XN000022-1995-12-27 — Page 2

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Three bills to address traffic congestion

The Governor-in-Council has given approval for three bills to be introduced into the Legislative Council to empower the administration to implement fiscal measures to address traffic congestion when the need arises.

The bills - the Road Traffic (Amendment)(No 3) Bill 1995, the Eastern Harbour Crossing Road Tunnel (Passage Tax) Bill and the Inland Revenue (Amendment)(No 4) Bill 1995 will be published in the Government Gazette on Friday (December 29).

A government spokesman said today (Wednesday) that the bills were part of a number of measures to address traffic congestion endorsed by the Governor-in- Council at its meeting on July 25, 1995.

The Road Traffic Ordinance (Amendment) (No 3) Bill 1995 will empower the administration to raise the Annual Licence Fees (ALF) of vehicles for reasons other than cost recovery.

The spokesman said the administration did not intend to raise ALF or the First Registration Tax for the time being as there had been a significant decline in new car registrations recently.

"However, we require the power to increase ALF as a measure to deter car ownership should this prove necessary in future," the spokesman said.

"Actual implementation would be subject to the approval of the Legislative Council by resolution," he added.

The Eastern Harbour Crossing Road Tunnel (Passage Tax) Bill will enable a tax to be imposed on vehicles using the Eastern Harbour Crossing Road Tunnel.

The spokesman said the cross harbour tunnels were operating at full capacity and there could be no relief until the Western Harbour Crossing opened in 1997.

"In recognition of this, the Governor-in-Council has decided that enabling legislation should be drafted to permit the imposition of and increase in passage tax at cross harbour tunnels.