XN000022-1992-05-27 — Page 6

FARE POLICY

WEDNESDAY, MAY 27, 1992

TURNING TO TAXI FARE POLICY, OUR TAXI FARES, ON AVERAGE $4.5 PER KILOMETER FOR URBAN TAXIS, COMPARES FAVOURABLY WITH MANY OTHER MAJOR INTERNATIONAL CITIES. HOWEVER, A BALANCE MUST BE MAINTAINED BETWEEN THE USE OF TAXIS AND MASS CARRIERS IN OUR CROWDED CITY. AS TAXI DEMAND IS GENERALLY PRICE ELASTIC, THE 1988 REVIEW RECOMMENDED A DIFFERENTIAL

FARES OF MASS CARRIERS TO REGULATE TAXI DEMAND. THIS POLICY WAS REAFFIRMED IN THE 1990 WHITE PAPER ON TRANSPORT POLICY. WE SUBSEQUENTLY AIM AT MAINTAINING A DIFFERENTIAL, ON A PASSENGER BASIS, OF 5 TO 7 TIMES FOR URBAN TAXIS AND 3 TO 4 TIMES NT TAXIS. THIS HAS HELPED TO MAINTAIN THE ROLE OF TAXIS AS A FORM OF PERSONALIZED TRANSPORT.

WITH

PER

FOR

SOME ARE HOWEVER CONCERNED THAT THIS FARE DIFFERENTIAL WILL ADD TO INFLATION. WE MUST REALISE THAT SPENDING ON TAXI SERVICES REPRESENTS ONLY 0.8% OF THE AVERAGE EXPENDITURE OF HOUSEHOLDS COVERED BY THE CONSUMER PRICE INDEX (A). THERE IS LITTLE EVIDENCE THAT SUCH FARE DIFFERENTIAL PUTS PRESSURE ON INFLATION.

SOME HAVE PROPOSED TO CHANGE THE METER CHARGE STRUCTURE ΤΟ REGULATE THE USE OF TAXIS FOR SHORT JOURNEYS AND TO REDUCE REFUSALS OF HIRE. HOWEVER, THERE IS NO CONSENSUS ON THE PART OF THE TAXI TRADE OR THE PUBLIC ON THESE PROPOSALS. THE PROS AND CONS WILL BE CRITICALLY EXAMINED IN OUR REVIEW.

ANY APPLICATION FOR TAXI FARE INCREASES IS OF COURSE ALWAYS CAREFULLY ASSESSED ON GROUNDS OF COSTS, VIABILITY OF THE TRADE, ADEQUACY OF TAXI SERVICES AND PUBLIC ACCEPTABILITY. THE TAXI ASSOCIATIONS AND TAC ARE CONSULTED BEFORE ANY DECISION IS TAKEN. THIS IS TO ENSURE THAT THE FARE NOT ONLY REFLECTS OUR TAXI POLICY, BUT ALSO THE INTERESTS OF OPERATORS, DRIVERS AND PASSENGERS.

AMALGAMATION OF URBAN AND NT TAXIS

THERE THE

WITH THE CONTINUED URBANISATION OF THE NEW TERRITORIES, HAVE BEEN REQUESTS FOR THE AMALGAMATION OF URBAN AND NT TAXIS. ADMINISTRATION HAS YET NO PLANS TO CHANGE THE EXISTING CLASSIFICATION OF TAXIS. THERE ARE STILL RESIDENTS LIVING IN REMOTE AREAS NOT WELL SERVED BY OTHER FORMS OF PUBLIC TRANSPORT. ΤΟ REMOVE THE CURRENT DEMARCATION MAY RESULT IN NT TAXIS OPERATING ONLY IN THE URBAN AREAS. THIS WILL DEPRIVE THE NT RESIDENTS OF THE NEEDED TRANSPORT SERVICE.

HOWEVER, WE WILL COMMISSION A GENERAL CONSULTANCY STUDY LATER THIS YEAR TO EXAMINE THE PUBLIC TRANSPORT NEEDS ARISING FROM THE NEW AIRPORT. THE FUTURE ROLE AND CLASSIFICATION OF TAXIS

WILL, AMONGST OTHER THINGS, BE PART OF THIS REVIEW.

THE WORKING GROUP ON TAXI POLICY REVIEW WILL FORWARD ITS FINDINGS TO THE TAC THIS SUMMER. THE PUBLIC VIEWS RECEIVED SO FAR ARE RATHER DIVERGENT AND SOMETIMES REPRESENT COMPETING OR INTERESTS. ALL VIEWS WILL BE TAKEN FULLY INTO ACCOUNT. WILL BE CONSULTED AGAIN BEFORE ANY RECOMMENDATIONS ARE THANK YOU.

CONFLICTING THE PUBLIC

FINALIZED.

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