Ref: CB1/PL/TP/1

Members present :

Hon Mrs Miriam LAU Kin-yee, JP (Chairman)
Hon LAU Kong-wah (Deputy Chairman)
Hon Edward HO Sing-tin, JP
Hon Albert HO Chun-yan
Dr Hon Raymond HO Chung-tai, JP
Hon LEE Wing-tat
Hon LEE Kai-ming, JP
Hon Mrs Selina CHOW LIANG Shuk-yee, JP
Hon CHAN Wing-chan
Hon CHAN Kam-lam
Hon Andrew WONG Wang-fat, JP
Hon LAU Chin-shek, JP
Hon Andrew CHENG Kar-foo
Hon TAM Yiu-chung, JP
Hon FUNG Chi-kin
Dr Hon TANG Siu-tong, JP

Members attending :

Hon CHAN Yuen-han
Hon CHOY So-yuk

Public officers attending :

For Item IV

Transport Bureau

Mr Nicholas NG Wing-fui, Secretary for Transport

Mr Alex FONG, Deputy Secretary for Transport

Transport Department

Mr Robert FOOTMAN, Commissioner for Transport

Mrs Dorothy CHAN, Deputy Commissioner for Transport

Mrs Mary MA, Principal Executive Officer/Licensing

For Item V

Transport Bureau

Mr Nicholas NG Wing-fui, Secretary for Transport

Ms Linda LAI, Deputy Secretary for Transport

Mr Patrick HO, Principal Assistant Secretary for Transport

Transport Department

Mr Robert FOOTMAN, Commissioner for Transport

Ms Zina WONG, Assistant Commissioner for Transport

Mr Daniel AU, Assistant Commissioner for Transport (Atg)

For Item VI

Transport Bureau

Mr Nicholas NG Wing-fui, Secretary for Transport

Ms Linda LAI, Deputy Secretary for Transport

Mr Patrick HO, Principal Assistant Secretary for Transport

Transport Department

Mr Robert FOOTMAN, Commissioner for Transport

Ms Zina WONG, Assistant Commissioner for Transport

Attendance by invitation :

For Item IV

Hong Kong Society of Articulated Vehicle Driving Instructors Ltd

Mr TANG Poon-kun, Chairman
Mr AU Kin-keung, Vice-Chairman

Driving Instructors Merchants Association, Ltd

Mr TAM Sum, President
Mr TSANG Chung-wai, Chairman

Public and Private Light Buses Driving Instructors' Society

Mr LEUNG Chi-shing, Consultant
Mr MA Hing-chung, Chairman

Articulated & Commercial Vehicle's Instructors Union

Mr CHIU Tung-ching, Vice-Chairperson
Mr NG Yam-shing, Vice-President

Hong Kong Commercial Vehicle Driving Instructors Association Ltd

Mr CHENG Cho-kwong, Chairman
Mr LAM Kui, Vice-Chairman

United Hong Kong Island Motor Car Driving Instructors Association Ltd

Mr WONG Biu, Vice-President

Hong Kong Kowloon Goods Vehicles, Omnibuses and Minibuses Instructors Association Ltd

Mr WAI Shau-fun, Chairman
Mr KOO Chee-shing, Secretary

Driving Instructors Association

Mr WONG Chung-sang
Mr LAI Man-kam

Kowloon Motor Driving Instructors' Association Ltd

Mr David CHEONG Tai-wa, Salary Director

Hong Kong Driving Instruction Club Ltd

Mr LAI Siu-kwan, Vice-Chairman
Mr LAM Ping-tak, President

Motor Transport Workers General Union

Mr WAN Kam-on, Chief Executive
Mr LEUNG Chek-wah, Executive of Kowloon Branch

Representatives of a group of ex-instructors of the Hong Kong School of Motoring Ltd

Mr LAM Hok-ming, Representative
Mr WONG Lok-kan, Secretary

For Item VI

GMB Maxicab Operators General Association Ltd

Mr HIEW Moo-sau, Chairman

Clerk in attendance :

Mr Andy LAU,
Chief Assistant Secretary (1)3 (Atg)

Staff in attendance :

Mr Sarah YUEN,
Senior Assistant Secretary (1)4

I Confirmation of minutes and matters arising
(LC Paper No. CB(1) 1329/98-99 -- Minutes of the meeting held on 26 March 1999
LC Paper No. CB(1) 1390/98-99(04) -- List of follow-up actions)

The minutes of the meeting held on 26 March 1999 were confirmed.

