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Following is a question by the Hon Sophie Leung and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (December 3):
Question:
The Air Pollution Control (Fuel Restriction) (Amendment) Regulation 2008 (Cap. 311 sub. leg. I) provides that only ultra low sulphur diesel (ULSD) with a sulphur content of not more than 0.005% by weight may be used in industrial and commercial processes. Quite a number of owners of garment bleaching and dyeing factories have relayed to me that since the commencement of the Regulation on October 1 this year, their monthly expenditure on fuels has increased by 50%. In this connection, will the Government inform this Council:
(a) given that only ULSD with a sulphur content of 0.001% is on sale in the market at present, whether the Government will require oil companies to introduce ULSD which has a higher sulphur content but still meets the above provision for the above factory owners to choose to buy; and
(b) whether it will consider providing subsidies for a period of at least one year for the above factory owners to purchase ULSD with a sulphur content of 0.001%; if it will not, whether it will implement other measures to alleviate the plight of such factory owners?
Reply:
President,
(a) The Hong Kong oil market has all along been operating on the principle of free economy. The oil companies would consider the needs of the market, regulatory requirements and other related economic factors, and then decide on the type of fuel to be imported, the product combination and the sale strategy. The government, on the other hand, endeavours to warrant reliable supply of fuel oil, maintain a free market and eliminate any hurdles to newcomers to the market in order to facilitate competition. Regarding the situation mentioned by the Honourable Sophie Leung, we have approached the oil companies for more detail. According to the information thus collected, there are already oil companies supplying to their clients industrial diesel with a maximum sulphur content of 0.005%. We would recommend factory operators should approach more oil companies and through the existing market mechanism, to source the type of diesel that suits their operational need.
(b) The economy of Hong Kong has all along adopted the principle of free market and fair competition. Using diesel for industrial operation is currently duty free. In accordance with the principle of free economy and fairness, the Government will not offer subsidy on the use of industrial fuels.
Ends/Wednesday, December 3, 2008
Issued at HKT 14:31
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