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The following is issued on behalf of the Transport Advisory Committee:

The Transport Advisory Committee (TAC) announced today (Tuesday) the completion of its review of taxi licensing system.

Speaking after the meeting, the TAC Chairman, Dr Cheng Hon-kwan, said that "the review concludes that there is no direct relationship between movements in taxi licence premiums and changes in taxi fares and rentals, and that high taxi licence premiums do not have any direct impact on the quality of taxi services."

"Some people have alleged that high taxi licence premiums would lead to increases in taxi fares and deterioration in the quality of services," said Dr Cheng. "The finding of the Working Group has shown that this is not valid. It is hence not appropriate for Government to intervene in the level of taxi licence premiums which is subject mainly to the overall investment climate."

In response to public concern about a sharp increase in taxi licence premiums in 1996 and early 1997, the TAC set up a working group in March 1997 to review the taxi licensing system. In conducting the review, the Working Group consulted widely including the taxi trade and launched a public consultation from August to September 1997. The views received were divided on the need for changing the taxi licensing system but there was a strong desire for improving the quality of services.

Dr Cheng further pointed out that "the Working Group re-affirms the conclusion reached in the last TAC Taxi Policy Review that there could not be unlimited issue of taxi licences and that new taxi licences should continue to be issued in accordance with demand and supply."

Taking into account the latest economic situation and the difficulties faced by the taxi trade, the TAC Working Group considered that rather than relying on sanctions to ensure service quality, it would equally be important to introduce incentives to help taxi operators improve their standards and services. These include -

¡¯ to revise the basic requirements for obtaining a taxi

driving licence;

¡¯ to introduce a Taxi Driver Award Scheme;

¡¯ to require all taxi drivers to switch off the light on

the roof of the taxis whenever they are not available

for hire;

¡¯ to continue to relax individual restricted zones for

taxis to set down and pick up passengers wherever

traffic conditions allow; and

¡¯ to conduct a passenger survey on taxi services.

The TAC Working Group has reviewed the existing measures against misconduct of taxi drivers and taxi malpractices. In order to safeguard the safety and interest of passengers, it is proposed that taxi drivers who have been convicted of serious offences (e.g. personal injury and indecent assault) should be banned from driving taxis, or applying for a taxi driving licence, for a certain period of time.

On the other hand, the Working Group re-visited an earlier proposal to bring "refusing hire" and "soliciting passengers" under the fixed penalty system. Having regard to the views of the taxi trade and the effectiveness of Police enforcement operation against such malpractices in recent years, the Working Group did not consider it necessary to pursue it.

"We fully appreciate the difficulties faced by taxi operators under the current economic situation, and hope that these measures could help the taxi industry," said Dr Cheng. "Government will consult the taxi trade before finalising the implementation plans on these measures. In addition, Government will conduct further studies, in consultation with the trade, into a number of issues which could help ensure the provision of better taxi services in the longer term."

End/Tuesday, July 28, 1998

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