XN000022-1997-02-25 — Page 4

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ExCo approves taxi fare increases

The Governor in Council today (Tuesday) approved fare increases of 6.3 per cent and 7.4 per cent respectively for urban and New Territories taxis to take effect on April 13, 1997. The revised fares will be tabled in the Legislative Council on March

5.

Under the new fare structures, flagfall charges for the first two kilometres will be increased from $14.00 to $14.50 for urban taxis, and from $11.80 to $12.50 for New Territories taxis.

For every subsequent 0.2 kilometre, the fares for both urban and New Territories taxis will go up by 10 cents to $1.30 and $1.20 respectively.

The waiting time charge will rise by 10 cents per minute to $1.30 for urban taxis and $1.20 for New Territories taxis.

A Government spokesman said that in considering the fare increase applications, the Executive Council had taken into account such factors as the financial position of taxi trade, the quality of taxi service, the fare differential between taxis and other modes of public transport, and public acceptability.

He pointed out that the approved rates of increase for urban taxis was below forecast inflation and that for NT taxis was in line with inflation.

"An annual moderate increase would help the taxi trade maintain a healthy financial position," the spokesman said. "Most taxi operators are small operators with narrow profit margins, and freezing the fares may affect their livelihood."

Commenting on the recent rise in taxi licence premiums, the spokesman said, "There is no direct connection between taxi fares and taxi licence premiums."

The Executive Council also agreed that the current level of $5.00 for telephone booking surcharge and baggage surcharge for urban taxis and $4.00 for NT taxis should remain unchanged for the time being.

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