60pc rise for car licences rejected

PUBLISHED : Wednesday, 29 December, 1993, 12:00am
UPDATED : Wednesday, 29 December, 1993, 12:00am

LEGISLATORS yesterday rejected a proposal to raise levies on vehicle licences and driving licences by 60 per cent next year.

They asked the Government to work out a much lower rate of increase.

The Government said that levies needed to rise from $48 to $78 to help the victims of traffic accidents.

It proposed the levies would be raised by another 60 per cent in 1995.

But in a meeting of the bills committee studying the legislative amendment yesterday, legislators said the rise was unreasonable.

The Government said the increase was required to compensate for a reduction in its contribution to the Travel Accident Victims' Assistance Fund.

Pedestrians, paid for by the Government, vehicle owners and drivers contribute equally.

The Executive Council decided last year that the Government should reduce its contribution to the fund from one-third to one-fifth because statistics showed that the number of accidents caused by negligence of pedestrians had dwindled.

It argued that vehicle owners and drivers should shoulder a larger share.

But legislators said the fund was a social security measure. They asked that the rate of increase be calculated again based on the Government contributing a one-third share.