PLC Paper No. CB(2) 980


Ref : CB2/SS/7/97

Paper for the House Committee meeting
on 13 February 1998

Report for the Subcommittee on subsidiary legislation gazetted on 16 January 1998 relating to fee increases

Purpose

The paper reports on the deliberations of the Subcommittee on subsidiary legislation gazetted on 16 January 1998 relating to fee increases.

The Subsidiary Legislation

2.Eighteen items of subsidiary legislation relating to fee increases were tabled at the Provisional Legislative Council (PLC) meeting on 21 January 1998. They are as follows -

  1. Aerial Ropeways (Safety) Ordinance (Cap. 211)
    Aerial Ropeways (Fees) (Amendment) Regulation 1998 (L.N. 17)

    Amusement Rides (Safety) Ordinance (Cap. 449)
    Amusement Rides (Safety) (Fees) (Amendment) Regulation 1998 (L.N. 18)

  2. Electricity Ordinance (Cap. 406)

    Electricity (Registration) (Amendment) Regulation 1998 (L.N. 21)
    Electricity (Wiring) (Amendment) Regulation 1998 (L.N. 22)

  3. Gas Safety Ordinance (Cap. 51)

    Gas Safety (Gas Supply) (Amendment) Regulation 1998 (L.N. 23)
    Gas Safety (Registration of Gas Installers and Gas Contractors) (Amendment) Regulation 1998 (L.N. 24)
    Gas Safety (Registration of Gas Supply Companies) (Amendment) Regulation 1998 (L.N. 25)

  4. Road Traffic Ordinance (Cap. 374)
    Road Traffic (Public Service Vehicles) (Amendment) Regulation 1998 (L.N. 15)

  5. Road Traffic Ordinance (Cap. 374)
    Road Traffic (Parking) (Amendment) Regulation 1998 (L.N. 27)
    Road Traffic (Registration and Licensing of Vehicles) (Amendment) Regulation 1998 (L.N. 28)
    Road Traffic (Construction and Maintenance of Vehicles) (Amendment) Regulation 1998 (L.N. 30)
    Road Traffic (Public Service Vehicles) (Amendment) (No. 2) Regulation 1998 (L.N. 31)
    Road Traffic (Parking on Private Roads) (Amendment) Regulation 1998 (L.N. 32)
    Road Traffic Ordinance (Amendment of Schedule 3) Order 1998 (L.N. 33)
    Road Traffic Ordinance (Amendment of Schedule 5) Order 1998 (L.N. 34)
    Road Traffic Ordinance (Amendment of Schedule 8) Order 1998 (L.N. 35)

    Ferry Services Ordinance (Cap. 104)
    Ferry Services (Amendment) Regulation 1998 (L.N. 26)

    Road Tunnels (Government) Ordinance (Cap. 368)
    Road Tunnels (Government) (Amendment) Regulation 1998 (L.N. 29)

The Subcommittee

3.The House Committee at its meeting on 23 January 1998 agreed to form a Subcommittee to study the 18 items of subsidiary legislation set out in paragraph 2 above.

4.Under the chairmanship of Hon Ronald ARCULLI, the Subcommittee has held one meeting with the Administration on 4 February 1998. A membership list of the Subcommittee is at Appendix.

Deliberations of the Subcommittee

General

5.The various fee increase proposals are intended to achieve different levels of cost recovery. The Administration has explained that it is

Government policy that fees should in general be set at levels sufficient to recover the full cost of providing the services. Costing reviews are normally conducted every four years. Between two costing exercises, fees are revised on the basis of the movement of the Government Consumption Expenditure Deflator (GCED). In cases where the fees charged are substantially below cost, the fees are revised in accordance with the second phase of the cost recovery programmes concerned.

Aerial Ropeways (Fees) (Amendment) Regulation 1998 (L.N. 17)

Amusement Rides (Safety) (Fees) (Amendment) Regulation 1998 (L.N. 18)

6.Before the Subcommittee proceeded to discuss the two Amendment Regulations, the Chairman declared interest as he is a member of the Board of the Ocean Park Corporation.

7.The two Amendment Regulations seek to increase the fees payable under the Aerial Ropeways (Safety) Ordinance and the Amusement Rides (Safety) Ordinance by about 7% in accordance with the GCED, with the exception of the fees for approval of commencement or resumption of operation of categories A and B amusement rides which are revised according to the second phase of a three-year phasing-in cost recovery programme.

