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Contracts rule over people's pockets

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'Chief Executive Donald Tsang Yam-kuen, saying rising inflation had made these 'difficult times', told lawmakers the financial needs of people would outweigh the interests of shareholders when government considered a rise in fees for public services.'

SCMP, May 16

He didn't actually phrase it quite that way in his question and answer session with legislators on Thursday, and he hedged it by emphasising that the government must respect the free market, but, nonetheless, it is effectively what he said.

I have no objection if he was referring to such things as water usage charges. The government is the sole shareholder of the water business in Hong Kong and if it wishes to lose money on selling people water (which it does) and make up the loss through other revenues taken from these people, that's government's business.

It's a wasteful way of doing things, of course.

By undercharging for public services we invariably encourage waste in them or prop up industries that have no place here any longer.

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