XN000022-1994-07-22 — Page 12

FRIDAY, JULY 22, 1994

10

THE OBJECTIVE OF PROMOTING OFF-ROAD DRIVER TRAINING CAN HARDLY BE ACHIEVED IF THE INCENTIVE GRANTED TO STUDENTS OF OFF-ROAD DRIVING SCHOOLS IN THE FORM OF REDUCED WAITING TIME IS ABOLISHED.

* THERE IS ALREADY A REASONABLY LEVEL-PLAYING FIELD FOR PRIVATE INSTRUCTORS AND DRIVING SCHOOLS.

PRIVATE INSTRUCTORS HAVE BEEN ENJOYING A HIDDEN SUBSIDY BY USING PUBLIC ROADS FREE OF CHARGE WHILE THE GRANTING OF PREFERENTIAL TREATMENT IN TERMS OF REDUCED WAITING TIME APPLIES NOT ONLY ΤΟ THE STUDENTS OF HONG KONG SCHOOL OF MOTORING (HKSM) BUT ALSO ΤΟ STUDENTS OF ANY DRIVING SCHOOLS.

AS THERE IS NO INTENTION TO ALLOW HKSM TO MONOPOLISE THE OFF- ROAD DRIVER TRAINING MARKET, THE GOVERNMENT WILL CONTINUE TO ENCOURAGE THE PRIVATE SECTOR TO SET UP NEW OFF-ROAD DRIVING SCHOOLS.

THE RESULTS SO FAR HAVE NOT BEEN VERY SUCCESSFUL AND THIS IS PRIMARILY BECAUSE OF A VARIETY OF FACTORS INCLUDING THE SCARCITY OF

A LAND

FOR IN HONG KONG, THE RELATIVELY HIGH SET-UP COST

DRIVING SCHOOL, STRONG OBJECTIONS FROM THE LOCAL COMMUNITIES, PARTICULARLY THE DISTRICT BOARDS.

ONE SUCH EXAMPLE IS THE PROPOSED ESTABLISHMENT OF AN ARTICULATED VEHICLE DRIVING SCHOOL AT TSEUNG KWAN 0.

* REGARDING CONSUMER PROTECTION, THE GOVERNMENT IS AWARE THAT LEARNER DRIVERS DO HAVE A FREE CHOICE BETWEEN LEARNING AT THREE OFF- ROAD DRIVING SCHOOLS AND FROM PRIVATE DRIVING INSTRUCTORS.

THEY OFFER DIFFERENT PACKAGES IN TERMS OF PRICING, SERVICE, CONVENIENCE, AND COURSE STRUCTURE. THERE IS NO QUESTION OF UNFAIRNESS TO THE CONSUMERS.

NEITHER IS THERE A NEED TO ENCOURAGE MORE COMPETITION.

THIS IS BECAUSE THE DRIVING SCHOOL AND PRIVATE INSTRUCTORS TWO DIFFERENT MODES OF SERVICE, WITH DIFFERENT FORMS OF INCENTIVES AVAILABLE.

OFFER

THE INCENTIVE TO DRIVING SCHOOL IS THE RELATIVELY SHORTER WAITING TIME; THE INCENTIVE TO THE PRIVATE INSTRUCTORS IS THE FREE USE OF PUBLIC ROADS FOR DRIVING INSTRUCTION.

OF

* THE GOVERNMENT WILL STUDY THE POLICY RECOMMENDATIONS PROPOSED IN THE REPORT IN DETAIL, TAKING INTO CONSIDERATION TRANSPORT POLICY, THE TRAFFIC MANAGEMENT NEEDS OF THE LOCALITY, THE SCARCITY SUITABLE LAND RESOURCES FOR DRIVING TRAINING PURPOSES, AND PUBLIC COMMENTS.

0

/11