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Legco wants tunnel contract reviewed

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Lawmakers have urged the government to renegotiate its contract with the Route Three Company, which operates the Tai Lam Tunnel on Route 3, to avoid future toll-rise applications.

Legislators failed in June to reverse a $3 toll increase to $25 for private cars and taxis. The tunnel operator is entitled by law to increase the toll if its net revenue falls below a fixed sum agreed upon by the government.

Democrat Andrew Cheng Kar-foo said at a Legco transport panel meeting that the minimum net revenue estimate was 'too optimistic' and allowed the operator 'to raise the toll persistently even when they make $200-$300 million profit every year'.

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Wong Kwok-hing, the labour-sector lawmaker, agreed. 'Tate's Cairn Tunnel has to raise the toll at least six more times before meeting their target return. What can the government do to stop them?'

The permanent secretary for transport, Joshua Law Chi-kong, said the operator had to agree to any new terms.

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'This is a contract we signed 30 years ago; neither party can make unilateral alteration,' Mr Law said. 'If you want to change it you need the consent of the tunnel company.'

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