Taxi cab owners want to raise fares again and they're calling for a HK$22 flag down rate, two dollars higher than the present fare. The application was disclosed, after the taxi owners met with the Transport Department on Monday.

Lai Ming-hung of Taxi & PLB Concern Group said 30 taxis and drivers organizations had reached a consensus that the fare for urban taxis should increase by HK$2 to HK$22. The fare on taxi meters would rise from HK$1.5 to HK$1.6 each time the meter ticks over, based on time and distance, for the first 9 kilometers and then HK$1 thereafter.

Lai explained that inflation, increased insurance rates and maintenance costs were behind the request for higher fares. The industry said it must await the approval of the government, but hoped the increase could be implemented by September of this year.

According to the Transport Department, there are 18,138 taxis operating in Hong Kong - of which 15,250 are urban taxis (red), 2,838 are New Territories taxis (green) and 50 are Lantau taxis (blue). The average daily taxi patronage is about 1 million.

However, some taxi drivers are worried that the increase in taxi fares will affect business by reducing the number of passengers. One taxi driver said only the taxi owners want fare increases to help the value of their licenses appreciate. Drivers don't like it, he said, because it would raise rents and reduce business.

Tam Kai-kwong, chairman of the Association for the Rights of Taxi Drivers, said he disagreed with the HK$2 increase in flag down fare. He said he was worried the owners would increase rental rates and that individual taxi drivers would receive no benefit. Meanwhile, he said the owners would benefit from enhanced values of their licenses. "The taxi rent has been increased 15 to 20 percent in the past two years by the taxi owners", Tam added. "The income of the frontline drivers might be reduced, for there might be less people taking taxis. They could choose buses, subway and other vehicles".

He did not oppose the suggestion that the fare on taxi meters jump from HK$1.5 to HK$1.6 each time.

An application in May, last year, was abandoned due to lack of consensus about the amount of the increase. The last fare increase was in July, 2011, when the flag fare was increased from HK$18 to HK$20.

Over 10 New Territories taxi organizations plan to put forward an application for fare increase on Tuesday, suggesting the flag rate increase by HK$2.5 to HK$19.

The spokeswoman from the Transport Department said that the department will examine the applications and also consult the Transport Advisory Committee and Legislative Council. She said public acceptance of another increase would be a factor in the considerations.

fanfeifei@chinadailyhk.com

(HK Edition 01/22/2013 page1)