Lawmakers reject toll hike for Eastern tunnel

Arbitrators rejected a toll increase of about 40 per cent for the Eastern Harbour Tunnel on Tuesday, which means the fee will probably remain unchanged for at least the next four years.

The government welcomed the arbitrators’ decision, and Undersecretary for Transport and Housing Yau Shing-mu said, “The public will not need to suffer the consequences of a toll increase.”

The government will study the arbitrators’ reasons for the rejection, and report to the Executive Council, he said. The bureau will present plans to the public on how to prevent congestion by dividing traffic among the three harbour tunnels.

Tunnel operator New Hong Kong Tunnel took the matter to arbitration after the Executive Council, in June last year, rejected its application to raise tolls by between 38.5 per cent and 42.1 per cent. The company’s franchise ends in 2016, and the chance of it applying for another toll rise before then is understood to be slim.

The company yesterday said it would continue to “provide a safe and high-quality tunnel service to the driving public” despite the arbitrators’ decision. In its application for the toll increase, it said the rise was necessary to keep its operation profitable.

The company holds a 30-year franchise for the 2.2 kilometre Eastern Harbour Tunnel, and is paying the construction and on-going maintenance expenses. The tunnel will be transferred back to the government in 2016.