XN000022-1994-11-09 — Page 2

WEDNESDAY, NOVEMBER 9, 1994

- 1

THE

PROPOSALS TO TACKLE TRAFFIC CONGESTION ANNOUNCED

GOVERNMENT

* *

TO PROPOSES

THE TACKLE

WORSENING TRAFFIC CONGESTION WITH A THREE-PRONGED APPROACH' THAT WOULD COVER MEASURES FOR IMPLEMENTATION IN THE SHORT, MEDIUM AND LONG TERMS.

THE SECRETARY FOR TRANSPORT, MR HAIDER BARMA, TODAY (WEDNESDAY) END OF ANNOUNCED THESE PROPOSALS FOR PUBLIC CONSULTATION UNTIL THE JANUARY.

USED

IN THE SHORT TERM, IT IS PROPOSED THAT FISCAL MEASURES BE TO CONTAIN PRIVATE CAR GROWTH WHICH INCREASED BY ONE-THIRD IN THE PAST THREE YEARS AND IS INCREASING AT 10 PER CENT A YEAR. DURING THE PERIOD, GOODS VEHICLES ONLY INCREASED BY ONE PER CENT.

SAME

AN

MR BARMA SAID: "OUR EXPERIENCE SHOWED THAT TAX INCREASE IS

1982 TAX INCREASE EFFECTIVE MEANS OF CONTROLLING CAR NUMBERS. THE

WE DID SUCCEEDED IN REDUCING THE SIZE OF PRIVATE CARS BY 28 PER CENT. NOT RETURN TO THE 1982 LEVEL UNTIL EIGHT YEARS LATER."

(ALF) FOR FOR INFLATION INCREASE FIRST THE REGISTRATION TAX (FRT) FROM THE PRESENT RANGE OF 40 PER CENT TO 60 PER TYPES OF PRIVATE CENT OF THE TAXABLE VALUE TO 70 PER CENT FOR ALL VEHICLES.

THE PROPOSALS ARE TO INCREASE ANNUAL LICENCE FEES PRIVATE CARS BY AN AVERAGE OF 40 PER CENT TO ACCOUNT

1991 AND ΤΟ MARCH SINCE

LAST INCREASE IN

THE TAX PROPOSALS WOULD INCREASE YEAR AND NEW CAR PRICES BY $25,000 TO

ALF BY $1,500 TO $4,500 A $55,000.

REDUCE

PRIVATE CAR

IT IS ESTIMATED THE TAX MEASURES WOULD GROWTH TO ABOUT THREE PER CENT IN THE FIRST FULL YEAR.

FRT INCREASE IS LOADED TOWARDS MR BARMA SAID: "THE PROPOSED

SOLD THE LOWER END OF THE MARKET BECAUSE 78 PER CENT OF THE NEW CARS ARE WITHIN THE LOWER TAX BANDS.

"THE INCREASES ARE NECESSARY FOR TRAFFIC MANAGEMENT REASONS AND NOT TO GENERATE EXTRA REVENUE PER SE.

PRINCIPLE THAT

CAN

FOR

"THE SECRETARY FOR THE TREASURY HAS AGREED IN THE SUM OVER AND ABOVE WHAT WOULD BE COLLECTED FROM FRT INCREASES BE CHANNELLED INTO A SPECIAL FUND WHICH WILL BE USED EXCLUSIVELY

TRANSPORT INTERCHANGE TRANSPORT PURPOSES SUCH AS PROVIDING BETTER FACILITIES AND ADVANCING THE BUILDING OF RAILWAYS.

SYSTEM.

THE

THE GOVERNMENT IS ALSO COMMITTED TO IMPROVING

EXPENDITURE THIS WILL INCLUDE A HIGH LEVEL OF INFRASTRUCTURE; AN INCREASE IN THE CARRYING CAPACITY OF MASS AND MORE EFFECTIVE RAILWAY AND KOWLOON-CANTON RAILWAY; MANAGEMENT MEASURES THAT WOULD IMPROVE TRAFFIC FLOW AND PRIORITY TO PUBLIC TRANSPORT.

TRANSPORT ON ROAD TRANSIT TRAFFIC

GIVE HIGHER

FURTHER UPGRADING. THE MEASURES WILL INCLUDE MORE BUS LANES,

CONTROL SYSTEMS AT ROAD JUNCTIONS, TRAFFIC OF COMPUTERISED

THE HIGHWAYS CAMERAS ON

AND MORE INSTALLATION OF SURVEILLANCE VIGOROUS ENFORCEMENT ACTION BY THE POLICE.

/TO TACKLE.