XN000022-1995-11-02 — Page 61

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Traffic Congestion and Public Transport Services

I now turn to congestion on our roads and the importance of public transport

services.

I have often said, and make no apologies for repeating yet again, that we simply cannot build our way out of congestion. Our fundamental policy is clear-cut: to manage road use and improve the availability and quality of public transport. The public consultation exercise and debate in this Council earlier this year on measures to address traffic congestion demonstrated strong support for the adoption of the user- pays principle through the implementation of an Electronic Road Pricing System. Transport Department is now drawing up and finalising a study brief. We expect to invite tenders for a consultancy by the middle of next year. This will be followed by a pilot scheme before full implementation. We shall brief and consult this Council and District Boards as the exercise progresses.

Although fiscal measures to alleviate congestion did not find favour with many Hon Members, past experience has proven that such measures do have an immediate impact. The substantial growth in the number of private cars up to the early part of this year was particularly worrying. Although the market has self-adjusted for now, the stark reality is that our road systems, even with the substantial investment in infrastructural projects which are planned, cannot cope with an annual growth of more than 2 to 3%. That is why, unpopular though it may be, the Administration has to be ready to take action should circumstances so warrant. We are now drafting legislation to provide the Administration with the requisite powers to increase Annual Licence Fees and impose passenger taxes at the tunnels and expect to submit bills to this Council for consideration early in the New Year. If and when the Administration believes that such fiscal constraints actually need to be imposed, Hon Members will of course be consulted and have the opportunity to examine and vet the proposals in detail.

It is no fluke that in Hong Kong we have one of the best public transport systems in the world. We have a wide range of transport modes at affordable prices. We have a successful formula: the key factors are that public transport is provided by operators who run their business on commercial principles, there is no government subsidy and we have an effective regulatory framework.