XN000022-1992-02-19 — Page 15

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WEDNESDAY, FEBRUARY 19, 1992

WORKING GROUP ESTABLISHED TO REVIEW TAXI LICENSING SYSTEM

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A WORKING GROUP HAS RECENTLY BEEN ESTABLISHED UNDER THE TRANSPORT ADVISORY COMMITTEE TO CONDUCT A FRESH REVIEW ON TAXI POLICY INCLUDING THE PRESENT TAXI LICENSING SYSTEM. THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY THE HON J.D. MCGREGOR, MR LEUNG SAID ANY QUESTIONS OF SPECULATIVE ACTIVITIES AND ALLEGED MALPRACTICES WOULD ALSO BE EXAMINED TO SAFEGUARD PUBLIC INTEREST.

MR LEUNG EXPLAINED THAT THE GOVERNMENT'S POLICY TO ENSURE A SATISFACTORY LEVEL OF TAXI SERVICES RATHER THE DEMAND FOR TAXI LICENCES.

OBJECTIVE WAS THAN TO MEET

"WITH THE CONTINUED IMPROVEMENT OF AND EXPANSION IN RAIL AND BUS SERVICES, THE 1990 WHITE PAPER ON TRANSPORT POLICY REAFFIRMED THE NEED TO IMPOSE À QUOTA ON THE NUMBER OF NEW TAXI LICENCES, BALANCING THE INCREASING DEMAND FOR TAXI SERVICES AGAINST WHAT THE ROADS CAN BEAR IN TERMS OF MOBILITY.

ISSUE NO 100 NEW

"ACCORDINGLY, THE GOVERNOR IN COUNCIL HAS DECIDED TO MORE THAN 400 URBAN TAXI LICENCES EVERY TWO YEARS AND UP TO TERRITORIES TAXI LICENCES FROM 1991 TO 1992 SUBJECT TO REGULAR REVIEWS BY THE COUNCIL, HE SAID.

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TO DETERMINE THE ACTUAL NUMBER OF LICENCES TO BE ISSUED BACH YEAR, THE SECRETARY SAID THE TRANSPORT DEPARTMENT CONDUCTED ANNUAL ROADSIDE AND TAXI STAND SURVEYS ON THE ADEQUACY OF TAXI SERVICES AND TOOK INTO ACCOUNT THE FINANCIAL POSITION OF THE TAXI TRADE AND THE TRAFFIC MANAGEMENT IMPLICATIONS.

MR LEUNG EMPASISED THAT THE TAXI LICENCE PREMIUM WAS NOT TAKEN INTO ACCOUNT IN ASSESSING TAXI FARE INCREASE APPLICATIONS.

"ALTHOUGH A HIGH LEVEL OF PREMIUM MAY INDIRECTLY EXERT PRESSURE ON FARES IN THE FORM OF HIGHER RENTAL CHARGED BY THE TAXI OWNERS, THERE IS A LIMIT TO THE LEVEL OF RENTAL THAT TAXI DRIVERS PREPARED TO PAY IN RELATION TO THE EXPECTED PROFITABILITY OF OPERATION," HE SAID.

ARE

TAXI

то

OF

MR LEUNG SAID TAXI FARE INCREASE APPLICATIONS WERE SUBJECT THE SCRUTINY OF THE TRANSPORT ADVISORY COMMITTER AND THE APPROVAL THE GOVERNOR IN COUNCIL ΤΟ ENSURE THAT ANY REVISIONS WOULD BE ACCEPTABLE TO THE PUBLIC.

"THE RELATIONSHIP, IF ANY, BETWEEN TAXI LICENCE PREMIUM AND INFLATION IS NOT STRAIGHT FORWARD.

"TAXI FARES, RATHER THAN THE TAXI LICENCE PREMIUM, IS COVERED BY THE CONSUMER PRICE INDEX (CPI). SPENDING ON TAXI SERVICES IS ONLY A SMALL PERCENTAGE (0.8 PER CENT) OF THE AVERAGE EXPENDITURE OF HOUSEHOLDS COVERED BY THE CPI(A), HE SAID.

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