2. Members noted the Panel's list of follow-up actions.

II Information papers issued since last meeting
(LC Paper No. CB(1) 1286/98-99 -- Correspondence regarding a complaint case on the Tung Chung Road prohibited zone)

3. Members noted the above information paper and agreed to include its subject matter, Tung Chung Road prohibited zone, on the Panel's list of outstanding items for discussion. In particular, they would like to be briefed on the reasons for prohibition, the operation of the relevant permit system and the road improvement programme between South and North Lantau.

III Items for discussion at the next meeting scheduled for 25 June 1999
(LC Paper No. CB(1) 1370/98-99(01) -- List of outstanding items for discussion)

4. In response to Mr Edward HO's concern about the mechanism for the planning of new roads and road improvements, with particular regard to the cost-effectiveness of widening the road vis-a-vis the construction of a dual three-lane road in the first place, members agreed to discuss the planning of roads and highways including the procedures leading to implementation of a road project at the next meeting scheduled for 25 June 1999.

5. Apart from the above item, members also agreed to discuss the following items at the next meeting:

1. Progress of Year 2000 compliance exercises for the Kowloon-Canton Railway Corporation (KCRC), the Mass Transit Railway Corporation (MTRC) and the Creative Star (in respect of the Octopus system);

2. Privatisation of MTRC; and

3. Proposed amendments to the Road Traffic (Traffic Control) Regulations.

(Post-meeting note: The agenda was subsequently revised to include an additional item on financing of Ma On Shan Rail and KCR Extension to Tsim Sha Tsui.)

6. Members also agreed to include an item "Design of highways and roads" in the list of outstanding items for discussion, the contents of which included the design standards and features of roads, the provision of traffic noise mitigation measures and contingency plans for closure of roads.

IV Policy on driving instructors' licence
(LC Paper No. CB(1) 1370/98-99(02) -- Memo from the Complaints Division referring to the Panel a petition made by "The Coalition Fighting for the Re-issuance of Driving Instructor's Licence"

LC Paper No. CB(1)1390/98-99(01) -- Submission from the Coalition Fighting for the Re-issuance of Driving Instructor's Licence)

7. The Chairman drew members' attention to a letter from the Democratic Party on the captioned subject which was tabled at the meeting and circulated to members after the meeting vide LC Paper No. CB(1)1406/98-99(02).

Meeting with deputations

8. The Chairman welcomed the deputations and invited their views on the subject under discussion.

Hong Kong Society of Articulated Vehicle Driving Instructors Ltd
Public and Private Light Buses Driving Instructors' Society
Articulated & Commercial Vehicle's Instructors Union
(LC Paper No. CB(1) 1390/98-99(02) -- Submission from the Articulated & Commercial Vehicle's Instructors Union)

9. Mr LEUNG Chi-shing spoke on behalf of the three captioned organisations and requested a firm answer from the Administration to their request for reissue of private driving instructor (PDI) licences. He also opined that instead of reviewing the number of PDIs every year to see if there was a need for relicensing, there should be a long-term policy in this regard. Highlighting the decrease in market share by off-street driver training from 50% to 40% and the repeated lay-offs by the Hong Kong School of Motoring Ltd (HKSM) due to business loss, he further queried the plan to establish further driving schools. In his view, this haphazard way of establishing new driving schools would not only affect the livelihood of existing PDIs but would also impact on the business of the three existing driving schools. Given the demand for on-street driver training, the Administration was urged to maintain the dual system of on-street and off-street learner driver training by issuing additional PDI licences in a fair manner so as to offer better service choice for consumers.

Driving Instructors Merchants Association, Ltd (DIMA)
(LC Paper No. CB(1) 1370/98-99(03) -- Submission from DIMA)

10. Mr TAM Sum, President of DIMA, elaborated on DIMA's position stated in its submission and urged the Administration to defer the plan to establish a driving school in Tsuen Wan in the face of the current economic recession which had led to a drop in the number of learner drivers. Highlighting the constraints of the driving instructor (DI) licences issued to instructors employed in the driving schools, which were only valid for as long as the instructors remained in the employment of the driving schools, he also urged the Administration to issue additional PDI licences to all eligible applicants, including the said DI licensees so that training and licensing resources spent on them would not become abortive.