8.Members of the Subcommittee note that the additional revenue arising from the proposed fee increases made under the Aerial Ropeways (Safety) Ordinance and the Amusement Rides (Safety) Ordinance will amount to $1,000 per annum and $19,000 per annum respectively. Despite the moderate increases proposed, members are of the view that the Government should not take the lead in increasing fees and charges at a time of a downturn in the economy but should instead lead the way in freezing them to lighten the burden on the public. Members also consider that the freezing of fees at their current levels for 1997-98 will not have a significant impact on Government revenue and that the Government can seek to recover the full cost at the next fees revision exercise.

9.Members have concluded that the proposed fee increases set out in the two Amendment Regulations should not be supported.

Electricity (Registration) (Amendment) Regulation 1998 (L.N. 21)
Electricity (Wiring) (Amendment) Regulation 1998 (L.N. 22)

10.The two Amendment Regulations seek to increase the fees specified in the Electricity (Registration) Regulation and the Electricity (Wiring) Regulation by 4% to 7% to recover the full cost of providing the relevant services. The additional revenue generated by the proposed fee increases is estimated to be about $500,000 per annum.

11.Members have concluded that the fee increase proposals set out in the two Amendment Regulations should not be supported for the same reasons as set out in paragraph 8 above.

Gas Safety (Gas Supply) (Amendment) Regulation 1998 (L.N. 23)
Gas Safety (Registration of Gas Installers and Gas Contractors) (Amendment) Regulation 1998 (L.N. 24)
Gas Safety (Registration of Gas Supply Companies) (Amendment) Regulation 1998 (L.N. 25)

12.The three Amendment Regulations seek to increase the fees payable under the respective principal regulations. The additional revenue arising from the proposed increases is estimated to be about $150,000 per annum.

13.In response to a member, the Administration has explained that the proposed increase in the fee for renewal of a permit for a cylinder wagon by 23% is in accordance with the second phase of a three-year phasing-in cost recovery programme. All the other fees payable under the three principal regulations are revised upwards by about 7% on the basis of the movement of the GCED.

Having regard to the Subcommittee’s earlier decisions in paragraphs 9 and 11 above, members have concluded that the fee increase proposals set out in the three Amendment Regulations should not be supported.

Road Traffic (Public Service Vehicles) (Amendment) Regulation 1998 (L.N. 15)

14.This Amendment Regulation seeks to increase the fares for hiring taxis licenced to operate within Lantau by 9.1%. Under the proposal set out in the Amendment Regulation, the fare for the first 2 kilometre and each subsequent 0.2 kilometre will be increased from $11.00 to $12.00 and from $1.1 to $1.2 respectively.

15.The Administration has explained that the proposed fare increases have been discussed by the Transport Advisory Committee which supports the proposal. The Panel on Transport has also been briefed on the proposal and members of the Panel have not raised any objection to the proposed fare increases.

16.A member has pointed out that taxi fare increase applications from taxi operators in the urban areas, the New Territories and Lantau are currently considered at different times of a year. He has suggested that the Government explore the feasibility of reviewing fare increase applications from the three sectors of taxi operators at the same time so as to avoid causing confusion to the public. The Administration has undertaken to consider the member’s suggestion.

17.Members note that a fare increase of 9.1% would restore the overall financial position of Lantau taxi operators to a level comparable to their previous average income. In the light of this, members have agreed that the proposed fare increases set out in the Amendment Regulation should be supported.

Ferry Services (Amendment) Regulation 1998 (L.N. 26)
Road Traffic (Parking) (Amendment) Regulation 1998 (L.N. 27)
Road Traffic (Registration and Licensing of Vehicles) (Amendment) Regulation 1998 (L.N. 28)
Road Tunnels (Government) (Amendment) Regulation 1998 (L.N. 29)
Road Traffic (Construction and Maintenance of Vehicles) (Amendment) Regulation 1998 (L.N. 30)
Road Traffic (Public Service Vehicles) (Amendment) (No. 2) Regulation 1998 (L.N. 31)
Road Traffic (Parking on Private Roads) (Amendment) Regulation 1998 (L.N. 32)
Road Traffic Ordinance (Amendment of Schedule 3) Order 1998 (L.N. 33)
Road Traffic Ordinance (Amendment of Schedule 5) Order 1998 (L.N. 34)
Road Traffic Ordinance (Amendment of Schedule 8) Order 1998 (L.N. 35)

