Session No. 5 File name : cedb(cit)- doc



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Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)067







Question Serial No.







0448




Head :

152 Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

Subhead (No. & title) :
















Programme :

(5) Subvention: Consumer Council




Controlling Officer :

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)




Director of Bureau :

Secretary for Commerce and Economic Development





Question :
In face of the increasing number of consumer complaints in recent years, how much resources will the Consumer Council allocate for handling complaints in 2010-11? When compared with 2009-10 and 2008-09, how much has it increased or decreased in percentage terms? What was the average cost per case handled by the Consumer Council in these years?

Asked by : Hon. LEE Wai-king, Starry
Reply :
The Complaints and Advice Division (C&AD) of the Consumer Council is responsible for handling consumer complaints. Apart from handling complaints, the C&AD is also responsible for other tasks, including answering consumer enquiries (up to 130 000 per year).
The major expenses of the C&AD are personal emoluments and office expenses. The Consumer Council does not keep separate expense records for handling complaints and enquiries (in fact, most of the staff in the C&AD have to handle both consumer complaints and enquiries) and therefore cannot provide information on the magnitude of changes in the amount of resources used for handling complaints and the average cost of handling each complaint.
The personal emoluments and office expenses of the whole C&AD, and the number of complaints received in the respective years are set out below:





Expenses
($ million)

Average expenses per month ($ million)

Number of complaints

2007-08

22.76

1.90

36 847

2008-09

23.84

1.99

  44 409Note  

April 2009 to

January 2010



20.42

2.04

  26 668

Note: There was a sharp increase in consumer complaints in 2008-09 due to the Lehman Brothers incident.




Signature










Name in block letters

MISS YVONNE CHOI







Post Title

Permanent Secretary for Commerce and Economic Development

(Commerce, Industry and Tourism)









Date

18.3.2010





Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)068







Question Serial No.







0449



Head :

152 Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

Subhead (No. & title) :
















Programme :

(5) Subvention: Consumer Council




Controlling Officer :

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)




Director of Bureau :

Secretary for Commerce and Economic Development






Question :
The administration stated that it would review the operation of the Consumer Legal Action Fund in 2010-11 to strengthen consumer protection. What are the details and timetable of the review? Will the Administration also review the current practice of Consumer Council of naming shops that engaged in unfair sales practices, including extending the coverage of exemption clauses to the Council? This would enable the Council to act without fear of being sued for defamation by the shops so named?
Asked by : Hon. LEE Wai-king, Starry
Reply :
The Consumer Council is the trustee of the Consumer Legal Action Fund (CLAF). In August 2009, the Council set up a task force, comprising members of the Council and the Management Committee of CLAF, to conduct a strategic review on CLAF. The review covers the effectiveness of CLAF and its operational arrangements. The task force will put forward recommendations to the Management Committee of CLAF, with a view to enhancing the work of CLAF and assisting consumers with meritorious claims in a more effective manner. The review is underway. The Council will submit recommendations to the Administration after the review has been completed.
Currently, the Council has established guidelines and procedures governing whether and how a company adopting unfair trade practices should be named. Factors for consideration include the number of complaints received, the amount of money involved, whether the case has aroused public concern, whether different quarters of the public may potentially be affected, and the prevalence of the practice in question. Since naming a company will adversely affect its reputation, the Council has to handle this matter in a meticulous, fair and reasonable manner. This approach not only protects the interests of consumers and legitimate traders, but also upholds the Council’s credibility. Both the Government and the Council will monitor the operation of the existing mechanism.

Signature










Name in block letters

Miss YVONNE CHOI







Post Title

Permanent Secretary for Commerce and Economic Development

(Commerce, Industry and Tourism)









Date

18.3.2010


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