Hong Kong Commercial Vehicle Driving Instructors Association Ltd. (HKCVDIA)
(LC Paper No. CB(1) 1370/98-99(04) -- Submission from HKCVDIA)

11. Mr CHENG Cho-kwong, Chairman of HKCVDIA, briefed members on his Association's submission which called on the Administration to allow existing PDIs to apply for all types of driving instructor licences. He highlighted that at a meeting with the Administration on 13 January 1998, the latter had undertaken to allow commercial vehicle driving instructors to apply for light goods vehicle driving instructor licences. On the effectiveness of the Government's proposed measures to assist PDIs to earn a livelihood, Mr CHENG pointed out that the establishment of the Tsuen Wan school might be of little help as it might not be able to absorb all PDIs in need. As a related issue, he also commented that the licensing of taxi drivers through written tests alone was risky and attributed the high accident rate of taxis to this licensing practice. He further opined that all drivers with three years' experience should be allowed to apply for all types of commercial vehicle driver licences, and considered it unfair to require articulated vehicle driver licence applicants to qualify as goods vehicle drivers first.

12. In response to Mr CHAN Wing-chan on whether the issue of new PDI licences to all classes of drivers would affect the livelihood of existing PDIs, Mr CHENG Cho-kwong replied in the affirmative. He further pointed out that as the number of driving school instructors was only about 1,400, new PDI licences should instead be issued to them only so that the supply of PDIs could be maintained without resulting in road congestion caused by too many learner drivers on the roads.

United Hong Kong Island Motor Car Driving Instructors Association Ltd (UHKMCDIA)

13. Mr WONG Biu, President of UHKMCDIA, opined that the establishment of new driving schools and the reissue of PDI licences would seriously affect the livelihood of PDIs, not to mention the impact caused by existing driving schools. He also pointed out that it was not desirable to invite PDIs to invest in driving schools. Instead, sites should be made available to them for conducting training so as to help them survive.

Hong Kong Kowloon Goods Vehicles, Omnibuses and Minibuses Instructors Association Ltd (HKKGVOMIA)
(LC Paper No. CB(1) 1370/98-99(07) -- Submission from HKKGVOMIA)

14. Mr WAI Shau-fun, Chairman of HKKGVOMIA, stated his Association's support for a full opening of PDI licences to all eligible applicants in a fair and equitable manner notwithstanding a shrinking driver training market. He also complained that the development of on-street learner driver training was presently being suppressed in favour of driving schools. For example, the former Tsuen Wan training and testing site had been closed since 30 April 1999 but the replacement site would not open until 10 May 1999. During this interim period, buses and heavy vehicles had no place to conduct driver training. This was unfair to the relevant learner drivers as they needed on-street practice.

Driving Instructors Association (DIA)
(LC Paper No. CB(1) 1370/98-99(05) -- Submission from DIA)

15. Mr LAI Man-kam of DIA expressed dissatisfaction with the Administration's decision to stop issuing PDI licences under the pretext that on-street learner driver training would cause road congestion. He stressed the importance of on-street experience to learner drivers and the need to maintain a dual system of PDIs and driving schools to offer consumers choice and keep training fees low. As such, he urged the Administration to reissue a limited number of PDI licences in a fair and reasonable manner when the demand for driving tests increased as economy improved so that all those eligible could apply and no particular group would be given priority treatment. He further pointed out that driving schools had only been able to operate because the Administration was treating them favourably by ensuring their students a shorter queuing time for driving tests.

Hong Kong Driving Instruction Club Ltd (HKDIC)
(LC Paper No. CB(1) 1370/98-99(06) -- Submission from HKDIC)

16. Mr LAI Siu-kwan, Vice Chairman of HKDIC, briefed members on HKDIC's submission. He reaffirmed HKDIC's objection to the reissuing of new PDI licences for reasons stated therein.

17. Miss CHAN Yuen-han enquired whether HKDIC would still object to the reissuing of additional PDI licences if better traffic control measures could be instituted to minimize traffic congestion. In reply, Mr LAI pointed out that in view of Hong Kong's limited road capacity and the large number of people who could apply for PDI licences, the issue of additional PDI licences would have implications on traffic. In his view, a long-term approach should be formulated to minimise the impacts of relicensing.

