The operator of the Western Harbour Crossing said yesterday it will go ahead with a toll-increase plan on May 1 despite strong public outcry in society.

"The toll increase will absolutely go ahead," said Vernon Moore, chairman of New Hong Kong Tunnel Company Ltd, while attending a meeting of the Legislative Council's Panel on Transport.

Among other things, the toll for private cars, passenger vehicles and taxis will increase from HK$15 to HK$25.

"We have already deferred the plan for one month; and also deferred toll increase dates for empty taxis and light buses to July 1 and October 1 respectively."

At the meeting, legislators from across the board criticized the high toll increases.

The Democratic Party's Andrew Cheng urged the company to defer the increase again in order to reduce dissatisfaction in society.

He feared that car drivers would stay away from the Western Harbour Crossing and cram the Cross Harbour Tunnel at Hung Hom.

But Moore said the later the increase took effect, the higher the rate of the rise. He blamed the government for rejecting an increase from HK$15 to HK$20 in 2003.

Deputy Secretary for Environment, Transport & Works Annie Choi said the government could not stop the toll increases because an arbitration was in the company's favour.

As to traffic flow from May 1, she estimated there will be a daily increase of 8,400 and 3,800 vehicles for the Western Harbour Crossing and the Cross Harbour Tunnel respectively.

To this end, police and the Transport Department will take appropriate measures to deal with the additional traffic flow, she said.

At yesterday's meeting, Moore criticized academic Raymond So, from the Chinese University of Hong Kong, for "not knowing" finance and accounts.

So, who attended the panel meeting as a guest, suspected the company of deliberately deflating the internal rate of return for the sake of higher toll increases.

Based on information from the company's annual reports, he estimated its annual return from share capital was 19.4 per cent, as compared to 8.4 per cent claimed by the company.

"Although we used different calculation methods, the internal rate of return could in fact be higher than 8.4 per cent if we use the general accounting method," So said.

Moore was infuriated. He went on to refute the academic for using the wrong approach and accused him of "not knowing finance and accounts".

Moore insisted that his company's calculations were prepared by leading financial experts professionally and accurately, while the arbitration also backed the toll increases.

In this regard, he declined to provide any further financial information.

But he agreed to backtrack his remarks on So after he was criticized by Democratic Party Chairman Lee Wing-tat for "offending" an academic and a guest of the Legislative Council.

(HK Edition 04/23/2005 page2)