THE consultation paper on legal services, issued by the Attorney-General omitted to address the problem as to how the Government could avoid a monopoly situation when due to reduction of fees, the smaller law firms would have to close down, resulting in only a few big law firms being left in Hong Kong.
For example, the Japanese style of doing business is to reduce prices until all the competitors are wiped out. Then you would be in a monopoly situation, and would be able to set your prices freely.
It is well understood that when you have situations where only a limited number of persons are qualified to undertake a job, such persons would be able to set their fees without much opposition. Recent events have shown that there have been such situations.
The danger of having a limited choice of law firms would not assist Hong Kong to become a major financial centre of the region.
ARTHUR LIEU Stanley