Hong Kong taxi association threatens strike in effort to pressure government to approve fare increase

Some 3,000 taxi drivers are threatening industrial action next week in an effort to pressure the government into giving the green light to a long-sought fare increase of over 20 per cent, an association representing the city’s cabbies has said. Chau Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, told the Post drivers might escalate their action if the government kept ignoring their requests for the fare rise. He said the taxi trade had been calling for the increase for three years, but the government had repeatedly found reasons to delay it, including the social unrest in 2019 and the ongoing Covid-19 pandemic. “The government is really heartless,” he said. “We have been facing the mounting pressure of rising fuel prices and premiums amid the pandemic. Hong Kong taxi alliance tests safety system to fix drivers’ bad habits, reduce accidents “The government can’t expect us to serve the public at our own expense, can it?” First proposed in 2018, the HK$6 (US$0.77) increase in the flag-fall rate for urban taxis – which serve Kowloon and Hong Kong Island – would bump the initial fare for hiring a cab to HK$30. Taxis serving the New Territories are also seeking a HK$6, or 23 per cent, jump in flag fall to HK$26.5, while Lantau Island taxis are seeking a HK$7, or 25.71 per cent, bump to HK$26. Separate increases have also been proposed for the cost per 200 metres. The planned increases are much higher than the last fare rise to be approved in April 2017, when urban taxi flag falls went up by 10 per cent. The fare hikes have run into resistance from commuter advocates, who point to perennial complaints about Hong Kong’s taxis, especially drivers who are rude, overcharge, cherry-pick passengers and take circuitous routes. But Chau said some 3,000 taxis planned to go on a strike next Thursday for a few hours to pressure the government to push the new increase through. “We’ve informed the government of our planned action. They said they had been looking into our fare rise request, but they can’t give us a timetable for when we can have the fare rise,” he said. “If we are left on our own, no one will be interested in joining the taxi industry.” Chau said that the taxi trade was just trying to stay afloat. “At least the government should give us some hope that there will be a light at the end of the tunnel,” he added. ‘Record-high’ insurance premium of HK$150,000 for Hong Kong taxi The taxi industry has protested against soaring premiums in recent years, but insurers blame the high rate of accidents involving cabs and the increasingly exorbitant damages sought by claimants. Average annual premiums have risen by more than a fifth, from HK$28,050 in 2019 to HK$33,902 last year. A record premium of almost HK$150,000 was slapped on one taxi after it was involved in an accident and its driver was fined HK$1,000 for careless driving. Hong Kong Taxi Council vice-chairman Ng Kwan-sing said two major insurers intended to increase premiums by more than 10 per cent after August 1 to almost HK$50,000. The firms would also cease to insure taxis that were more than 20 years old regardless of their condition, he added. Unhappy operators have asked the government repeatedly to either allow them to charge passengers an extra HK$6 per trip as an insurance surcharge, or approve their request to raise fares. A spokeswoman for the Transport Department urged the taxi industry to be rational and refrain from moves that would affect the public. “The government continues to keep close liaison with the trade, and appeals to [industry players] to maintain rationality and restraint in expressing their views,” she said. She added that in view of the social unrest in 2019 and the ongoing pandemic, the government was reviewing the fare increase application “afresh”. Aspects being looked into include financial viability of taxi businesses, operating revenue and costs covering fuel prices and insurance premiums, service quality as well as “public acceptability of the magnitude of fare increases”. “The government will submit the recommendation on the fare increase to the Executive Council and Legislative Council for consideration after the assessment is completed,” she said. The spokeswoman also said authorities would explore ways to address the issue of soaring taxi premiums.