The View | A competition regulator is the only hope for Hong Kong
An antitrust commission would restrict cartels, drive economic growth, create jobs, ease property prices and increase the standard of living
One balmy summer’s day in 1973, a taxi drew up at the west gate of Kai Tak airport and a senior police officer climbed out, adorned with the brass of rank and coloured bravery ribbons.
The gate constable recoiled at his airside pass and waved him through to a quiet retirement in London. It was not to be. Chief superintendent Peter Godber was soon extradited following a tidal wave of public disgust at corruption. In the 10 years before, the triads and the police together were estimated to have taken HK$10 billion in “tea money” – more than three times the profits of HSBC Holdings at the time.
Instead of the dead hand of government, we have the constriction of cartels, squeezing every cent of hope from our citizens
It took the strong leadership of governor Sir Murray MacLehose to establish the Independent Commission Against Corruption with draconian powers to root out and punish corrupt persons. The ICAC and indeed the Securities and Futures Commission were all established as solutions to a crisis. Again we are in crisis – this time it is a crisis of social justice.
Carrie Lam Cheng Yuet-ngor has had more good advice in the past few days to last her whole term. She could become Hong Kong’s greatest chief executive ever. Her honeymoon will be short. There is not much time.
Again, there is a simple administrative solution to crisis – establish a competition commission. Hands up those who knew we have one already? No. Thought not. It has just brought its first case against five tenderers to install a server for the Young Women’s Christian Association. The case will cost more than any likely penalties and will deter no one. Who cares about a server in a cartel city like Hong Kong? This is a case of fiddling while Rome burns. Get serious.
Its fetish with a pathetic little server shows the Competition Commission needs teeth and stature to break up the rampant abuse of anti-competitive positions and price fixing by cartels in Hong Kong. It would have strict statutory powers over company directors to abide by antitrust legislation with similar penalties to those dished out by the ICAC or the SFC. It will have to be feared for doing the right thing. The commission would also be politically connected and well-financed.