XN000022-1987-03-11 — Page 41

WEDNESDAY, MARCH 11, 1907

1

39

SUB-COMMITTEE SET UP TO REVIEW TAXI POLICY

*****

THE TRANSPORT ADVISORY COMMITTEE HAS SET UP A SUB-COMMITTEE UNDER THE CHAIRMANSHIP OF MR JACKIE CHAN TO CARRY OUT AN OVERALL REVIEW OF THE TAXI POLICY, INCLUDING THE QUESTION OF SPECULATION OF TAXI LICENCES, THE SECRETARY FOR TRANSPORT, THE HON MICHAEL LEUNG, SAID TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY PROF THE HON POON CHUNG-KWONG, MR LEUNG SAID A RECENT SURVEY UNDERTAKEN ON BEHALF OF THE SUB-COMMITTEE HAD FOUND TENDER PRICE FOR LICENCES TO BE FOLLOWING THE MARKET PRICE.

+THE VALUE OF A TAXI LICENCE HAS FLUCTUATED IN THE PAST FEW YEARS: IT FELL FROM $237 000 IN 1978 TO $161 000 IN 1984 AND HAS RISEN RAPIDLY TO 3450 000 AT THE TIME OF THE LAST TENDER EXERCISE IN JANUARY THIS YEAR.

+ IN REAL TERMS, HOWEVER, ALLOWING FOR INFLATION, THE AVERAGE PREMIUM OF A TAXI LICENCE HAS ACTUALLY GONE DOWN BY AS MUCH AS 23 PER CENT OVER THE LAST 10 YEARS.+

MR LEUNG SAID IT WAS FOUND IN THE SURVEY THAT FACTORS CONTRIBUTING TO THE RISE IN THE VALUE OF A LICENCE INCLUDED THE PROFITABILITY OF TAXI OPERATION, WHICH HAD A DIRECT BEARING ON THE DEMAND FOR TAXI LICENCES GROWTH IN THE ECONOMY AND REAL INCOME WHICH RESULTED IN AN INCREASE IN THE DEMAND FOR TAXI LICENCES; AND THE SUPPLY OF NEW LICENCES.

ALTHOUGH THE SURVEY RESULTS DID NOT PROVIDE ANY DIRECT EVIDENCE THAT SPECULATION WAS A MAJOR FACTOR, THIS ELEMENT COULD NOT BE RULED OUT ENTIRELY WHEN FREE TRADING TOOK PLACE AND THE SUPPLY OF NEW LICENCES WAS LIMITED, HE ADDED.

+ THE TAC SUB-COMMITTEE IS EXAMINING ALL FEASIBLE IMPROVEMENTS TO THE CURRENT METHOD OF ISSUING TAXI LICENCES. APPROPRIATE RECOMMENDATIONS WILL BE MADE TO STRENGTHEN AND IMPROVE THE CURRENT SYSTEM NOW IN OPERATION, HE SAID.

HOWEVER, HE POINTED OUT THAT THE PRIMARY CONCERN WAS THE GENERAL QUALITY OF TAXI SERVICE TO THE PUBLIC AND THE EFFICIENCY OF THE OVERALL TRANSPORT SYSTEM IN SERVING THE COMMUNİTY.

+ IT IS IMPORTANT TO NOTE THAT BOTH THE QUALITY AND COST OF TAXI SERVICE IN HONG KONG ARE GENERALLY SATISFACTORY. EVEN SUPPOSING THERE IS SPECULATION IT IS NOT HAVING AN OBVIOUS EFFECT ON THE SERVICE OFFERED TO THE PUPLIC,+ HE ADDED.

/40