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WEDNESDAY, MAY 27, 1992
THE ANNUAL ROADSIDE AND TAXI STAND SURVEYS CONDUCTED BY THE TRANSPORT DEPARTMENT SHOW THAT THE OVERALL AVAILABILITY OF URBAN/NT TAXI SERVICE
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REMAINED RELATIVELY STABLE IN THE PAST THREE YEARS. HOWEVER. NOTWITHSTANDING A GENERAL REDUCTION IN PASSENGER WAITING TIME AT TAXI STANDS, THE HEADWAY BETWEEN VACANT TAXIS AT SOME LOCATIONS HAS INCREASED. THIS SUGGESTS THAT MORE TAXIS MAY CONTINUE TO BE NEEDED TO MEET DEMAND.
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AS TAXIS ARE UNECONOMIC ROAD USERS THERE IS A NEED TO REGULATE - THEIR SUPPLY. WE WILL HAVE TO CONSIDER CAREFULLY WHETHER MORE TAXIS WILL ADD TO ROAD CONGESTION AND UNDERMINE THE VIABILITY OF THE TAXI TRADE.
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SOME ARE CONCERNED THAT A HIGH TAXI LICENCE PREMIUM WILL LEAD INCREASE IN TAXI FARES. I WISH TO POINT OUT THAT LICENCE PREMIUM NOT A FACTOR FOR ASSESSING TAXI FARE INCREASES. NOR IS IT EVER INCLUDED. AS OPERATING COST IN THE ASSESSMENT. THIS IS BECAUSE THE LICENCE PREMIUM IS ESSENTIALLY A CAPITAL INVESTMENT. MOREOVER, NOT ALL TAXI DRIVERS ARE LICENCE HOLDERS AND THE LATTER BOUGHT THEIR LICENCES AT DIFFERENT PRICES. SOME EXPECT THAT AS LICENCE PREMIUM GOES UP, THERE WOULD BE GREATER PRESSURE TO DEMAND HIGHER RENTAL WHICH WOULD IN TURN TRANSLATE INTO PRESSURE FOR HIGH FARES. THERE ARE, HOWEVER, NO DATA TO PROVE ANY DIRECT CORRELATION BETWEEN A RISE IN PREMIUM AND AN INCREASE IN TAXI RENTAL.
SOME THINK THAT TAXI SERVICES HAVE BECOME INADEQUATE BECAUSE A LARGE NUMBER OF LICENCES ARE KEPT BY TAXI TRADING COMPANIES PURELY FOR SPECULATION. THIS IS SIMPLY NOT TRUE. A FEW TAXI TRADING COMPANIES HAVE RECENTLY SUCCEEDED IN BIDDING FOR MANY NEWLY-ISSUED LICENCES. BUT THERE IS LITTLE ROOM FOR WITHHOLDING OF LICENCES. THIS IS BECAUSE SUCCESSFUL TENDERERS ARE OBLIGED TO APPLY FOR REGISTRATION OF THE NUMBER OF TAXIS ALLOCATED WITHIN SIX MONTHS. THE TRANSPORT DEPARTMENT STATISTICS SHOW THAT 90% OF THE TAXI LICENCES ARE OWNED BY INDIVIDUALS.
SOME HAVE CRITICIZED THE ROLES PLAYED BY TAXI TRADING COMPANIES IN THE TAXI LICENCE MARKET. THE 1988 REVIEW REVEALED THAT MANY PROSPECTIVE TAXI OWNERS PREFERRED TO DEAL WITH THESE COMPANIES INSTEAD OF BIDDING IN THE TENDER EXERCISE. THE COMPANIES SERVED AS MIDDLEMEN TO PROVIDE A PACKAGE OF SERVICES, INCLUDING ACTING AS GUARANTORS IN ARRANGING LOANS WITH FINANCIAL INSTITUTIONS. WE WILL EXAMINE THE ROLES OF THESE COMPANIES AGAIN AND CONSIDER MEASURES TO PREVENT ANY MANIPULATION OF THE LICENCE MARKET TO THE DETRIMENT OF GENUINE TAXI OPERATORS.
WE ARE CONCERNED THAT THE PREMIUM LEVEL HAS RECENTLY RISEN SHARPLY BEYOND THE PROFITABILITY OF THE TAXI TRADE. THERE IS REASON TO SUSPECT THAT TAXI LICENCES HAVE BECOME A PROFITEERING COMMODITY TO SOME SPECULATORS WHO ARE NOT END-USERS. ALTHOUGH WE HAVE NO INTENTION TO INTERFERE WITH INVESTMENT IN A FREE MARKET, WE SHOULD PREVENT MANIPULATIVE SPECULATION WHICH UNDERMINES THE HEALTH OF THE TAXI PROBLEM IS BEING CRITICALLY EXAMINED IN OUR CURRENT
TRADE. REVIEW.
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/SOME CONSIDER