July 23, 2007

Fare-cuts call for taxis hits skids


vISIT tHE tAXI-mART sHOP

A lawmaker's renewed push for cuts in taxi fares to deal with illicit discount cabbies has been met with strong opposition from part of the taxi trade.

Speaking on RTHK's City Forum yesterday, Democrat Andrew Cheng Kar-foo, who chairs the Legislative Council's transport panel, said lowering fares for long-distance journeys may level the market share - up to 90 percent of which is now dominated by discounted cabs - among the territory's 18,000 taxi drivers and help their business.

"I believe this could solve the issue of vicious competition between legitimate cab drivers and those offering discounts to passengers," said Cheng, again urging the government to review whether price negotiations by any party should be allowed under the law.

His proposal involves lowering the meter fare jump to HK$1 per 200 meters or a minute's waiting period - instead of the current HK$1.40 - after the meter passes HK$50.

The suggestions are similar to those made by Hong Kong Public Light Bus Owners' and Drivers' Association president Lai Ming-hung. Lai's proposal included raising the initial meter fare from HK$15 to HK$17, while the proposed reduction in the meter fare jump is the same as Cheng's.

However, plans for a fare reduction were opposed by representatives of call- cab drivers and taxi owners.

"There's simply no room for a price reduction," Kowloon Taxi Owners' Association chairman Yum Tai-ping said. He cited rising operating costs, including higher gasoline prices and the price tag of a taxi vehicle itself - a near 20 percent rise of up to HK$230,000 over the past few years - for the difficulty in making further price adjustments.

Strong opposition also came from Hong Kong Kowloon Taxi and Lorry Owners' Association vice chairman Wong Po-keung, who said he was against any price reduction plans that would lower their income.

"If our income is affected, [by adjustments] taxi drivers would just switch to driving buses that offer a higher pay," he said.

Transport Department Assistant Commissioner Don Ho Yue-man admitted lowering taxi fares is a complicated issue and should be dealt with carefully, as it could affect a driver's daily business and ultimately taxi rents.

He said the Transport Advisory Committee will continue its comprehensive review, which is due to be completed by April next year, and the public will be consulted on the matter before the end of the year.

The controversy over illicit discount call-cabs drew citywide attention after 300 taxi drivers staged a seven-hour blockade at the airport two Saturdays ago protesting new designated pickup and drop-off points.

Urban Taxi Drivers' Association chairman Kwok Chi-piu, who represents call-cab drivers and organizers of the blockade, said the police should be blamed for the airport chaos.

"The police had done nothing in the past three years to stop illegal operators of local and cross-border light goods vans, which are the ultimate enemy of all taxi drivers," he said.

Meanwhile, traffic at the airport was smooth after the temporary pickup area at car park No4 ceased to operate at noon yesterday.

A spokeswoman for the Airport Authority said it had deployed 100 staff members to help travelers get to the call- cab and light goods vans drop-off and pickup zone at car park No3.

The authority, together with the police and the Transport Department, had activated the airport emergency center to ensure smooth traffic arrangements.

http://www.thestandard.com.hk/news_detail.asp?pp_cat=11&art_id=49549&sid=14597039&con_type=1

 

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