Study urges competition in all sectors
A study says the government should not help industries by providing land subsidies but make Hong Kong more competitive across all sectors.
The study by the Bauhinia Foundation Research Centre, headed by EAS strategy consultant director Michael Enright, said the right approach was to review the land policy and put all industries in a more sustainable position rather than subsidise favoured sectors.
The government announced in the budget a HK$300 million fund to help the film industry, which Dr Enright criticised, saying: 'A fund for the film industry today, another industry tomorrow and another on the day after tomorrow ...'
The study found competitiveness was inhibited by a lack of competition policies and oligopolies being allowed to act as toll collectors on the economy.
'Just setting up two or three 'competitors' in an industry is not enough to ensure that competition will take place without a competition policy,' the study says.
The right approach was to have an independent agency with the power to investigate non-competitive behaviour, it said.