18. In response, Miss CHAN Yuen-han commented that if Government could place equal emphasis on both on-street and off-street driver training so that the two could be conducted in parallel, it would be possible for on-street learner driver training to obtain sufficient business to support the reissuing of additional PDI licences. Moreover, the number of applicants for PDI licences might not be as great as HKDIC expected. Mr LAI was unconvinced and drew members' attention to the declining demand for driving tests.

Kowloon Motor Driving Instructors' Association Ltd (KMDIA)
(LC Paper No. CB(1) 1390/98-99(03) -- Submission from KMDIA)

19. Mr David CHEONG of KMDIA briefed members on KMDIA's submission. In gist, KMDIA did not think it was the right time to reissue PDI licences. It would only support the issue of further PDI licences when the time was appropriate and after due consideration had been given to all factors stated in its submission.

Motor Transport Workers General Union (MTWGU)

20. Mr WAN Kam-on summarised MTWGU's views as follows-

1. Government should conduct a comprehensive review in the form of a questionnaire to solicit instructors as well as learner drivers' views on its policy on PDI licensing as soon as practicable so as to take into consideration views from all relevant parties before making the decision on PDI relicensing.

2. Government should carefully assess the impacts of the establishment of small driving schools on the PDI licensing system, road capacity, and PDIs' rights, and provide more information on such small driving schools to facilitate instructors' understanding of this new mode of driver training.

3. Government should provide specific details regarding its plan to reissue PDI licences to enable existing PDIs to consider in a more informed manner whether under the present economic climate the plan should proceed.
   

Representatives of a group of ex-instructors of the Hong Kong School of Motoring Ltd (HKSM ex-instructors)

21. A submission from a group of ex-instructors of HKSM was tabled at the meeting and circulated to members thereafter vide LC Paper No. CB(1)1406/98-99(01).

22. Mr LAM Hok-ming of HKSM ex-instructors considered it unfair that the DI licences issued to driving school instructors should only be valid for as long as the instructors remained in the employment of the designated driving schools. He pointed out that as these instructors were well experienced and had to meet all licensing requirements when licensed by the Transport Department (TD), their licences should not be revoked simply because of the lay-off decision made by the driving schools, which were essentially commercial set-ups. Moreover, they were laid off only because of business loss on the part of the driving schools but not because of their breaching of rules. Pointing out that 30% of the DIs in HKSM were part-time DIs, he also pointed out that the lay-offs were indeed acts to keep staff costs low or else HKSM would not be able to continue employing part-time DIs and even to recruit new DIs in 1996 shortly after the lay-off exercise in 1995.

23. Mr LAM then expressed support for the reissuance of new PDI licences having regard to the fact many of the existing PDIs were due for retirement. According to TD's data, only around 30 of them were below 50 while over 47% were between 50 and 60 and 50% over 60. As these existing PDIs retired, the market share for on-street training would shrink if no new PDI licences were issued to fill the market gap. To ensure competition, a dual system of on-street and off-street driver training should be maintained with continued supply of PDIs.

Meeting with the Administration
(LC Paper No. CB(1) 1370/98-99(08) -- Information paper provided by the Administration)

The overall policy

24. Mrs Selina CHOW attributed the above divergence of views to the Government's unclear and undecided driver training policy, which had led to conflicts of interests within the trade, especially in the face of the present economic downturn affecting the business of both PDIs and driving schools. To improve the situation, she stressed the need for the Administration to clearly explain its driver training policy, including the reasons for suspending the issue of new PDI licences on one hand whilst establishing driving schools on the other, the objectives and targets of setting up driving schools and whether it had assessed the impacts of driving schools on PDIs, etc.

25. In response, the Secretary for Transport (S for T) emphasised that as reflected by the deputations, the issue of PDI licence was a complicated matter and hence warranted careful examination. Where Government's overall policy was concerned, the primary objective of driver training was to ensure that all learner drivers could receive comprehensive and up-to-standard training before they drove themselves for road safety reason. As such, driving schools were introduced in the Eighties for its proven success in enhancing training standards overseas. Their successful operation had re-shuffled the market share between PDIs and driving schools and offer further choice for consumers. S for T then reaffirmed the Administration's undertaking to ensure sufficient physical and manpower resources in both on-street and off-street training modes as long as the public found the current dual system agreeable notwithstanding difficulties in identifying suitable new school sites and a dwindling PDI population since the moratorium on new PDI licences was imposed in 1972. Members were further assured that in general, learner drivers had no difficulty in securing instructors from either source, and the Administration would continue to place equal emphasis on both.

