Ombudsman to probe rising cost of taxi licences

The Ombudsman is to investigate the soaring cost of taxi licences in an effort to put a brake on fare rises.

Assistant Ombudsman Chan Wai-chung expressed concern at licence premium increases from $1.7 million at the last tender in September 1994 to $3.3 million from the first quarter of this year.

Only a limited number of licences are issued.

Mr Chan said he was worried passengers would suffer.

The Ombudsman had a role to ensure enough was done to prevent speculation.

'Our concern is what the subsequent effect is when prices go up,' he said. 'People always say the administration can't do anything drastic because it will make prices fall.