XN000022-1996-07-03 — Page 56

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34

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Reply:

(a)

(b)

Mr President,

when the Western Harbour Crossing becomes operational, the toll will still be set at $30 per trip as previously determined; and

the Government will consider adjusting the tolls for the Eastern Harbour Crossing and the Cross Harbour Tunnel before the Western Harbour Crossing comes into operation, so as to narrow the difference in the tolls charged by the three tunnels?"

The toll levels for the Western Harbour Crossing are provided for in Schedule 1 to the Western Harbour Crossing Ordinance. Section 36 of the Ordinance states that the Western Harbour Tunnel Company shall not charge tolls greater than those specified in Schedule 1, which are based on 1997 prices. The level for private cars specified therein is $30. The specified toll levels will enable the franchisee to service its debts and earn a reasonable return over his investment, taking into account the project cost, market risks and the anticipated traffic volume, for which a detailed study has been conducted.

In line with existing policy, an application for toll increase from the franchisees of the Eastern Harbour Crossing and the Cross Harbour Tunnel will be considered on the basis of its own merits under the terms of their respective franchises.

We appreciate that the toll differential between the Western Harbour Crossing and the two other cross-harbour tunnels might affect usage. We will monitor the traffic volume and pattern of utilisation of the three tunnels after the commencement of operation of the Western Harbour Crossing.

End