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One-dollar rise in fare is not enough: taxi drivers

The Young Reporter (2008, March), 40(06), pp. 3.
Author: Gloria Lai Man-ting. Editor: Ho Kwing-lun.
Permanent URL - https://sys01.lib.hkbu.edu.hk/bujspa/purl.php?&did=bujspa0015843

By GLORIA LAI MAN-TING

The one-dollar taxi flagfall rise started from February 28; the taxi industry is now proposing a further change in urban taxi fares.

The industry submitted four proposals to the Transport Advisory Committee (TAC). All proposals suggested higher fares for short trips and lower fares for long trips.

Brendon Tong Yeuk-fong, the president of the Hong Kong Taxi and Public Light Bus Association Limited, said the sharp rise in fuel prices and the increasing number of “discount taxi groups” causes the pressure for having different adjustments to short and long-haul trips.

“The price of fuel has risen from less than two dollars to nearly five dollars per litre now, which creates a great burden on the drivers,” said Brendon Tong. “A one-dollar flagfall rise can only help the situation but not solve the whole problem, so it is a must for us to have a further increase in short-haul trip taxi fares.”

To enhance the taxi industry’s competitiveness after SARS, the government allowed drivers to have discounts for groups of travellers, which was previously illegal, causing the emergence of “discount taxi groups” . Taxi-drivers gave discounts to passengers who took the taxis assigned by the discount group organizers.

Brendon Tong, however, thought that those “discount taxi groups” make it difficult for other drivers to survive, and the proposed reduction of long distance taxi fares is to help those drivers.

“If I were the passenger, I would certainly choose to take a cheaper ride. Therefore we surely can’t compete with those taxi groups if we don’t offer a discount like them,” said Brendon Tong.

The president of the Taxi Associations Federation, Choi Keung, said the proposed adjustment can balance the income of all taxi drivers.

“Discount taxi groups cause a serious problem in the industry. Some drivers have a lot of rides every day while others only have a few. It is so unfair,” said Choi, “If the government accepts our proposal, all taxies in Hong Kong may offer the same 20 per cent discount to long distance travelers and so the passengers don’t have to choose those taxi groups.”

Urban taxis last increased their fares in 1998. Both Brendon Tong and Choi think it’s time to adjust the taxi fare.

“I don’t know why the media only focuses on the rise of flagfall prices. It creates an illusion that all of us will earn more money under the proposed policy,” said Choi. “In fact, the profit of all taxi drivers as a whole will decrease if we have a deduction in long-haul trip fares, which may not be covered by the minor increase in flagfall prices.”

The taxi industry suggested a similar proposal to the TAC in 2003 but failed.

“We are actually suggesting reducing our total revenue in the hope of balancing the income of all taxi drivers, but still we are opposed by so many people. It doesn’t make sense!” he added.

Tsuen Wan District Councilor, Peter Lo Siu-kit however thought that having a further rise in short-haul trip fares is not acceptable.

“The rise in fuel prices may not be a long-term issue. One dollar surcharge has already helped the current situation. What if the fuel prices drop later? Do taxi drivers really need a long term increase in taxi tolls? I don’t think so,” Lo said.

At the same time, Mr Lo thought that offering discounts on long distance trips was a good idea.

“If taxi group drivers can still make money after offering discounts, why can’t the others? This shows that the taxi industry in fact can really have a reduction in fares.” he said.

Poon Ming, an urban taxi driver, felt that offering a 20 per cent dis-count on long-haul trips may not help them to compete with “discount taxi groups” .

“If we offer a 20 per cent discount, they will offer an even better price-like a 30 or 40 per cent discount,” said Mr Poon.

He also thought that taxi group drivers can make money even though they offer discounts, but normal drivers cannot due to their different working systems.

“After receiving the customer’s call, the taxi organizer will assign the customer a specific taxi which is nearest to the customer’s location, and this system guarantees the taxi will have customers in the return ride. But normal taxis are not assigned customers, that’s what makes a difference,” Mr Poon explained.

Passenger Leo Chan agrees that if all the taxis offer 20 per cent discount, it will be more convenient as he need not to call “discount taxi group” organizers anymore. He can choose a taxi randomly on the street.

“It usually takes a few minutes for the assigned taxi to arrive after calling,” he said, “but only those taxi groups offer discounts, so in order to save money, I have no choice.”

Mr Lam, director of Transport Complaints Unit of TAC, said the issue is still being discussed but TAC has not decided when to have a public announcement.

Edited by HO KWING-LUN

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