The Transport Advisory Committee (TAC) yesterday rejected a fuel surcharge request by the taxi industry but said the sector could apply for a fare raise.

The industry expressed disappointment over the TAC's decision but said it will apply for fare increases and hope the application will be approved within three months.

The TAC yesterday met over the industry's request to collect a fuel surcharge of HK$1 per trip to offset falling income owing to soaring fuel prices.

After the meeting, TAC chairwoman Teresa Cheng said the committee was not in favour of imposing a fuel surcharge, but would consider an application for fare increase if the industry chose to file one.

If a fuel surcharge is collected and keeps rising, the passengers will be confused as they may not know the latest surcharge amount, she explained.

"A lot of disputes may surface," she told a press conference. "But if the full fare is displayed on the meters, there would be no argument between passengers and drivers."

And since it takes as long to apply for fuel surcharge as for fare increases, she said, it would not make much difference to the taxi trade.

Cheng further said the proposed fuel surcharge could cause a side effect - prompting other means of public transport such as buses, minibuses and ferries to follow suit.

In response to the TAC's decision, representatives of the taxi industry said it was unfair to disallow the fuel surcharge but they somehow accepted the decision.

After meeting with industry representatives, they will submit their application and hope the government will approve their application within three months.

The industry had sought to have the starting meter charge from HK$15 to HK$16 for cabs plying the urban areas and from HK$12.5 to HK$13.5 for those serving the New Territories.

At the same meeting, the TAC also agreed to extend the franchise of the Star Ferry by 10 more years, starting from March 31, 2008.

At present, the Star Ferry operates two routes from Central to Tsim Sha Tsui and Wanchai to Tsim Sha Tsui

The TAC held that the Star Ferry has been providing suitable, efficient ferry service over the years.

It said that the company had pledged to further improve its standard of service if the new franchise was approved.

(HK Edition 11/09/2007 page6)