Way forward: Financial Secretary Henry Tang discusses the results of the consultation on cross-sector competition law and the establishment of a competition commission.

A public consultation has found that the community backs a cross-sector competition law and the establishment of a competition commission, Financial Secretary Henry Tang says. The Government will start drafting appropriate legislation.

Releasing the consultation results today, Mr Tang said the Government, in drafting the new competition law, will continue to engage the public to enhance their understanding of its content and implementation. It will take into account the concerns that have been raised by some respondents in drawing up a regulatory framework that suits Hong Kong.

He said the Government received 114 written submissions, 60 pro forma submissions and a 1,200-signature petition during the three-month consultation that began in November.

Many respondents said that anti-competitive conduct can occur in any sector and it would be unfair to target only certain sectors or industries for regulation.

Some respondents from the business sector have expressed concern that although the aim of such a law is to maintain a competitive environment, small and medium enterprises may become the target of complaints when the law is in place.

Legislative points

In a Legislative Council paper, the Government said the main aspects of the legislation might include:

* the definition of anti-competitive conduct to be covered and the introduction of an appropriate prohibition against such conduct;

* the establishment of a competition commission as the regulatory authority;

* a mechanism for exempting from the application of the law conduct that was considered to be in the wider economic or public interest;

* provisions related to confidentiality and a leniency programme; and,

* the penalties that are applicable to a breach of the prohibition against anti-competitive conduct, refusal to co-operate with investigations or unauthorised disclosure of confidential information.

The Government will brief legislators on the details of the report at the meeting of Panel on Economic Services on March 26.