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SCMP Reporter

CONSERVATIVES and liberals last night joined hands to block a $1 increase in tolls for three government tunnels, despite warnings that the move would discourage much-needed private investment for major infrastructure projects.

  The motion to reverse the tunnel tolls, proposed by the United Democrats' Reverend Fung Chi-wood, was passed 19 votes to 11.

  The Governor-in-Council decided early last month to raise the tolls for the Aberdeen and Shing Mun tunnels from $5 to $6, and for the Junk Bay tunnel from $3 to $4. The tolls came into effect on January 10 and were expected to bring in $48 million in thenext financial year.

   Before the original tolls can be restored, notice must be given in the Government Gazette. However, the Government Information Service was unable to say last night how soon this could occur.

  The Secretary for Treasury, Mr Yeung Kai-yin, warned that the block would discourage private investment on major transport infrastructure such as the Western Harbour Crossing.

  ''A too austere view of profitability of government utilities can only seriously discourage much-needed private participation in public transportation,'' he said.

  ''It's important not to cast any doubts on our willingness to see reasonable rates of return on such projects.''   He also warned that the practice, if continued, would seriously erode the Government's income from public utilities, which made up seven per cent of revenue.

  ''If this council lacks the courage from time to time to allow the Government to introduce some proper increases to fees and charges, let alone the present case, Hongkong revenue from these sources will be severely weakened,'' Mr Yeung said.

  But he promised to undertake an overall review on whether adjustments were needed on the target return rates on charges of road tunnels and other public utilities.

  The existing policy allows a target return of 15 per cent of average net fixed assets in regard to income from government tunnels.

  Mr Fung said the increase was unreasonable, as the rate of return for the tunnels was already 8.1 per cent before the toll increase.

  He said the policy of achieving a fixed rate of return contradicted the public interest.

  Mr Fung was supported by the conservative Co-operative Resources Centre.

  ''Government services should not operate on purely commercial principles,'' said Mrs Selina Chow Liang Shuk-yee.

  ''Shouldn't we question whether there is a need instead of keep saying there is a policy?   ''Would it not add more to the already embarrassing surplus?'' she said.

  Most independents, however, did not agree with Mr Fung's motion.

  Independent Mr Eric Li Ka-cheung criticised the motion as an impulsive move to block the Government's income without thorough review of the policy of target returns.

  ''To indulge in an impulsive move to take up this small risky proportion before a critical analysis would ultimately mean saying no to responsible management and public finance,'' Mr Li said.

  The reduction in the three tolls would cost about $113,000 per day in lost revenues, a Transport Department official said.

  However, chief transport officer Mr Sam Chan Tak-hing denied that a reduction in tolls for the tunnels would affect maintenance or other management operations.

  ''The only thing we would have to do is change the traffic signs to indicate the amount of toll and rewrite the computer software programme on tolls,'' he said.

  ''Rewriting the computer software is simple and straightforward and could be completed within 48 hours.''   A spokesman for the Cross Harbour Tunnel Company, which operates the Aberdeen Tunnel, said a reduction in the toll would have no affect on management because the Government paid a set fee for each user vehicle.

      The Transport Department refused to divulge how much it paid in fixed fees to the tunnel management companies.



Conservatives, liberals join to stop rise in tolls