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The Transport Advisory Committee proposes greater flexibility in the taxi fare structure and the introduction of fixed-route fixed-fare taxi services between checkpoints and the airport to boost the trade's competitiveness and benefit passengers.
The committee held a public consultation from October to January to gauge views on the taxi trade's development. More than 6,600 written submissions were received.
Committee Chairman Teresa Cheng said the review covered the mode of charging and service, and the quality of taxi service.
On taxi fare structure policy, the committee suggested the policy on the fare structures of the urban, New Territories and Lantau taxis should be changed from "front-loaded and the subsequent incremental charges being calculated at the same rate" to "front-loaded and thereafter on a varying descending scale for incremental charges".
Level-playing field
Ms Cheng said the consultation found more views in support of lowering fares for long-haul trips and raising fares for short-haul trips and the recommended change can align the taxi fare structure with those of railways, franchised buses and green mini-buses to increase taxis' competitiveness.
The move can help restore a level-playing field for taxi operators whose business have been affected by the "discount gangs" who offer cheap fares for medium- and long-haul trips. Taxi operators will be given a fair and transparent opportunity to propose fares for longer haul trips at a competitive rate to suit market conditions.
It will also benefit passengers through the provision of more competitive taxi services, especially for longer haul trips as the new fare framework allows the trade to propose fares at a varying descending scale for these trips in the light of the market situation.
"We have considered whether it should specify the length of journey distances for short-, medium- and long-haul trips and their respective fares. However, we note the views of members of the taxi trade on fare levels are diverse, as witnessed by the huge number of different fare restructuring proposals submitted to the committee during the consultation.
"Besides, having regard to the changing market situation, we consider the best approach is to create this framework of fare structure policy which will then enable the three different types of taxis to propose adjustments to their fare structures having regard to the changing market situation," Ms Cheng added.
"While recommending the above policy change, we are of the view the existing considerations for handling taxi fare adjustment applications should stay. We also note the trade has submitted several different fare change proposals to the Transport Department and it will continue discussion. We hope the trade will continue to work towards reaching a consensus."
Fare regulatory regime
As for the taxi fare regulatory regime, the committee noted diverse views were received during the consultation. The majority are satisfied with the existing uniform mode of charging based on travelling mileage, waiting time and other additional services provided for taxi services in Hong Kong.
The committee recommended that Hong Kong in the longer term, when suitable conditions exist, should consider moving towards a more flexible taxi fare regulatory regime, such as allowing individual taxi operators to apply to the Government for setting different fare scales subject to the maximum flagfall and subsequent incremental charges prescribed by the Government. This will eventually allow an even greater choice to passengers and competition among the trade.
Nevertheless, the committee cautioned Hong Kong has not yet had the suitable conditions for making such changes. Seventy per cent of Hong Kong taxis are operated by individual rentee-drivers. There are over 30,000 taxi operators in Hong Kong.
Ms Cheng said: "Allowing individual taxi operators to apply for setting different fare scales may create a lot of confusion to passengers and give rise to practical difficulties in processing the large volume of applications. In the longer term, Hong Kong can consider the feasibility of allowing more flexibility in the taxi fare regulatory regime."
Fare bargaining
The committee said passengers should pay the fare indicated on the meter and not haggle for discounts.
It has looked into the practices of over 10 other overseas cities and noted most do not ban fare bargaining. Cities prohibiting fare bargaining - Beijing, Shanghai, Vancouver, Toronto, Melbourne and Seoul - do not impose penalties on passengers.
Ms Cheng said: "We notice some members of the taxi trade strongly request legislative amendments be made to forbid fare bargaining. But the public's views on this issue are diverse. We have considered carefully the desirability and feasibility of legislating against fare bargaining by passengers. We agree taxi passengers should pay according to the meter, but supporting this principle does not equate to concurring in taking the extreme course of action to enact legislation to impose a penalty on passengers for fare bargaining."
Premium taxis
Prof Jim Chi-yung of the committee's Public Transport Services Subcommittee said premium taxis are proposed to broaden the trade's business opportunities and cater for passengers' different needs.
"We recommend the introduction of personalised fixed-route fixed-fare taxi services in Hong Kong. We suggest implementing these services on a trial basis between cross-boundary control points and the airport as these points are relatively more well defined and frequently visited by tourists.
"As the recommended changes on taxi fare structure policy will allow varying descending fares be charged for incremental distances to benefit passengers on a territory-wide basis, we do not suggest to implement personalised fixed-route fixed-fare taxi services on a city-wide basis at present to avoid creating too many changes at the same time, which may confuse passengers and the trade."
He encouraged the trade to put forth concrete proposals on the introduction of premium taxis and personalised "fixed route fixed fare taxi services" as there are some practical issues to be resolved.
The committee supports the introduction of wheelchair-accessible taxis in Hong Kong and encourages the trade explore the appropriate vehicles for wheelchair-bound passengers.
On upgrading taxi service quality, the committee proposed:
* encouraging more taxi drivers to join training programmes while shorter and more focused training courses should be run to meet driver need;
* implementing measures to boost the Taxi Driver Commendation Scheme and offer drivers more incentives to improve service; and,
* upgrading the driver identity plates.
More details on the report can be read here.
Implementation timeframe
Welcoming the suggestions, the Transport Bureau said it agrees the trade should keep pace with the times and noted the committee's proposal on fare structure policy will help set fares in line with market conditions and be more competitive.
In handling future applications for taxi fare revision the Government will adopt this new policy, taking into account factors under the existing fare adjustment mechanism.
The bureau said publicity will be bolstered to urge taxi passengers to pay according to the fare meter. Discussions with the trade will be conducted to work out details for introducing premium taxis and personalised fixed-route fixed-fare taxi services.
Meanwhile, Government departments will work together with a view to implementing the recommendations early next year.
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