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Mr Barma proposed to implement the following:
raising cross harbour tunnel tolls for private cars and taxis to $30 between 7 am and 9 pm by increasing passage tax, (except on Sundays and Public Holidays), but retaining the $10 toll overnight;
discontinuing deductions for company cars for profits tax purposes.
Mr Barma said all the proposed fiscal measures could not be implemented until the necessary legislative amendments were completed, hopefully in the first half of the 1995/96 Legislative Council session.
"If tax increases are introduced then some of the extra revenue will be allocated to a Transport Fund for use in improving transport services," he added.
Apart from the use of fiscal measures as an interim means to address traffic congestion, the Government will improve traffic management including giving greater priority to buses in the use of road space.
The Government is seeking funds to engage consultants to study the possibility of providing bus-only lanes throughout the territory.
With regard to longer term solutions of the problem, Mr Barma said the Government would study the introduction of Electronic Road Pricing (ERP), which had been widely supported by the public.
"Funds have been earmarked for a feasibility and technical study on ERP, and it is hoped that this will begin in early 1996,
"The Government will introduce ERP pilot schemes before considering implementing a full ERP system."
In addition, the proposed package includes the following ongoing measures:
constructions of new railways (i.e. planning for the implementation of the Railway Development Strategy);
commitment to building more roads ($30 billion to be spent in the next five years);
improvements in the management of road openings; and
stricter enforcement of traffic legislation and to consider higher fixed penalties.