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The Transport Advisory Committee (TAC) discussed today (Nov 8) Star Ferry's application for a franchise extension and applications by the taxi trade for introducing a fuel surcharge.
On Star Ferry's application for a franchise extension, TAC members were satisfied that Star Ferry had been providing proper and efficient ferry service and noted that the company had agreed to additional commitments to further improve its service standards if granted a new franchise.
"We understand that having considered TAC's views, the Government will submit its proposal to the Chief Executive in Council for a final decision," said TAC Chairman Ms Teresa Cheng.
Regarding applications for a fuel surcharge by the taxi trade, Ms Cheng said the TAC was aware of the impact of fuel price increases on the trade and its argument for the surcharge in light of difficult operating conditions. But she emphasised the TAC's view that it would be more appropriate for the trade to apply for fare adjustments instead of a fuel surcharge.
"The fare adjustment mechanism has the benefit of taking into account not only the fuel price increase but also revenue and other cost components of the trade, such as changes in repairs and maintenance costs. It is a far more comprehensive model for evaluating the taxi trade's conditions," Ms Cheng said.
"In addition, the mechanism can balance public interest and avoid the passing of fuel cost changes onto passengers directly each time the price fluctuates. "
Ms Cheng also pointed out that introducing a fuel surcharge by taxis might trigger a knock-on effect on other modes of public transport, such as buses, minibuses and ferries, with a host of negative implications.
"We hope the taxi trade could consider prudently to apply for fare increases within the existing adjustment mechanism. We understand that the Government will process such applications as quickly as possible."
Under the current public consultation on taxi service review, some members of the taxi trade and the public have expressed their views. Ms Cheng said that the ultimate aim of the review was to enhance the competitiveness of taxi services. She said she hoped that the taxi trade would take the opportunity to consider whether and how the existing fare structure should be changed.
Ends/Thursday, November 8, 2007
Issued at HKT 13:55
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