XN000022-1984-02-29 — Page 32

WEDNESDAY, FEBRUARY 29, 1984

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HE SAID THE REAL COST OF USING THE TUNNEL TODAY IS APPROXIMATELY ONE THIRD OF THE LEVELS CHARGED IN 1972 AND UNCHANGED SINCE THEN, IF NEW RATES WERE TO BE SET TO OFFSET INFLATION ONLY, THEY WOULD REQUIRE TO BE THREE TIMES HIGHER THAN THEY ARE NOW.

+ IT WOULD OBVIOUSLY BE IMPROPER IF THESE INCREASED CHARGES WERE TAKEN BY THE CROSS-HARBOUR TUNNEL COMPANY IN ORDER TO INCREASE THE IR PROFITS. THE INCREASE SHOULD BE TAKEN BY THE REVENUE AND USED IN THE INTERESTS OF THE COMMUNITY AS A WHOLE.

+ IT IS, HOWEVER, REASONABLE IF THESE NEW MEASURES REDUCE CROSS-HARBOUR TRAFFIC, WHICH IS THE IR SPECIFIC PURPOSE, THAT THE COMPANY SHOULD RECEIVE EQUITABLE COMPENSATION FOR REVENUE LOST.

+BE THAT AS IT MAY, A SEPARATE APPLICATION FOR AN INCREASE IN THE TOLL CHARGES HAS BEEN RECEIVED WITHIN THE LAST FORTNIGHT FROM THE CROSS-HARBOUR TUNNEL COMPANY. THIS WILL BE CAREFULLY EXAMINED, BUT UNTIL THIS HAS BEEN DONE IT IS NOT POSSIBLE FOR ME TO SAY WHETHER ANY INCREASES THAT MAY BE APPROVED AS A RESULT OF THIS APPLICATION WILL BE ADDITIONAL TO THE PROPOSED CROSS-HARBOUR TUNNEL TAX, SIR JOHN SAID,

THE FINANCIAL SECRETARY SAID THAT APART FROM TRAFFIC MANAGEMENT REASONS HE HAD ALSO TO CONSIDER HIS MAJOR THEME: TO COUNTER INFLATION AND CONSUMER PRICE INDEX INCREASES ON THE LESS WELL OFF.

+ IT HAS THEREFORE BEEN AGREED THAT THE NEW TAX SHOULD BE LOWER THAN IS PRIMA FACIE INDICATED AND SHOULD NOT FALL AT ALL ON OMNIBUSES AND PUBLIC LIGHT BUSES.

→THE PROPOSED TAXES ARE $2 FOR A MOTORCYCLE, AND $5 FOR PRIVATE CARS, TAXIS, PRIVATE LIGHT BUSES, AND ALL GOODS VEHICLES. TAXIS WILL BE ENTITLED TO IMPOSE A MAXIMUM ADDITIONAL CHARGES OF $20 INSTEAD OF $10 AT PRESENT.+

SIR JOHN SAID THE ADDITIONAL ANNUAL REVENUE WAS EXPECTED TO AMOUNT TO ABOUT $140 MILLION AFTER TAKING ACCOUNT OF POSSIBLE REDUCTION IN USAGE - WHICH WAS HOPED.

SIR JOHN EMPHASISED THAT HE WOULD REGARD THIS INCREASED REVENUE AS ESPECIALLY AVAILABLE FOR TRANSPORT PURPOSES.

- -

+ IT WOULD BE IMPROPER TO ACCEPT ANY STRICT HYPOTHECATION, BUT I CONFIRM AGAIN IF FURTHER CONFIRMATION IS NEEDED THAT IT IS GOVERNMENT'S POLICY TO PROCEED WITH ALL AGREED PROGRAMMES AND POLICIES AND ON A JUDICIOUS BASIS TO INTRODUCE NEW ONES.

+THESE INCLUDE IMPROVEMENTS IN ALL TRAFFIC FIELDS. FOR THIS THE COMMUNITY MUST PAY. IN PARTICULAR WE ALL ACCEPT THAT A NEW FIXED CROSS-HARBOUR CROSSING IS NEEDED. THIS WILL CLEARLY INVOLVE CONSIDERABLE GOVERNMENT EXPENDITURE, HE SAID.

SIR JOHN SAID THE INCREASES IN BUOYS AND ANCHORAGE FEES, FEES FOR DEPOSIT-TAKING INSTITUTIONS AND TOLLS FOR THE LION ROCK TUNNEL WOULD YIELD ABOUT $35 MILLION IN ADDITIONAL REVENUE.

/HE SAID