The Transport Advisory Committee was satisfied with the ferry service Star Ferry provides. The company has committed to improve its service standards if granted a new franchise.

Committee chairman Teresa Cheng said the Government will submit a proposal to the Chief Executive in Council for a final decision after considering the committee's views.

At its meeting today, the committee also discussed the taxi trade's application for introducing a fuel surcharge.

While noting the impact of fuel-price increases on the trade, the committee thinks it would be more appropriate to apply for fare adjustments instead of a fuel surcharge.

Ms Cheng said the fare-adjustment mechanism is a more comprehensive model for evaluating the taxi trade's conditions, and can balance public interest and avoid the passing of fuel-cost changes onto passengers whenever the price fluctuates.

She also said having taxis introduce a fuel surcharge could trigger a knock-on effect on other modes of public transport, such as buses, minibuses and ferries, with a host of negative implications.

"We hope the taxi trade could consider prudently to apply for fare increases within the existing adjustment mechanism," Ms Cheng said.

The committee's current public consultation on taxi service review aims to enhance taxi services' competitiveness, Ms Cheng noted, adding she hoped the trade would take the opportunity to consider whether and how the existing fare structure should be changed.