Green taxis in the New Territories may implement a new fare scheme by mid January, following a similar adjustment in urban red taxis.

The Transport Department reached an agreement yesterday on a new fare structure with 16 taxi associations in the New Territories, which represent more than 90 percent of green taxis running in the rural areas.

As part of the agreement, the Transport Department will speed up approval of the new fares, hoping to implement an increase in short-haul fares and decreases in long-haul fares by mid-January. A similar adjustment for red urban taxis took effect last month.

Under the new proposal, the flag drop charge (for the first 2 km) will increase from HK$13.50 to HK$15.50 and the charge for every 200 meters from 2-8 km will increase from HK$1.20 to HK$1.30, after 8 km the increase every 200 meters will drop to HK$1.

Commissioner for Transport Alan Wong said he was very glad to reach an agreement and thanked the heads of the taxi trade associations.

The Legislative Council's Panel on Transport will discuss the new fare proposal Thursday.

The Transport Advisory Council will also consider the matter before submitting the plan to the Executive Council for approval and then to the Legislative Council to complete the process.

Green taxi drivers had complained after fares were adjusted for red taxis. The new fares also highlighted the problems caused by taxi drivers that offer discounts for long trips, negotiating directly with passengers. A fleet of taxis blocked the North Lantau Highway in protest on December 3.

"We also hope to take this opportunity to rectify the market imbalance due to the emergence of 'discount gangs'," said Wong. "A big part of long haul trips are dominated by the discount gangs who offer discounts to customers, it is very unfair to law-abiding taxi drivers."

Wong had some harsh words for drivers that partipated in the December 3 blockade, saying they lacked social responsibility and treated passengers as hostages. He added that some drivers have apologized for the incident and he believes most drivers are sensible, law-abiding people.

Chan Ming-sang, chairman of Sun Hing Taxi Radio Association, said the 16 associations involved in the negotiations support the new fare structure. He said long-haul taxi fares for green taxis should match those of red taxis or they will not be able to compete.

Talking about the blockade last week, Chan said only a few outrageous drivers participated, hoping to grasp public attention. He called on drivers to remain calm because the new fare policy is good for the taxi trade.

Some green taxi drivers who instigated the blockade have taken a different view. They say the associations do not represent them but are mostly made up of companies that support the new arrangement of higher short haul fares and lower long haul ones.

(HK Edition 12/10/2008 page1)