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TRANSPORT
Tackling Congestion on the Roads The 1979 White Paper on Internal Transport Policy predicted that given limitations on the expansion of the urban road system, measures would be necessary to restrain the rate of growth of the vehicles fleet, in order to limit congestion. Transport policy measures introduced in May 1982 doubled the first registration tax for private vehicles, broadly tripled the annual licence fees and raised duty on petrol. The 1983 Budget increased vehicle licence fees and the duty on petrol and diesel oil for fiscal reasons. From May 1982 to the end of 1984 the number of private cars registered dropped by 16 per cent. The number of private cars licensed during 1983 fell by six per cent compared with a growth of 11 per cent and two per cent in 1981 and 1982 respectively. The number of private cars licensed during 1984 fell by nine per cent compared with the number licensed in 1983. The number of private cars licensed at the end of 1984 was 182 985, compared with 201 000 at the end of 1983. For motorcycles, the figures were 22 417 and 26 000 respectively.
The objective of the May 1982 measures was to restrict the rate of growth in private vehicles to five per cent, but the economic recession accentuated their effect. The lesson of past experience is, however, that as the economy revives, the effect of increased taxes and licences will diminish and vehicle growth will resume. Details are at Appendix 32. The government believes that such fiscal measures, although necessary and effective, are not the most equitable means to combat congestion, and during 1982 and 1983 there was a thorough examination of alternatives which would tackle the problem more directly by reducing vehicle usage in congested areas, particularly at peak periods. In 1983, the government approved a pilot stage of an Electronic Road Pricing (ERP) System. Consult- ants were commissioned to estimate transport benefits, to develop and test the main technological components on Hong Kong's roads, and to make a full report.
The pilot stage is proceeding on schedule and the electronic equipment has performed well in factory tests. The testing of the system on-street in Hong Kong will begin in early 1985, involving some 2 600 vehicles of all types, and employing 18 electronic loop sites. forming a zone around Central District. The data information will be collated at a computerised control centre to produce specimen accounts for the vehicles' road use at peak periods. The testing of the pilot scheme will be completed in June 1985. A full assessment of the reliability and efficiency of equipment and of the forecast benefits for all road users will be carried out, including extensive public consultation, so that the government will be in a position to decide whether to introduce a full system.
Port Development and Shipping Services
As one of the world's major ports, Hong Kong has earned a world-wide reputation for efficiency in continuing to meet the increasing demands of modern shipping requirements. The tonnage of shipping visiting the port, the volume of cargo handled and the passenger numbers reflect the optimum utilisation of all port facilities. Victoria Harbour, lying between Hong Kong Island and Kowloon, is regarded as one of the most perfect natural harbours in the world. It has an area of 5 000 hectares, and varies in width from 1.2 to 9.6 kilometres.
The administration of the port is the responsibility of the Director of Marine. He is advised by various committees through which the closest liaison with shipping and commercial interests is maintained to ensure that facilities and services are developed to meet the changing needs of Hong Kong and of ships using the port.
In 1984, some 11 800 ocean-going vessels and 71 200 river-trade vessels called at Hong Kong and loaded and discharged more than 47 million tonnes of cargo. This included 31