TNAG-1486-FCO40-2040-Public-finance-in-Hong-Kong-1986 — Page 65

APPENDIX B

Government Paper on the Director of Audit's Report on the accounts of the Hong Kong Government for the year ended 31 March 1985

This paper is laid before the Legislative Council by the Government following comments on certain policy issues in the Report under reference, as follows:

A. Paragraphs 97-106: The effectiveness of the Government's transport policy for reducing traffic congestion B. Paragraphs 107-123: Universities and Polytechnics student finance

C. Paragraphs 163-182: Defects in the funding arrangements of the Hong Kong Trade Development Council D. Paragraphs 184-192: Student travel scheme

A. THE EFFECTIVENESS OF THE GOVERNMENT'S TRANSPORT POLICY FOR REDUCING TRAFFIC

CONGESTION

(Paragraphs 97–106)

Policy

Policy on traffic congestion stems basically from the 1979 White Paper on Internal Transport Policy as modified from time to time by Executive Council decisions. The White Paper stated that 'the Government considers that the transport needs of Hong Kong can best be met by an integrated, multi-modal system in which public passenger transport is given greater priority on the roads over private passenger transport than at present and in which the provision and use of off-street public passenger modes are encouraged'. This remains the overall policy.

2 On traffic congestion, the White Paper stated that 'the Government believes that some restraint on road use by motor cycles and private cars will be unavoidable. The Government has no wish to impose restraints before they are necessary, but will watch closely how traffic flow is maintained against a background of increasing registrations on the one hand and the development of new roads on the other'.

3 On parking, the White Paper concluded that 'at locations threatened by unacceptable levels of road congestion, the supply of parking spaces and the charges for them are crucial in controlling road use by private cars' and pointed out that 'a Working Group has been formed to consider how best to reconcile the need for parking facilities with the need to avoid congestion on surrounding roads'. Having considered the report of the Working Group on Parking Policy, Executive Council decided on 13 October 1981, among other things, 'that the existing policy of restraining car use by a general restriction of provision of parking space should be abandoned'. However, it is relevant that in Legislative Council on 5 May 1982 the Secretary for Transport said that 'as much parking space as possible should be provided without generating more traffic than the local road network can carry without worsening congestion'. The continuing need for control is also clear from the parking standards laid down in the Hong Kong Planning Standards and Guidelines. The intention behind the decision was that, as a matter of principle, the Government should not generally refuse parking space applications when considering building applications, as a means of restraining the use of vehicles. It would be naive to assume that the Executive Council, in thus making clear its view on the use of parking restrictions as a general constraint of control of vehicle usage, was overlooking the real and growing problems of congestion in specific local areas.

4 On taxis, the White Paper stated that there must be some limit to the number of taxis allowed to operate in the urban area if mobility is to be maintained. Indeed, to limit the number of private cars would, in fact, add to road congestion if those denied the use of cars switched to an unlimited supply of taxis'. In July 1981 the Administration recommended that the current maximum of 10,000 urban taxis should be retained. However, Executive Council decided that 'urban taxi licences should continue to be issued at the rate of 100 per mensem and that the limit on the number of vehicles which may be registered as urban taxis should, subject to further consideration by the Attorney General as to the legal consequences, be increased to 12,000, and should extend for a period of 12 months if possible and, if not, for 6 months'. Subsequently, the number of taxis continued to be extended every six months, and tenders for 300 urban taxi licences were arranged every quarter.

5 Taxis were deliberately excluded from May 1982 fiscal measures to reduce the rate of growth of private vehicles. Introducing these into the Legislative Council in June 1982, the Secretary for Transport explained, 'In regard to taxis, I confirm that they are a necessary and useful adjunct to public transport, but there can be no assumption that they will always be treated as favourably as at present'.

6 In December 1982 the Administration on balance considered that the number of taxis be fixed at the current level (12,000 urban taxi licences). However, Executive Council, taking into account inter alia the high level of premia for taxi licences and public dissatisfaction with the quality of service of the taxi trade, decided that urban taxi licences should continue to be issued at the rate of 300 per quarter up to a maximun of 15,000 licences. Executive Council noted that the Secretary for Transport would consider whether the law should be changed to abolish the need for a maximum number of taxi licences, this ceiling being a possible contributory cause of speculation. The Council also noted that the Secretary for Transport would in due course make a submission arguing the case for taxis to be treated on the same basis as private vehicles as regards restraints on numbers. The Secretary therefore commissioned the 1983 Taxi Review.

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