TNAG-1509-FCO40-2067-Hong-Kong-roads-and-traffic-legislation-1986 — Page 6

The amending Regulations, if approved, would be brought into force by notice in the Gazette as soon as possible.

Financial implications

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The proposed increase in taxi fares has no financial or staffing implications.

Consultation

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The Transport Advisory

Advisory Committee supports the fare scale recommended for New

New Territories and Lantau taxis and the proposed 50% surcharge for Lantau taxis

taxis on Sundays/Public Holidays.

Secretary for Administrative Services & Information's overall assessment on public reactions

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The financial difficulties of both the New Territories and Lantau taxi operators have gained wide media coverage in recent months and there is some public sympathy for their plight. There have also

have also been some press speculation and a leak about the TAC's recommendation. The public seems generally prepared for a fare increase.

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Criticism of the fare increase is likely to come from Lantau residents who are already affected by the HYF ferry fares increases and are aware of the proposal to raise bus fares on Lantau. The District Officer (Island) has also advised that the surcharge for Lantau taxis will have a damaging effect on the tourist potential of Lantau Island and that it would arouse local criticisms.

Publicity

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A press release will be issued to stress that :-

on a careful

(a) the fare increase is based

(b)

study of the overall operating economics of the New Territories and Lantau taxi trades;

the fare

fare increase is intended to enable taxi operators to make a reasonable return on their operations by offsetting the loss caused by higher operating costs and the reduction in utilization rate of taxis;