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We encourage private sector participation by allowing transport operators to obtain a fair and reasonable return on their investment. This is a pre-requisite if operators are to re-invest in service improvements to meet public demand for higher public demand for comfort and reliability. They in turn depend on fare increases to meet increasing costs. Indeed, the inevitable cycle of submissions for fare adjustments from transport operators has commenced. Such submissions will be scrutinised by the Administration before Members are consulted.

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A number of Honourable Members have expressed concern about ferry services and the importance of ferries as an alternative transport mode. In the past two years, there have been significant improvements in services to the NWNT. For example, three new high speed catamarans have been deployed on the Tuen Mun route to cater for the morning rush. Two new routes have also been introduced one from Tuen Mun to Wan Chai and one from Gold Coast to Central. Special feeder buses and green mini-buses have been provided to connect ferry piers with residential areas and these services will be strengthened. In the next 12 months, peak hour capacity between Tuen Mun and Central will be increased by 10% through the provision of one more catamaran. Some Members have suggested a shuttle service, at least during rush hours, between Tuen Mun and Tsuen Wan. This will be explored. But it must be recognised that ferry services can only be viable if there is adequate patronage.

Mr President, the Administration will continue to review its policy on ferry services and take steps to encourage investment. For example, we are finalising the detailed terms of a pier development package with the Hong Kong and Yaumati Ferry which would enable the ferry company to implement service improvements to the NWNT and the outlying islands with fares kept at reasonable and affordable levels.

On taxis, the Transport Advisory Committee completed a comprehensive review in early 1994. Many measures to combat malpractices have been implemented. These include stiffer penalties and the display of I.D. cards by taxi drivers. I believe that this Council is also aware that we have introduced cross-harbour taxi stands on a trial basis for the greater convenience of both passengers and taxi operators. Separately, the Transport Advisory Committee has just embarked on a full review of public light bus policies to see how these services can be improved. My colleague, the Secretary for Planning, Environment and Lands has referred to proposals to require taxis and public light buses to switch from diesel to petrol. The views of the trade will be fully taken into account as part of the public consultation exercise now in hand.