TNAG-1301-FCO40-1657-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 111

LABOUR DISPUTES

ESSENTIAL FACTS

CONFIDENTIAL

The Taxi Dispute

1. On 3 January, Executive Council, as part of policy to restrict numbers of taxis in Hong Kong, approved proposal to increase

significantly first registration tax and annual license fees for

taxis. Second reading of Bill to implement these measures was moved in Legislative Council on 11 January. Taxi drivers reacted unfavourably. Large numbers went on strike and used vehicles to

disrupt traffic, causing severe congestion in some districts.

2.

During evening of 13 January, some 2,000 taxis were blocking major roads in Kowloon. Large crowd of about 10,000 gathered to join drivers in shouting disapproval. About 1,000 youths took

advantage of tense situation to loot and cause severe damage to

shops and parked vehicles.Police were obliged to use three smoke grenades to disperse mob. Situation became calm again by about 3.00

Thirty two people, including 4 policemen, received minor injuries.172 were arrested. Damage estimated at about HK$4 million

(£360,000), excluding damage to 27 vehicles.

am.

3.

Early on 14 January, Unofficial members of Legislative Council announced they would vote against Bill on 18 January. Taxi drivers dispersed blockades and returned to work. On 18 January, all

Unofficials duly voted against Bill. Officials abstained and Bill was consequently defeated. New policy proposals will be considered

by Executive Council.

Implications

4. Hong Kong Government has publicly attributed Bill's defeat to working of democratic process in Hong Kong. However it has come under criticism for lack of consultation before introducing proposals. Also danger that it will be considered to have backed down in face of concerted disruptive opposition. This may encourage others to mount similar campaigns against eg proposed rises in utility charges or bus fares.

CONFIDENTIAL