XN000022-1990-04-10 — Page 9

TUESDAY, APRIL 10, 1990

TAC DISCUSSES URBAN TAXI FARE INCREASE

THE TRANSPORT ADVISORY COMMITTEE (TAC) TODAY (TUESDAY) CONSIDERED AN APPLICATION FOR AN INCREASE IN URBAN TAXI FARES.

BY THE TRADE IN PER CENT BUT

MEMBERS DID NOT ACCEPT THE PACKAGE PROPOSED THE INCREASE IN URBAN TAXI FARE BY 24 PER CENT TO 55 RECOMMENDED A LOWER RATE OF INCREASE.

HOWEVER, HAS TO THE

THE INCREASE IN OPERATING AND MAINTENANCE COSTS, BEEN FULLY TAKEN INTO CONSIDERATION IN TAC'S RECOMMENDATIONS EXECUTIVE COUNCIL.

NOTED THAT A SURVEY

IN ASSESSING THE APPLICATION, THE TAC CONDUCTED BY THE TRANSPORT DEPARTMENT IN FEBRUARY THIS YEAR ON THE FINANCIAL POSITION OF URBAN TAXIS SHOWED THAT THE MONTHLY PROFIT OF URBAN TAXI OPERATORS HAD DROPPED MAINLY AS A RESULT OF THE INCREASED OPERATING COSTS, INCLUDING THE LATEST REVISED DIESEL TAX AND PRICE.

THE RECOMMENDED GENERAL FARE INCREASE WILL ALSO YIELD AN INCREASE IN MONTHLY DRIVER INCOME то OFFSET THE INCREASED DIESEL PRICE.

THE SURVEY RESULTS ALSO INDICATE THAT THE DEMAND FOR URBAN TAXIS IS STILL HIGH. TO MAINTAIN A SATISFACTORY LEVEL OF SERVICE, IT IS IMPORTANT TO STRIKE A BALANCE BETWEEN THE EVER INCREASING DEMAND FOR TAXIS AND THE TRAFFIC VOLUME THAT THE ROADS CAN BEAR.

THE TAC ALSO RECOMMENDED A MODERATE INCREASE IN RADIO-CALL AND LUGGAGE FEES, NOTING THAT THESE CHARGES HAVE NOT BEEN REVISED SINCE MARCH 1987.

THE PROPOSED FARE RISE WILL HELP TO WIDEN THE FARE DIFFERENTIAL BETWEEN URBAN TAXIS AND THE MASS CARRIERS WHICH IS IN LINE WITH GOVERNMENT'S POLICY TO ESTABLISH A REASONABLE FARE DIFFERENTIAL AS A MEANS TO REGULATE THE GROWTH IN TAXI DEMAND.

THE RECOMMENDATION WILL BE FORWARDED TO THE EXECUTIVE COUNCIL FOR CONSIDERATION.

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