Too many unresolved issues and flaws will undermine the effectiveness of a competition law if the government proceeds with its plans to rush ahead, introducing a bill in the current legislative session. More thorough consideration is needed before proceeding further. This should not be a race.
More is at stake than ever before. Chief Executive Donald Tsang Yam-kuen has recognised that maintaining Hong Kong's competitiveness is a major challenge. He has also identified the risk of global recession, in line with worries of the business sector and Hong Kong people.
However, it is doubtful that rushing into drafting the Competition Bill over a short period of time in the next few months can really help us face the challenges. The business community is more concerned that the legislation will only create more uncertainty and increase the cost of doing business, such as expenditure on legal advice, accounting and consulting services, which will weaken our ability to weather the financial turmoil as well as cause long-term problems.
A competition law has to be well designed and minimalist. It must also have enough safeguards to address business concerns while being pro-market and business friendly.
Unfortunately, a number of the proposals tabled by the government in the public consultation this year are full of flaws and ambiguity. Many businesses, including small and medium-sized enterprises, as well as big corporations, find these unacceptable.
The government needs to address concerns raised by business before it finalises the bill. Hong Kong will be moving in the right direction by introducing a competition law but risks creating too much uncertainty for business if legislation is rushed to meet a stiff deadline.
