XN000022-1995-09-20 — Page 12

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Taxi/PLB operators won't be worse off

A Government spokesman today (Wednesday) reiterated that existing taxi and public light bus (PLB) operators would not be worse off under the proposed diesel to petrol scheme which had fully taken into account their concern about cost increases.

He said: "In working out our proposals, the Government took great care to incorporate sufficient financial incentives to encourage an early switch to the cleaner alternative, to minimise the cost impact to both the operators and their passengers, and to ensure that those operators with diesel taxis and PLBs will not be any worse off financially than they are at present.

"Taxi and PLB operators will be able to enjoy a total exemption in first registration tax for the switch to cleaner petrol vehicles during the five-year conversion period.

"There will also be great discounts in the petrol duty, lowering to only 10 cents a litre in the first year of conversion compared with the existing duty of $5.25/litre and also in annual licence fees ranging from 100 per cent in the first year to 20 per cent in the fifth year.

"These concessions will keep the operating cost increases including maintenance costs related to the switch to a modest one per cent a year during the five- year conversion period and to two per cent in the subsequent five years. The increases will be absorbed in fare adjustments."

The spokesman also reiterated that early action was required to combat pollution from diesel vehicles primarily because of the increasing health risk posed by the high levels of emissions of Respirable Suspended Particulates (RSP) that caused various respiratory illnesses and probably contribute to cancer. Besides, RSP has an adverse effect on the environment and cleaning costs.

"We have considered carefully all other options including stringent emission standards, clean fuel and an inspection programme for light duty diesel vehicles. But none of these options by themselves would be able to bring the emission level down to the target we want to achieve.

"RSP concentrations in the congested urban area are now consistently higher than our target level. The problem is worsening because of the continuing increase in the usage of our congested road space by taxis and PLBs and other diesel vehicles."