XN000022-1982-05-05 — Page 5

WEDNESDAY, MAY 5, 1982

HOWEVER, IN THE CASE OF DIESEL-ENGINED PRIVATE CARS, USING DIESEL OIL, IT WAS PROPOSED TO ADD A FURTHER $1 000 PER ANNUM TO THE ANNUAL LICENCE FEES. THIS WAS TO INJECT A SIMILAR EFFECT TO DIESEL RUN PRIVATE CARS AS THE INCREASE IN DUTY ON LIGHT OILS WOULD HAVE ON PETROL-DRIVEN CARS. THERE ARE ABOUT 4 500 DIESEL-ENGINED VEHICLES REGISTERED AT PRESENT.

MR SCOTT EXPLAINED THAT THE AMOUNT OF $1 000 WAS BASED ON THE ASSUMPTION THAT A PRIVATE MOTORIST AVERAGED 8 000 MILES A YEAR, CONSUMING 320 GALLONS OR 1 453 LITRES PER ANNUM ON THE BASIS OF 25 MILES PER GALLON.

THE PROPOSED INCREASE IN DUTY ON LIGHT OILS WILL ALSO AFFECT A SMALL NUMBER OF LIGHT AIRCRAFT AND BOAT OWNERS AND USERS, ADDING APPROXIMATELY 25 PER CENT TO THEIR FUEL BILLS.

+AS THEY ARE NOT THE TARGET OF THESE MEASURES, THIS IS INDEED REGRETTABLE,+ SAID MR SCOTT, BUT THE PRACTICAL DIFFICULTIES OF DIFFERENTIAL DUTY ARRANGEMENTS UNHAPPILY RULE OUT SPECIAL ARRANGEMENTS BEING MADE FOR THESE TWO CATEGORIES.

+ IT IS SCANT CONSOLATION TO THEM, BUT AT LEAST THE INCREASE ONLY RESTORES THE LEVEL OF INCIDENCE OF DUTY,+ HE ADDED.

MR SCOTT SAID TAXIS ARE A NECESSARY AND USEFUL ADJUNCT TO PUBLIC TRANSPORT AND WERE THEREFORE LEFT OUT OF THE PROPOSALS, TOGETHER WITH GOODS VEHICLES, PUBLIC AND PRIVATE BUSES AND PUBLIC LIGHT BUSES.

+BUT THERE CAN BE NO ASSUMPTION THAT TAXIS WILL ALWAYS BE TREATED AS FAVOURABLY AS AT PRESENT, HE SAID, ADDING THAT THE POSITION WOULD BE CLOSELY MONITORED.

AND VERY QUICK ACTION WOULD BE TAKEN IF THERE WAS ANY EVIDENCE OF A MOVE TOWARDS PUBLIC LIGHT BUSES AS A SUBSTITUTE FOR PRIVATE CARS, HE WARNED.

AS FOR CONTRACT HIRE CARS, THESE WERE PRIVATE CARS OPERATING WITH A LICENCE TO CARRY PASSENGERS AND THE PROPOSED NEW MEASURES WOULD APPLY TO THEM.

MR SCOTT SAID THE PROPOSED MEASURES MAY NOT BE THE ULTIMATE SOLUTION.

+ IT IS PROPOSED TO TRY THEM, TO ASSESS THEIR EFFECTS, AND IF NECESSARY ACCENTUATE THEM OR BRING IN ADDITIONAL MEASURES TO ACHIEVE THE OBJECTIVE OF GETTING THE GROWTH RATE OF PRIVATE VEHICLES BACK TO FIVE PER CENT PER ANNUM, WHICH WE REGARD AS MANAGEABLE.+

THE POSITION, HE ADDED, COULD BE USEFULLY REVIEWED WITHIN TWELVE MONTHS.

*THE EFFICIENT FLOW OF PEOPLE AND GOODS IS SO VITAL TO THE ECONOMIC AND SOCIAL HEALTH OF HONG KONG THAT IT MUST BE UNDERSTOOD THAT GOVERNMENT MEANS BUSINESS AND INTENDS TO ACHIEVE ITS OBJECTIVE, HE STRESSED.