WEDNESDAY, JANUARY 18, 1984

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+EXCESSIVE CONTROL+ OVER TAXIS CLAIMED

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THE HON MRS SELINA CHOW CRITICISED THE ADMINISTRATION FOR ITS *EXCESSIVE CONTROL OVER THE VIABILITY OF THE TAX! TRADE+.

+ON THE ONE HAND IT SEEKS TO CONTROL SUPPLY AND DEMAND, AS WELL AS POTENTIAL REVENUE TO THE TRADE, BY REGULATING THE NUMBER OF LICENCES ISSUED AND THE FARES CHARGED, SHE SAID.

+ON THE OTHER IT DETERMINES A SUBSTANTIAL PROPORTION OF THE OPERATING COSTS OF THE TRADE THROUGH TENDERING, REGISTRATION TAX, ANNUAL LICENCE FEE AND SURCHARGE ON DIESEL ENGINES, LEAVING LITTLE ROOM FOR OPERATORS TO MANOEUVRE.+

MRS CHOW SAID THIS WAS +CERTAINLY AN EXCEPTION TO THE OVERALL SPIRIT OF FREE ENTERPRISE ON WHICH MUCH OF HONG KONG'S SUCCESS IS BASED.

EARLIER IN HER SPEECH IN THE LEGISLATIVE COUNCIL, MRS CHOW SAID THAT SHE OPPOSED THE BILLS BECAUSE THE TIMING WAS WRONG. +WHATEVER CONSULTATION HAD BEEN UNDERTAKEN HAD OBVIOUSLY NOT BEEN ADEQUATE AND THOROUGH ENOUGH TO TAKE INTO CONSIDERATION THE VIEWS OF THE TAXI TRADE AND SHE DID NOT AGREE WITH THE LOGIC ON WHICH THE PROPOSED BILLS WERE BASED, SHE SAID.

+AS THE SECRETARY FOR TRANSPORT STATED QUITE CLEARLY, THE PRIMARY OBJECTIVE MUST BE TO KEEP HONG KONG MOVING.

+HOWEVER, APART FROM THE MORATORIUM ON URBAN TAXIS, I FAIL TO SEE HOW ANY OF THE OTHER PROPOSALS IN THE PACKAGE WOULD HELP TO KEEP HONG KONG MOVING ANY MORE SMOOTHLY THAN IT HAS DONE, SHE SAID.

+IN FACT THE INCREASE IN TAXI FARE MIGHT LEAD TO A DROP IN DEMAND, RESULTING NOT SO MUCH IN ADDITIONAL TAXI MOVEMENT, FOR WHETHER VACANT OR OCCUPIED THEY WOULD REMAIN ON THE ROAD ANYWAY BUT IN MORE EMPTY TAXIS CRUISING, THEREBY PUSHING UP THE DISTANCE PRESENTLY COVERED BY VACANT TAXIS.

+ IF THE PURPOSE IS TO UPGRADE THE EFFICIENCY OF TAXI TRANSPORT, THEN SURELY ANY MEASURES INTRODUCED SHOULD BE AIMED AT CUTTING DOWN THE CRUISING TIME OF VACANT TAXIS, SHE SAID.

SHE FELT THAT TO DENY TAXIS PUBLIC TRANSPORT STATUS COULD NOT BE JUSTIFIED, ESPECIALLY WHEN THE NUMBER OF PASSENGERS THEY CARRIED EACH DAY (1.03 MILLION) HAD BEEN SHOWN IN A SEPTEMBER 1983 REVIEW TO BE ALMOST AS MANY AS THE MTR (1.17M), SHE SAID.

SHE MAINTAINED THAT TAXIS WERE +A MODE OF TRANSPORT WIDELY USED BY A FAIRLY MAJOR PORTION OF OUR TRAVELLING PUBLIC+.

ON THE SURCHARGE ON DIESEL ENGINES, SHE RECALLED THAT THIS WAS INTRODUCED IN MAY 1982 BECAUSE THERE WAS GOING TO BE AN INDIRECT TAX ON PETROL AND NONE ON DIESEL FUEL.

+LAST YEAR THE INDIRECT TAX ON DIESEL WAS INTRODUCED, BUT THE SURCHARGE REMAINED.

+THIS ALREADY REPRESENTS A DOUBLE TAX ON DIESEL ENGINES. THE FACT THAT TWICE THE AMOUNT IS NOW PROPOSED FOR TAXIS SEEMS DOUBLY UNFAIR, SHE NOTED.

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