XN000022-1979-01-10 — Page 12

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WEDNESDAY, JANUARY 10, 1979

AS REGARDS THE CONCERN EXPRESSED BY SOME OF THE UNOFFICIAL MEMBERS OVER THE INTRODUCTION OF THE PACKAGE, MR. JONES SAID MOST OF THE MATTERS RAISED BY THEM +ARE PROBABLY SOMEWHAT EXAGGERATED AND THAT SOME ARE, INDEED, MUTUALLY CONTRADICTORY+,

+FOR INSTANCE,+ HE SAID, IF THE FARE INCREASES REALLY ARE AS STRINGENT AS MR. CHEONG-LEEN BELIEVES, THEN THERE OUGHT TO BE PLENTY OF TAXIS AVAILABLE FOR THOSE WHO WISH TO HIRE THEM AT THESE FARES.

+IN SUCH CIRCUMSTANCES, COMPETITION SHOULD ENSURE THAT THOSE DRIVERS WHO TRY TO COMMIT MALPRACTICES WILL VERY SOON FIND THAT THEY HAVE NO PASSENGERS, MR. JONES SAID.

MR. JONES ALSO BELIEVED THAT THE NATURAL FORCES OF THE MARKET WOULD MODERATE THE BARGAINING PROCESS BETWEEN OWNERS AND DRIVERS OVER RENTALS AND THAT A LEVEL WOULD BE ESTABLISHED WHICH WOULD PROVIDE THE DRIVERS WITH SUFFICIENT INCOME TO INDUCE SUFFICIENT OF THEM TO ENGAGE IN THE TRADE.

ON THE TENDER SYSTEM, MR. JONES SAID THE PROBLEM WAS THAT, NO MATTER HOW CAREFUL THE GOVERNMENT TRIED TO DEVISE A SYSTEM OF RESTRICTED TENDERING CONFINED TO TAXI DRIVERS ONLY, OR ISSUING LICENCES FREE TO LONG SERVICE DRIVERS, THERE REMAINED THE FACT THAT THERE WAS A MARKET FOR TAXI LICENCES, QUITE APART FROM THE TENDER SYSTEM, AND THAT LICENCES WOULD STILL BE CHANGING HANDS IN THAT MARKET AT HIGH PRICES.

+SO DOUBT WHETHER WHAT IS PROPOSED WILL TURN OUT TO BE PRACTICABLE. BUT I PROMISE THAT THIS ASPECT ALSO WILL BE EXAMINED CAREFULLY DURING THE COMING MONTHS AND WILL BE CONSIDERED AGAIN

IN THE REVIEW, MR. JONES SAID.

HE ALSO EXPRESSED DOUBT ON WHETHER THE RAISING OF TAXI FARES WOULD HAVE VERY MUCH EFFECT ON OTHER TRANSPORT FARES, EXCEPT TO THE EXTENT THAT DEMAND WAS SHIFTED.

MR. JONES ALSO POINTED OUT THAT MR. CHEONG-LEEN

WAS WRONG IN SAYING THAT THE TENDER SYSTEM NOW REQUIRED EACH TENDERER TO BID FOR A MINIMUM OF 10 NEW TAXIS.

IT IS TRUE THAT A DEPOSIT OF $25,000 IS NOW REQUIRED, BUT TENDERS ARE STILL ACCEPTED FOR SINGLE TAXIS OR FOR ANY NUMBER UP TO THE MAXIMUM OF 300,+ HE SAID.

FINALLY, MR. JONES SAID HE WOULD BE MOVING AN AMENDMENT DURING THE COMMITTEE STAGE OF THE BILL TO MAKE IT CLEAR THAT THE SANCTION OF THE REMOVAL OF DRIVING LICENCES FOR TAXI MALPRACTICES WOULD BE CONFINED TO THE CULPRITS' TAXI DRIVING LICENCES AND WOULD NOT AFFECT THEIR LICENCES TO DRIVE PRIVATE CARS OR OTHER VEHICLES.

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