaints, with the most frequently reported sectors being telecommunication, financial services, electrical appliances and beauty care.

In the light of the amended Trade Descriptions Ordinance, the Customs and Excise Department has enhanced law enforcement against dishonest shops that have cheated the customers.

"It is a win-win situation as the business sector and citizens both welcome our action," So said enthusiastically, adding: "The Customs raids have not affected their business. Instead, the business community is very pleased that the raids have dealt with the 'black sheep' and helped the retail sector, thus enhancing the confidence of local consumers and tourists."

Building a Better Business Environment

Building a Better Business Environment

(HK Edition 02/12/2010 page2)