The dual system

26. Miss CHAN Yuen-han pointed out that the Administration was indeed giving preferential treatment to driving schools instead of placing equal emphasis on both modes of driver training. For example, not only were driving schools allowed to lay off staff time and again to cut costs for survival but to enable them to fare better with decreased competition, the Administration had also stopped issuing PDI licences. In response, S for T emphasised the need for the Administration to co-ordinate the establishment of driving schools in accordance with demand and site availability, and PDI licences would be issued as necessary to maintain the dual system. Members were however unconvinced and called for an uniform treatment to PDIs as was the case for driving schools.

27. Miss CHAN Yuen-han further pointed out that it was unfair to require learner drivers taking driving tests through PDIs to queue longer. At her request to account for such unfairness, the Deputy Commissioner for Transport (DC for T) explained that such queuing arrangement had been in force since the first driving school was opened and was necessary to encourage the establishment of driving schools, which as opposed to PDIs involved substantial investment and more operation restrictions. She also pointed out that the current difference in queuing time was small being only slightly more than one month.

28. The Chairman shared Miss CHAN's views and opined that the Administration should demonstrate to both the trade and members that how PDIs could co-exist with driving schools. DC for T in response pointed out that the Tsuen Wan school was a new type of driving school specially introduced to allow participation of small operators and PDIs in off-street driver training. The Administration had in fact arranged site visits and briefings for members of the trade including PDIs on this new mode of personalised driver training. The Chairman however opined that in order to make the dual system a true success, additional support had to be granted to PDIs. She also emphasised the importance of formulating a clear long-term driver training policy to ensure the continued operation of PDIs.

29. Mr CHAN Wing-chan also urged the Administration to fairly implement the dual system and queried whether the suspension of issue of new PDI licences since 1972 was a way to gradually phasing out on-street learner driver training.

30. Mr Andrew CHENG questioned the Administration's determination to maintain the dual system. Pointing out that PDIs were already struggling to survive in the face of the declining demand for driving tests, he opined that the Administration should not seek to establish further driving schools to worsen the situation.

31. Mr Andrew WONG also opined that the Administration appeared to have no intention to implement the dual system. In his opinion, it would not matter if the system was single- or double-barrelled as long as the policy was fair and clear.

32. To ensure the existence of a dual system, Mrs Selina CHOW strongly urged the Administration to take the following actions -

1. Issue PDI licences as long as the applicants could meet the licensing requirements instead of as a means to regulating the market;

2. Replace the present PDI and DI licences with a single type of driving instructor licences;

3. Enable PDIs to participate in the operation of driving schools through land grants instead of asking them to invest in driving schools;

4. Ensure equal treatment of PDIs and driving schools by eliminating all unfair practices that favoured learner drivers of driving schools.

Measures to help PDIs

33. In response to Mr CHAN Wing-chan and Mrs Selina CHOW on reasons for ceasing to issue PDI licences since 1972, i.e., even before the introduction of driving schools, S for T reported that the move was necessary to maintain a balance between supply and demand.

34. In consideration of PDIs' ageing problem, members opined that new PDI licences should be issued as appropriate to maintain a continued supply of PDIs to ensure healthy development of the trade. Commenting on the request, S for T highlighted the declining demand for driving tests from nearly 220,000 in 1993 to below 170,000 lately and hence there was at present no justification to issue new PDI licences. He also drew members' attention to the conflicting views within the trade in this regard. Members were however unconvinced. In particular, Miss CHAN Yuen-han pointed out that if PDIs could be assured of a secure future with the provision of a level playing field, they would not object to issue of new PDI licences.

