XN000022-1984-01-18 — Page 20

WEDNESDAY, JANUARY 18, 1984

18

LOGIC BEHIND TAXI MEASURES CRITICISED

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THE HON STEPHEN CHEONG SAID HE OPPOSED THE TWO BILLS BECAUSE HE COULD NOT RECONCILE THE LOGIC BEHIND THE PROPOSED TAX AND OTHER INCREASES WITH THE LOGIC BEHIND THE PROPOSAL TO IMPOSE A TEMPORARY MORATOR FUM ON TAXI LICENCES.

+ IN MY OPINION, THE TWO PROPOSALS, IF IMPLEMENTED TOGETHER, WILL GENERATE CONTRADICTORY EFFECTS, HE SAID.

HE POINTED OUT THAT ACCORDING TO THE TAXI REVIEW REPORT, TAXIS WERE MAJOR CONTRIBUTORS TO ROAD CONGESTION, AND HE FELT THAT THE PROPOSED FISCAL MEASURES WOULD HAVE THE EFFECT OF GENERATING EVEN GREATER CONGESTION, BECAUSE MORE EMPTY TAXIS WOULD BE CRUISING AROUND THAN AT PRESENT.

TAXIS OPERATORS WERE ALREADY OPERATING ON RELATIVELY THIN PROF IT MARGINS AND ON A KNIFE EDGE OF LIQUIDITY SO THE INCREASED CHARGES WERE UNLIKELY TO BE ABSORBED AND THE PROPOSED INCREASES WERE BOUND TO BE PASSED ON TO CONSUMERS, IN THE FORM OF INCREASES

IN FARES.

AT PRESENT, ALREADY 40 PER CENT OF ALL TAXIS WERE CRUISING AROUND EMPTY, HE SAID.

+THIS IMPLIES THAT THE CURRENT LEVEL OF FARES HAS ALREADY GIVEN RISE TO A CERTAIN LEVEL OF CONSUMER RESISTANCE.

+ IF FARES ARE TO BE FURTHER INCREASED, THE LEVEL OF PATRONAGE WILL SURELY BE REDUCED FURTHER, HE SAID.

→THIS MEANS MORE EMPTY TAXIS WILL CRUISE AROUND TO A GREATER EXTENT THAN AT PRESENT. THIS MUST IN TURN CAUSE EVEN GREATER CONGESTION, LEADING TO MORE TIME BEING LOST IN CONVEYING PEOPLE AND GOODS, WITH ALL THAT ENTAILS FOR THE EFFICIENCY OF OUR ECONOMY, HE ADDED,

HAVING ANALYSED THE STRUCTURE OF THE TAXI TRADE IN HONG KONG, MR CHEONG POINTED OUT THAT IN ANY INCREASE OF OPERATING COSTS, IT WAS THE TAXI DRIVER ALONE WHO SUSTAINED A REDUCTION IN REAL INCOME AND WHO SUFFERED MOST.

+ IT SEEMS TO BE THAT THE DIFFICULTIES FACED BY DRIVERS, WHO REPRESENT NUMERICAL MAJORITY IN THE TRADE, IS NOT READILY UNDERSTOOD BY THE ADMINISTRATION. THIS IS ONE FACET OF THE TRADE THAT I BELIEVE THE REVIEW COMMITTEE HAS NOT EXAMINED ADEQUATELY.

+GIVEN THE IMPORTANCE OF THE NEED TO UNDERSTAND THE CONDITIONS AND THE DIFFICULTIES UNDER WHICH TAXI DRIVERS EARN THEIR LIVING, AND HAVING REGARD TO THE FACT THAT THERE IS NO ORGANISATION THAT REPRESENTS THE IR INTERESTS. THE TRANSPORT DEPARTMENT SHOULD CONSIDER WAYS AND MEANS BY WHICH THE VIEWS OF TAXI DRIVERS COULD BE TAPPED AND BROUGHT TO THE ATTENTION OF THOSE WHO FORMULATE TRANSPORT POLICY.

!+ THIS IS

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