President, the franchise of the Tai Lam Tunnel (“TLT”) will expire on 31 May 2025. The Government has proposed the legislative amendments on this occasion mainly in response to the coming return of the operating right of TLT to the Government. The Government has also taken this opportunity of the takeover of TLT to adjust the TLT tolls, so as to address the aspirations of the public and the transport trades. The Liberal Party is in support of this. 

TLT was commissioned in 1998 with a design traffic flow of 140 000 vehicles per day. According to the data of the Transport Department, traffic at TLT has not reached its design capacity. The average daily traffic volume is only 80% of its design capacity, while the congestion problem on the other two roads connecting New Territories North and New Territories West to the urban areas, namely Tuen Mun Road and Tolo Highway, has worsened. The failure of TLT to achieve its diversion effect has been attributed to its high tolls. 

According to the Tai Lam Tunnel and Yuen Long Approach Road Ordinance, tolls may be increased as long as the actual revenue of the tunnel is less than the specified minimum estimated net revenue, and the toll increase does not require government approval. Although the actual TLT tolls are much lower than the statutory tolls, and concessions have been offered to commercial vehicles (“CVs”) in response to the aspirations of some members of the transport trades, such as concessionary tolls for articulated container vehicles and heavy goods vehicles crossing the tunnel at midnight, for empty trailers throughout the day, and for taxis carrying no passengers, the tolls are still on the high side. For this reason, there have been calls in society for the Government to intervene and discuss with the tunnel management company to lower the tolls. In the past, when the Government put forward the proposal to rationalize traffic flow among the three road harbour crossings (“RHCs”), there were also views that the Government should adjust the TLT tolls at the same time in order to achieve the diversion effect. 

With the return of the franchise of the Western Harbour Crossing to the Government, the Government was then able to implement the rationalization of traffic flow among the three RHCs and change motorists’ habits through toll adjustments complemented by the approach of time-varying tolls. At long last, the congestion problem of RHCs, which has plagued members of the public for years, has been eased. Today, the Government has also taken the opportunity of the takeover of TLT to adjust its tolls to divert traffic from Tuen Mun Road and Tolo Highway to dovetail with the development of new towns in the western and northern New Territories. 

The Government has advised that the tolls have responded to the aspirations of the public and the transport trades, and can also produce the diversion effect to alleviate the problem of traffic congestion on Tuen Mun Road and Tolo Highway, but since the Government’s annual revenue under the present toll proposal will reach $700 million, which is higher than the tunnel’s operating cost of $400 million, some members of the Bills Committee have requested the Government at the Bills Committee meeting to lower the tolls during off-peak time slots. Today, Mr Michael TIEN has even put forward a proposal, without discussion, to drastically reduce the TLT tolls so that only private cars and motor cycles travelling southbound in the morning and northbound in the evening during peak time slots would have to pay the tolls; and time-varying tolls would be introduced for CVs, while the all-day toll for taxis would be reduced from $28 to $5. The Liberal Party has great reservations about such a proposal. 

If the Government can lower the tolls further, the Liberal Party will of course welcome it, but we do not agree with casual toll reductions without evidential support, especially when the Government is now facing difficulties from the fiscal deficit. In addition, TLT is an important road linking the land boundary control points, container terminals and the airport. It is very important to maintain its smooth traffic flow. However, leaving aside the impact on the Government’s finances, the drastic toll reduction proposed by Mr TIEN in his amendment will increase the traffic flow at TLT and even lead to congestion. Eventually, all the three trunk roads connecting the northern and western New Territories will become congested, thus affecting the flow of people and goods. This is contrary to the original intent of the legislation. Given that the current toll plan, which is based on scientific data, can achieve the diversion effect and maintain the smooth flow of traffic at TLT, and given the Government’s commitment to conducting timely review, the Liberal Party considers that the current toll plan can be implemented on a pilot basis. The Government should actively consider lowering the tolls if there is still room to do so in the future.

 However, even if the tolls are lowered in the future, the Liberal Party hopes that CVs will be given priority. In respect of public transport, this is in line with the Government’s policy of encouraging the public to take public transport; in respect of goods vehicles, this is in line with the Government’s objective of consolidating Hong Kong’s development as an international logistics hub. 

The toll for CVs currently proposed by the Government has taken on board the Liberal Party’s view, being an all-day uniform toll as in the case of the rationalization of traffic flow among the three RHCs. The Government’s proposed taxi toll, an all-day uniform toll of $28, is lower than the original proposal and 52% less than the current toll, but if it can be brought into line with the $25 toll charged at the three RHCs, it will be more convenient for taxi drivers and the public.

TLT will implement time-varying tolls similar to those at the three RHCs, with a minimum toll of $18 for private cars during off-peak time slots, which is lower than the $28 charged to taxis; and the duration of the tolled off-peak time slots is almost as long as 12 hours. There is a view that this is tantamount to encouraging private car driving, which is contrary to the Government’s long-standing policy of encouraging the public to take public transport. 

As the off-peak toll of $18 for private cars is lower than the $28 for taxis, the taxi trade is really worried that this will favour illegal “white licence cars” and is tantamount to encouraging the public to travel on illegal “white licence cars”. As the Government’s efforts to combat illegal “white licence cars” are inadequate, illegal “white licence cars” have become rampant, throttling the room for survival of the trade and affecting the livelihood of drivers. Consequently, any measure that favours illegal “white licence cars” will cause concern to the trade. This is understandable. For this reason, I hope that in its future review of the relevant tolls, the Government will implement the principle of encouraging the public to use public transport services as far as possible and consider further reducing the TLT toll for taxis. 

For other CVs, the Government proposes an all-day toll of $43, which is 33% to 80% less than the original toll, but there is still a view that the toll is too high. However, from the perspective of the total cost of travel, the time and fuel cost savings from using TLT should be greater than the toll paid. It is indeed a wise choice. As the Government’s principle in setting tolls is “efficiency first” and it aims to support the development of the logistics business, I hope that the Government will consider further lowering the toll for CVs in its future review.

With these remarks, President, I support the passage of the Second Reading of the Road Tunnels (Government) (Amendment) Bill 2024, but oppose Mr TIEN’s amendment.