35. In reply to the Chairman on the appropriate number of PDI licences, S for T emphasised that this had to be determined by the market but the Administration would welcome the trade's views. Members were not satisfied with the answer. Mr CHAN Wing-chan said that the number of new licences could be easily determined by referring to the number of retiring PDIs. Mr Andrew CHENG also pointed out that the Administration should assert its policy making role instead of soliciting the public's assistance in showing the way forward. He urged the Administration to size up the present situation for making an informed decision. In response, S for T reported that the Administration was already planning to conduct an in-depth analysis of driver training demand and preferences after opening of the Tsuen Wan driving school. He assured members that when the relicensing decision was made, due consideration would be given to views expressed at this meeting.

36. As regards Mrs Selina CHOW and Mr Andrew CHENG's proposal to provide off-street training sites for PDIs at rural areas, DC for T advised that vacant Government lots could be made available for use by short term tenancy and driving instructor organisations could always make such request for the consideration of the Administration.

Driving schools

37. Mrs Selina CHOW enquired whether driving schools were established for the purpose of enhancing training standards or for reducing traffic congestion caused by on-street driver training. In her view, both justifications could not stand as the relevant problems could be easily solved by imposing tighter licensing requirements and by asking PDIs to conduct training away from the city centre. She therefore viewed the introduction of driving schools supplemented by the freeze of the number of PDIs an act of market interference. In response, S for T confirmed that both the above two purposes were behind the introduction of driving schools. While acknowledging PDIs' contributions, he also highlighted the important role played by driving schools in achieving these purposes. DC for T supplemented that in 1997, 430,000 hours of off-street training were conducted by existing driving schools. As such, driving schools could greatly reduce traffic load and hence inconvenience to other road users.

Grievances of HKSM's ex-instructors

38. Concerning the plight of HKSM's ex-instructors whose DI licences were revoked after they had been laid off, DC for T emphasised in response to Miss CHAN Yuen-han that PDIs and driving school instructors were different having regard that the latter were employed and only licensed to conduct training for driving schools. She further pointed out that in HKSM's 1998 lay-off exercise, its instructors were indeed given a choice between cutting working hours and salaries and lay-off. Moreover, instructors laid off by driving schools out of financial considerations could be reissued with their DI licences without having to go through any tests if they were re-employed within three years.

Follow-up actions

39. At the Chairman's request for a comprehensive review of the current driver training policy, including PDI and DI licensing issues, S for T pointed out that the Administration had all along been reviewing the said policy. Mrs Selina CHOW and Miss CHAN Yuen-han were unhappy with the reply and requested the Administration to revert to the Panel with concrete measures for dealing with the problems highlighted within a certain time frame.

40. The Chairman agreed that given the stated policy of allowing the co-existence of on-street and off-street driver training, the Administration should formulate more concrete measures to achieve the said policy objective. She further advised that in examining the issue, the Administration should take into account the following -

1. The ageing problem of existing PDIs;

2. The licensing arrangement for instructors laid off by HKSM;

3. The future prospects of PDIs in the light of the decreasing demand for public light bus and articulated vehicle driving tests;

4. The provision of off-street training sites for PDIs; and

5. The views expressed by the industry.

41. The Administration undertook to report on the outcome of the review in November 1999. Miss CHAN Yuen han requested that non-Panel members be notified when the Administration reported back to the Panel.	Admin

V Review on public transport for the airport
(LC Paper No. CB(1) 1284/98-99 -- Extract of the minutes of the meeting between LegCo Members and the North Provisional District Board members on 5 November 1998 on the issue of direct bus service between the North District and the airport

LC Paper No. CB(1) 1370/98-99(09) -- Information paper provided by the Administration

LC Paper No. CB(1) 1390/98-99(05) -- Plan showing the rationalised shuttle bus network in Chek Lap Kok)

42. Members noted the information paper prepared by the Administration. In view of time constraints, they agreed to withhold discussion of the above item. If necessary, they would forward written questions to the Administration for follow-up.

43. Mr CHAN Kam-lam said that there had been suggestion from employees of the airport to reroute bus route E22 to stop near Gate House No. 3 of the airport. At the Chairman's request, the Administration agreed to provide a written reply in this regard.

(Post-meeting note: The Administration's reply was circulated vide LC Paper No. CB(1) 1500/98-99 dated 11 June 1999.)

VI Review of green minibus operations on Hong Kong Island
(LC Paper No. CB(1) 1370/98-99(10) -- Information paper provided by the Administration)

44. The Chairman drew members' attention to a submission from the GMB Maxicab Operators General Association Ltd. (GMB Association) which was tabled at the meeting and circulated to members thereafter vide LC Paper No. CB(1)1406/98-99 (03).