18.The five Amendment Regulations and three Amendment of Schedule Orders made under the Road Traffic Ordinance propose to increase various transport-related fees. The Amendment Regulation made under the Ferry Services Ordinance proposes to increase the fee for the issue of a ferry service licence from $175 to $187. The Amendment Regulation made under the Road Tunnels (Government) Ordinance proposes to increase the permit fee for the passage of any vehicle through a Government managed tunnel under special conditions from $82 to $88.

19.The Administration has explained that the majority of the proposed fee increases are made on the basis of the movement of the GCED or in accordance with the second phase of a three-year phasing-in cost recovery programme concerned. The higher rates of increase proposed under the Road Traffic (Parking on Private Roads) (Amendment) Regulation 1998 and the Road Traffic Ordinance (Amendment of Schedule 5) Order 1998 are in keeping with the full cost recovery principle and on traffic management grounds.

20.Members have agreed that the proposed fee increases under the Road Traffic (Parking on Private Roads) (Amendment) Regulation 1998 and the Road Traffic Ordinance (Amendment of Schedule 5) Order 1998 should be supported as the fee increases are intended to deter illegal parking. However, members have concluded that the remaining eight items of subsidiary legislation should not be supported for the same reasons as set out in paragraph 8 above.

Recommendation

21.The Subcommittee recommends that -

  1. resolutions be moved by the Chairman of the Subcommittee to repeal the following 15 items of subsidiary legislation relating to fee increases -

    1. Aerial Ropeways (Fees) (Amendment) Regulation 1998 (L.N. 17);

    2. Amusement Rides (Safety) (Fees) (Amendment) Regulation 1998 (L.N. 18);

    3. Electricity (Registration) (Amendment) Regulation 1998 (L.N. 21);

    4. Electricity (Wiring) (Amendment) Regulation 1998 (L.N. 22);

    5. Gas Safety (Gas Supply) (Amendment) Regulation 1998 (L.N. 23);

    6. Gas Safety (Registration of Gas Installers and Gas Contractors) (Amendment) Regulation 1998 (L.N. 24);

    7. Gas Safety (Registration of Gas Supply Companies) (Amendment) Regulation 1998 (L.N. 25);

    8. Ferry Services (Amendment) Regulation 1998 (L.N. 26);

    9. Road Traffic (Parking) (Amendment) Regulation 1998 (L.N. 27);

    10. Road Traffic (Registration and Licensing of Vehicles) (Amendment) Regulation 1998 (L.N. 28);

    11. Road Tunnels (Government) (Amendment) Regulation 1998 (L.N. 29);

    12. Road Traffic (Construction and Maintenance of Vehicles) (Amendment) Regulation 1998 (L.N. 30);

    13. Road Traffic (Public Service Vehicles) (Amendment) (No.2) Regulation 1998 (L.N. 31);

    14. Road Traffic Ordinance (Amendment of Schedule 3) Order 1998 (L.N. 33); and

    15. Road Traffic Ordinance (Amendment of Schedule 8) Order 1998 (L.N. 35).

  2. the following Amendment Regulations and Order relating to fee increases be supported -

    1. Road Traffic (Public Service Vehicles) (Amendment) Regulation 1998 (L.N. 15);

    2. Road Traffic (Parking on Private Roads) (Amendment) Regulation 1998 (L.N. 32); and

    3. Road Traffic Ordinance (Amendment of Schedule 5) Order 1998 (L.N. 34).

    Advice sought

    22.Members are invited to support the recommendations of the Subcommittee set out in paragraph 22 above.


    Provisional Legislative Council Secretariat
    11 February 1998

    Appendix

    Subcommittee on subsidiary legislation gazetted on 16 January 1998 relating to fee increases

    Membership list
    Hon Ronald ARCULLI, JP (Chairman)
    Dr Hon Raymond HO Chung-tai, JP
    Hon Mrs Selina CHOW, JP
    Hon Henry WU
    Hon CHAN Kam-lam
    Hon NGAN Kam-chuen

    Total : 6 members