After conducting a review of taxi operation in the city, the Transport Advisory Committee (TAC) recommended changing the taxi fare structures by raising fares for short-haul trips and lowering fares for long-haul trips.

The proposal has been accepted by the government and it is believed the recommendations would help taxi fares to be set in line with market conditions and be more competitive.

The TAC was invited by the government to review the mode of operation and the quality of taxi service in Hong Kong last year.

Currently, the same flagfall charges and increment in taxi fares apply to both short- and long-haul trips.

Releasing the review report yesterday, TAC Chairman Teresa Cheng said more views they received during a public consultation conducted from October 2007 to January this year supported raising fares for short-haul trips and lowering fares for long-haul trips.

Although she said the proposed fare structure revision is not targeted at "discount gangs" (taxis operators who offer discounts for long-haul trips), the change can help eliminate them.

The TAC will let the taxi trade decide on details of adjustment to the fare structure. For example, definition of short-, medium- and long-haul trips and their respective fare levels.

Meanwhile, despite calls for legislation against fare bargaining, the TAC decided such move is unnecessary.

Most of the 10 other overseas cities the TAC took as reference do not ban fare bargaining and none punishes passengers for fare bargaining.

In Hong Kong, taxi drivers can refuse to accept lower fares requested by passengers, and passengers assaulting taxi drivers is forbidden under the law.

The TAC also made suggestions to improve taxi services and expand business opportunities for the trade.

One of them is the introduction of personalized "fixed route fixed fare taxi services" on a trial basis between cross-boundary control points and the airport.

Other suggestions include the introduction of premium taxis and wheelchair-accessible taxis.

Although taxi associations welcomed the proposal concerning changes to the fare structures, they expressed disappointment over the TAC's decision not to legislate against fare bargaining.

Kwok Chi-piu, Chairman of the Urban Taxi Drivers Association Joint Committee, told China Daily that any changes would be meaningless without the legislation.

"No matter what the meter says, if passengers are allowed to bargain, the discount gangs will take away our businesses," he said.

He estimated that as many as 80 percent of taxi drivers in Hong Kong offer discounts to passengers.

Lai Ming-hung, chairman of the Taxi and Public Light Bus Concern Group, also wants legislation against fare bargaining.

"There have been many cases where taxi drivers who refused to offer discounts got beaten up by passengers," he said.

Meanwhile, Kwok said the taxi trade has already agreed that the flagfall charge should be HK$18.

At the same time, the drivers agreed upon HK$1.5 as the charge for every 1/5 km thereafter for short-haul trips and HK$1 for long-haul journeys, he said.

But the trade has yet to reach a consensus on the distance of long-haul trips.

Most drivers believe 8.9 km should be defined as long-haul, but taxi owners said 12 to 14 km is more suitable.

The taxi trade will meet with the Transport Department next Thursday to discuss the review report.

(HK Edition 06/06/2008 page1)