GMB Association's concerns and requests

45. Mr HIEW Moo-sau, Chairman of the GMB Association, briefed members on its submission, highlighting that operators of green minibus (GMB) were now facing increased competition from franchised bus services. He requested that a rationalization exercise be conducted to cover both buses and GMBs so as to help the latter survive. Furthermore as GMBs were, like buses, providing scheduled services with their fares, routings and timetables stipulated by TD, they should be entitled to diesel duty exemptions presently enjoyed by franchised buses.

46. In response, the Assistant Commissioner for Transport (AC for T) emphasised that there had been no change to Government's policy on GMBs with the size of the public light buses (PLB) fleet kept at 4,350 and the policy on conversion of red minibuses to GMBs continued. The Administration had also made efforts to introduce viable GMB routes and exercise due care in approving application for the introduction of new franchised or residents' bus services so that they would not affect the operation of existing GMB routes. However, having regard to Hong Kong's road capacity and geographical configuration, partial overlapping of routings was inevitable. Notwithstanding such overlaps, according to the 1994 to 1998 statistics, GMB operation had been able to expand at more or less the same rate as buses.

47. Miss CHOY So-yuk expressed concern about GMB operators' claim that their proposals and requests for improvement had always been rejected and urged the Administration to establish direct dialogue with the trade so as to handle their requests quickly. She also opined that the Panel should follow up on the progress of the trade's requests. Addressing her concerns, AC for T emphasised that the Administration were already trying to meet GMB operators' requests as far as practicable and that it was also their objective to make GMB operation viable. The Chairman proposed and Miss CHOY agreed that her proposal for direct dialogue between the two sides should be followed up by Duty Roster Members under the LegCo Redress system, which had scheduled a case conference for 1 June 1999 to look at the various problems faced by the trade.

Scope for new GMB routes

48. Where further development of GMB routes was concerned, the Chairman referred to para 13 of the Administration's paper and urged the Administration to note that although there had been no policy change, the improvement to road networks and bus service had restrained the development of new GMB routes on Hong Kong Island. AC for T reported that to help improve the financial viability of GMB operations, TD had commissioned a series of consultancy studies on GMB operations. The first one on Hong Kong Island had already been completed and according to the study findings, certain measures to improve the operational efficiency and financial viability of loss-making GMB routes had been identified. Although the Kowloon and New Territories studies had yet to be examined, she envisaged that there would be a wider scope for development of new GMB routes there, especially in providing feeder service for the new railways.

49. Mrs Selina CHOW declared interest as a resident in a tourist spot and expressed her support for the introduction of GMB routes to serve tourist spots having regard that roads there were narrow and hence unsafe for big buses. In response, AC for T emphasised the Administration would gladly consider proposals for GMB routes from the public.

The cap on PLBs' number

50. Members noted that the limitation order of the Executive Council to freeze the size of the PLB fleet at 4,350 had been imposed since 1976 and would be expired in June 1999. In this connection, a resolution would be moved on 16 June 1999 by the Administration to extend the limitation order by two years. Members were also assured that the limitation would not affect the expansion of GMB service as such could be effected by conversion of more red minibuses to GMBs.

Competition from residents' services

51. Dr TANG Siu-tong and Mrs Selina CHOW were concerned about the impacts of the proliferation of residents' buses on GMB operations. Mrs Selina CHOW in particular enquired whether residents' buses would be used by non-residents and if so whether the Administration were taking any measures to avoid overlapping of services at the planning stage. In response, AC for T explained that residents' bus services were provided to cater for transport needs of residents only and the number of such buses had decreased in the last year. The Administration would take action as appropriate in response to complaints if specific details were available. Commenting on Dr TANG Siu-tong's proposal to replace residents' buses with GMBs, AC for T advised that this would have to be examined on a case-by-case basis. She further pointed out that the demand for residents' bus service would only be concentrated during peak hours and might not therefore be financially viable to support GMB operation. Moreover, having regard that such service was organised by residents themselves and in particular if the roads within the relevant estates were private roads, the Administration should take into account of the choice of the residents concerned.

VII Any other business

52. There being no other business, the meeting ended at 1:15 p.m.

Legislative Council Secretariat
25 August 1999